Unity Software (NYSE:U) Stock Price Up 4.8% on Analyst Upgrade

Unity Software Inc. (NYSE:U)’s share price shot up 4.8% during mid-day trading on Monday after Morgan Stanley raised their price target on the stock from $30.00 to $32.00. Morgan Stanley currently has an overweight rating on the stock. Unity Software traded as high as $20.74 and last traded at $20.38. 5,083,240 shares traded hands during trading, a decline of 72% from the average session volume of 17,888,748 shares. The stock had previously closed at $19.45.

U has been the topic of a number of other reports. Oppenheimer raised shares of Unity Software from a “market perform” rating to an “outperform” rating and set a $38.00 price objective on the stock in a report on Tuesday, February 10th. Wedbush restated an “outperform” rating and issued a $30.00 target price on shares of Unity Software in a research note on Friday. BTIG Research lowered their price target on Unity Software from $41.00 to $39.00 and set a “buy” rating for the company in a research report on Friday. Arete Research upgraded Unity Software from a “neutral” rating to a “buy” rating and set a $48.00 price target on the stock in a research note on Monday, December 1st. Finally, Citizens Jmp reissued a “market outperform” rating and issued a $37.00 price objective on shares of Unity Software in a report on Friday. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Unity Software presently has an average rating of “Moderate Buy” and an average target price of $37.41.

Insider Transactions at Unity Software

In related news, CFO Jarrod Yahes sold 6,205 shares of the firm’s stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $21.03, for a total transaction of $130,491.15. Following the completion of the transaction, the chief financial officer owned 728,381 shares of the company’s stock, valued at $15,317,852.43. This trade represents a 0.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CAO Mark Barrysmith sold 10,578 shares of the business’s stock in a transaction on Wednesday, February 25th. The shares were sold at an average price of $18.07, for a total transaction of $191,144.46. Following the transaction, the chief accounting officer owned 383,901 shares of the company’s stock, valued at $6,937,091.07. This represents a 2.68% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 41,684 shares of company stock worth $773,350 over the last 90 days. 3.61% of the stock is currently owned by company insiders.

More Unity Software News

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

• Positive Sentiment: Preliminary Q1 beat and strategic pivot — Unity raised Q1 revenue and adjusted EBITDA guidance and announced it is exiting legacy ad assets (ironSource), refocusing on its high-margin Vector AI ad platform and Create engine growth. Market reaction was strong on volume, signaling investor conviction. Unity Soars After Axing a Business, Here’s Why
• Positive Sentiment: Analyst upgrade — Seeking Alpha upgraded Unity to a “Strong Buy” citing excellent preliminary Q1 results and accelerating core growth, reinforcing the bullish narrative. Unity: Upgrade To Strong Buy On Excellent Preliminary Q1 Results
• Positive Sentiment: Analyst support and target increases — Some firms reiterated Buy/Outperform ratings and at least one published a higher price target ($32), reflecting confidence that the refocus improves long‑term margins and growth visibility. Unity Software (NYSE:U) Price Target Raised to $32.00
• Neutral Sentiment: Other analyst moves and market reactions — additional analyst notes include a small PT increase to $21 and headlines about shares gapping up after upgrades; these items support momentum but add limited new information. Unity Software (NYSE:U) Price Target Raised to $21.00
• Negative Sentiment: Mixed analyst positioning — BTIG trimmed its price target to $39 (a cut) and Wells Fargo lowered its target to $29, showing some skepticism on valuation and near-term upside; these cuts can cap rallies until execution confirms the strategy. BTIG Research Cuts Unity Software (NYSE:U) Price Target to $39.00
• Negative Sentiment: Near-term caution on estimates — market commentaries (Yahoo/Zacks) note that despite the rally, recent earnings-estimate revision trends may not support a sustained move higher unless the beat-and-clarity are repeated in reported Q1 results. Unity Software (U) Surges 13.5%: Is This an Indication of Further Gains?

Institutional Trading of Unity Software

Hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. raised its position in Unity Software by 2.9% during the fourth quarter. Vanguard Group Inc. now owns 35,553,296 shares of the company’s stock valued at $1,570,389,000 after acquiring an additional 996,685 shares in the last quarter. Slate Path Capital LP boosted its position in Unity Software by 25.4% in the 2nd quarter. Slate Path Capital LP now owns 20,016,952 shares of the company’s stock worth $484,410,000 after purchasing an additional 4,048,484 shares in the last quarter. Wellington Management Group LLP grew its stake in shares of Unity Software by 58.7% during the 3rd quarter. Wellington Management Group LLP now owns 18,213,875 shares of the company’s stock worth $729,284,000 after purchasing an additional 6,734,285 shares during the period. Norges Bank acquired a new stake in shares of Unity Software during the 2nd quarter worth approximately $151,221,000. Finally, Geode Capital Management LLC increased its holdings in shares of Unity Software by 5.9% during the 4th quarter. Geode Capital Management LLC now owns 5,852,047 shares of the company’s stock valued at $258,547,000 after purchasing an additional 328,595 shares in the last quarter. Hedge funds and other institutional investors own 73.46% of the company’s stock.

Unity Software Stock Performance

The company has a current ratio of 1.84, a quick ratio of 1.84 and a debt-to-equity ratio of 0.52. The firm’s fifty day moving average price is $23.93 and its two-hundred day moving average price is $35.53. The stock has a market capitalization of $8.90 billion, a PE ratio of -21.40, a price-to-earnings-growth ratio of 10.43 and a beta of 2.15.

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

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.