Unity Software Inc. (NYSE:U) Receives Average Rating of “Moderate Buy” from Analysts

Shares of Unity Software Inc. (NYSE:U) have received an average recommendation of “Moderate Buy” from the twenty-four ratings firms that are currently covering the stock, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a sell rating, seven have issued a hold rating, fourteen have given a buy rating and one has assigned a strong buy rating to the company. The average 1-year target price among analysts that have issued a report on the stock in the last year is $39.29.

Several equities research analysts have recently weighed in on U shares. Piper Sandler raised Unity Software from a “neutral” rating to an “overweight” rating and increased their price objective for the company from $43.00 to $59.00 in a report on Thursday, December 11th. Freedom Capital upgraded shares of Unity Software to a “strong-buy” rating in a research report on Thursday, January 15th. Citigroup decreased their price target on shares of Unity Software from $52.00 to $43.00 and set a “buy” rating for the company in a research note on Thursday. Wells Fargo & Company lowered their price objective on shares of Unity Software from $54.00 to $38.00 and set an “overweight” rating on the stock in a research report on Thursday. Finally, Jefferies Financial Group lifted their price objective on shares of Unity Software from $49.00 to $55.00 and gave the company a “buy” rating in a research note on Monday, January 5th.

Trending Headlines about Unity Software

Here are the key news stories impacting Unity Software this week:

• Positive Sentiment: Q4 beat and improving profitability — Unity reported $503M revenue and beat EPS estimates; management highlighted record-ish free cash flow and margin progress, a direct counterpoint to the sell-off. U’s Q4 Earnings & Revenues Surpass Estimates
• Positive Sentiment: Vector momentum — management and bullish coverage point to strong ad/Vector growth (large January YoY gains and management targeting ~ $1B annualized run-rate by end-2026), which supports medium-term revenue and margin upside. Unity: A Meltdown Worth Buying
• Neutral Sentiment: Analyst responses mixed — many firms cut price targets to reflect near-term headwinds but some maintain Buy/Outperform ratings, leaving a wide spread between market price and some analyst targets. Unity Software Analysts Slash Their Forecasts After Q4 Results
• Neutral Sentiment: Technical/contrarian case — several pieces note the stock is deeply oversold and that the sell-off may have priced in worst-case scenarios, creating a potential buying opportunity for longer-term investors. Down 49% in 4 Weeks, Here’s Why You Should You Buy the Dip
• Negative Sentiment: Weak near-term guidance — management guided Q1 revenue $480–$490M, below consensus, triggering the sharp sell-off as the company intentionally winds down lower-margin legacy ad assets to accelerate migration to Vector. What’s Going On With Unity Stock Friday?
• Negative Sentiment: Market reaction and downgraded sentiment — the guidance miss and strategy pivot prompted steep intraday declines, multiple price-target cuts and at least one analyst downgrade, increasing near-term volatility and downside risk. Unity Software (U) Stock Tumbles 26% After Revenue Forecast Misses Mark

Unity Software Stock Down 5.3%

Shares of Unity Software stock opened at $18.60 on Friday. The company has a quick ratio of 2.78, a current ratio of 1.84 and a debt-to-equity ratio of 0.52. Unity Software has a 52-week low of $15.33 and a 52-week high of $52.15. The company has a market capitalization of $8.05 billion, a P/E ratio of -19.38, a P/E/G ratio of 17.90 and a beta of 2.04. The company has a 50 day moving average of $40.18 and a 200 day moving average of $39.58.

Unity Software (NYSE:U) last announced its quarterly earnings data on Wednesday, February 11th. The company reported $0.24 earnings per share for the quarter, beating analysts’ consensus estimates of $0.20 by $0.04. The business had revenue of $503.09 million for the quarter, compared to analyst estimates of $490.64 million. Unity Software had a negative net margin of 21.77% and a negative return on equity of 4.76%. The company’s revenue was up 10.1% on a year-over-year basis. During the same period last year, the business earned ($0.30) EPS. As a group, research analysts forecast that Unity Software will post -1.25 EPS for the current fiscal year.

Insider Transactions at Unity Software

In other Unity Software news, COO Alexander Blum sold 40,693 shares of the company’s stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $41.38, for a total transaction of $1,683,876.34. Following the completion of the sale, the chief operating officer directly owned 563,118 shares of the company’s stock, valued at $23,301,822.84. This represents a 6.74% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director David Helgason sold 393,312 shares of Unity Software stock in a transaction that occurred on Thursday, December 11th. The shares were sold at an average price of $49.64, for a total value of $19,524,007.68. Following the completion of the transaction, the director owned 5,439,173 shares in the company, valued at $270,000,547.72. This trade represents a 6.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,338,021 shares of company stock worth $63,138,575 over the last three months. 3.61% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Unity Software

A number of large investors have recently modified their holdings of the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Unity Software by 5.9% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 813,176 shares of the company’s stock worth $15,930,000 after buying an additional 45,481 shares during the period. Focus Partners Wealth purchased a new stake in shares of Unity Software during the 1st quarter worth approximately $260,000. US Bancorp DE grew its holdings in shares of Unity Software by 26.4% in the 2nd quarter. US Bancorp DE now owns 33,963 shares of the company’s stock worth $822,000 after acquiring an additional 7,103 shares during the period. Callan Family Office LLC acquired a new stake in shares of Unity Software in the 2nd quarter worth approximately $305,000. Finally, Vanguard Personalized Indexing Management LLC increased its stake in Unity Software by 9.4% in the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 34,558 shares of the company’s stock valued at $836,000 after purchasing an additional 2,962 shares in the last quarter. 73.46% of the stock is owned by hedge funds and other institutional investors.

Unity Software Company Profile

Unity Software is a leading provider of a real-time 3D development platform that enables creators across industries to design, build and operate interactive, real-time experiences. Originally focused on the game development market, Unity’s technology now extends into sectors such as film, automotive, architecture, engineering and construction, delivering immersive content for mobile, desktop, console, augmented reality and virtual reality devices. The company’s core offering comprises a suite of authoring tools, runtime engines and cloud services that streamline the creation and deployment of interactive 3D applications.

The Unity Editor serves as the central hub where developers design scenes, script behavior and iterate on assets.