Wells Fargo & Company Has Lowered Expectations for Unity Software (NYSE:U) Stock Price

Unity Software (NYSE:U) had its price objective cut by analysts at Wells Fargo & Company from $38.00 to $29.00 in a note issued to investors on Friday,Benzinga reports. The firm presently has an “overweight” rating on the stock. Wells Fargo & Company‘s target price suggests a potential upside of 48.93% from the stock’s previous close.

Other research analysts have also recently issued research reports about the company. The Goldman Sachs Group decreased their target price on Unity Software from $47.00 to $27.00 and set a “neutral” rating on the stock in a research report on Thursday, February 12th. Oppenheimer upgraded shares of Unity Software from a “market perform” rating to an “outperform” rating and set a $38.00 price target on the stock in a research note on Tuesday, February 10th. Freedom Capital raised shares of Unity Software to a “strong-buy” rating in a report on Thursday, January 15th. UBS Group dropped their price objective on shares of Unity Software from $46.00 to $32.00 and set a “neutral” rating for the company in a research note on Tuesday, February 10th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Unity Software in a research report on Wednesday, January 21st. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Unity Software has an average rating of “Moderate Buy” and a consensus price target of $37.41.

Unity Software Stock Up 13.7%

NYSE U opened at $19.47 on Friday. The business has a fifty day moving average price of $24.34 and a two-hundred day moving average price of $35.74. The stock has a market capitalization of $8.43 billion, a PE ratio of -20.28, a PEG ratio of 10.43 and a beta of 2.14. Unity Software has a fifty-two week low of $15.33 and a fifty-two week high of $52.15. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.84 and a quick ratio of 1.84.

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

Insider Activity

In other news, CAO Mark Barrysmith sold 10,578 shares of the business’s stock in a transaction dated Wednesday, February 25th. The stock was sold at an average price of $18.07, for a total transaction of $191,144.46. Following the sale, the chief accounting officer directly owned 383,901 shares in the company, valued at approximately $6,937,091.07. The trade was a 2.68% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Jarrod Yahes sold 6,205 shares of the company’s stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $21.03, for a total value of $130,491.15. Following the completion of the transaction, the chief financial officer directly owned 728,381 shares of the company’s stock, valued at $15,317,852.43. This represents a 0.84% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 41,684 shares of company stock valued at $773,350. 3.61% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Unity Software

Several institutional investors and hedge funds have recently added to or reduced their stakes in U. GAMMA Investing LLC raised its stake in shares of Unity Software by 10.8% during the third quarter. GAMMA Investing LLC now owns 2,967 shares of the company’s stock valued at $119,000 after acquiring an additional 288 shares during the last quarter. Newbridge Financial Services Group Inc. grew its stake in shares of Unity Software by 12.9% in the third quarter. Newbridge Financial Services Group Inc. now owns 2,696 shares of the company’s stock worth $108,000 after purchasing an additional 308 shares during the last quarter. Xponance Inc. increased its holdings in Unity Software by 1.8% in the third quarter. Xponance Inc. now owns 18,291 shares of the company’s stock valued at $732,000 after purchasing an additional 328 shares during the period. Larson Financial Group LLC raised its position in Unity Software by 88.1% during the 3rd quarter. Larson Financial Group LLC now owns 728 shares of the company’s stock worth $29,000 after purchasing an additional 341 shares during the last quarter. Finally, Swiss Life Asset Management Ltd raised its position in Unity Software by 3.1% during the 4th quarter. Swiss Life Asset Management Ltd now owns 14,861 shares of the company’s stock worth $656,000 after purchasing an additional 449 shares during the last quarter. 73.46% of the stock is currently owned by institutional investors and hedge funds.

Key Unity Software News

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

• Positive Sentiment: Preliminary Q1 beat — Unity said preliminary revenue of $505M–$508M (vs. prior guidance $480M–$490M) and Adjusted EBITDA $130M–$135M (vs. $105M–$110M); management cited Unity V as a driver and flagged a plan to exit non‑strategic ad units to boost growth/profitability. Business Wire: Preliminary Results
• Positive Sentiment: Market reaction & company update — Coverage notes the upbeat preview and strategic shake‑up as the immediate reason for the rally. Investors are treating the combination of better-than-expected Q1 metrics and a streamlined business mix as meaningful de‑risking. Proactive Investors: Shares Jump After Upbeat Preliminary Results
• Positive Sentiment: Analyst support — Multiple firms reiterated/raised ratings and targets (e.g., Morgan Stanley raised its price target to $32 and set an “overweight” rating; Citizens/JMP reaffirmed a $37 Market Outperform). Those actions lend credibility to the rebound thesis and support buying interest. Benzinga: Analyst Actions
• Positive Sentiment: Heavy call buying — Unusually large options activity: ~57,327 call contracts traded (≈15% above typical daily call volume), consistent with directional bullish speculation or hedged positions ahead of the print. (No link)
• Positive Sentiment: China sale speculation — Reports that China asset sale talk has intensified are fueling M&A speculation, which can attract event‑driven buyers and bid up the stock while details remain unresolved. 247wallst: China Sale Talk
• Neutral Sentiment: Guidance/preview coverage — Several outlets are highlighting the company’s updated Q1 outlook and strategic changes; that coverage increases visibility but outcomes depend on the formal earnings release and management commentary. Benzinga: What’s Behind The Jump
• Negative Sentiment: Competitive / adtech skepticism — Comparative analyses argue rival Digital Turbine may have the edge in adtech metrics (ODS/AGP growth) and point to lingering weaknesses in parts of Unity’s ad platform, which could cap upside if execution stalls. Zacks: APPS vs U AdTech Comparison
• Negative Sentiment: Mixed analyst moves — Some firms trimmed price targets (e.g., Wells Fargo lowered its target from $38 to $29 despite keeping an “overweight” call), reflecting ongoing model risk and differing views on longer‑term monetization — a reminder the recovery isn’t unanimous. Benzinga: Analyst Notes

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.