UBS Group Lowers Unity Software (NYSE:U) Price Target to $32.00

Unity Software (NYSE:U) had its price target lowered by analysts at UBS Group from $46.00 to $32.00 in a research note issued on Tuesday,Benzinga reports. The firm currently has a “neutral” rating on the stock. UBS Group’s target price would indicate a potential upside of 49.34% from the stock’s previous close.

A number of other equities research analysts have also issued reports on the company. Deutsche Bank Aktiengesellschaft initiated coverage on Unity Software in a research note on Wednesday, October 22nd. They issued a “hold” rating and a $39.00 target price for the company. Jefferies Financial Group increased their price objective on shares of Unity Software from $49.00 to $55.00 and gave the company a “buy” rating in a research report on Monday, January 5th. Piper Sandler upgraded shares of Unity Software from a “neutral” rating to an “overweight” rating and lifted their price objective for the company from $43.00 to $59.00 in a research note on Thursday, December 11th. BTIG Research upgraded shares of Unity Software from a “neutral” rating to a “buy” rating and set a $60.00 target price for the company in a research note on Thursday, December 11th. Finally, Arete Research raised shares of Unity Software from a “neutral” rating to a “buy” rating and set a $48.00 price target for the company in a report on Monday, December 1st. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, Unity Software currently has a consensus rating of “Moderate Buy” and a consensus price target of $44.46.

Unity Software Stock Down 26.3%

U opened at $21.43 on Tuesday. Unity Software has a 12 month low of $15.33 and a 12 month high of $52.15. The business has a 50-day moving average of $41.22 and a two-hundred day moving average of $39.83. The company has a debt-to-equity ratio of 0.70, a current ratio of 2.78 and a quick ratio of 2.78. The stock has a market capitalization of $9.17 billion, a price-to-earnings ratio of -20.41, a price-to-earnings-growth ratio of 30.46 and a beta of 2.04.

Unity Software (NYSE:U) last released its quarterly earnings data on Wednesday, February 11th. The company reported $0.24 EPS for the quarter, topping analysts’ consensus estimates of $0.20 by $0.04. The business had revenue of $503.09 million during the quarter, compared to the consensus estimate of $490.64 million. Unity Software had a negative return on equity of 9.45% and a negative net margin of 24.15%.The business’s revenue for the quarter was up 10.1% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.30) EPS. On average, research analysts expect that Unity Software will post -1.25 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Tomer Bar-Zeev sold 250,000 shares of the firm’s stock in a transaction dated Monday, December 1st. The stock was sold at an average price of $41.93, for a total transaction of $10,482,500.00. Following the completion of the sale, the director directly owned 1,048,146 shares of the company’s stock, valued at $43,948,761.78. This trade represents a 19.26% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director David Helgason sold 393,312 shares of Unity Software stock in a transaction dated 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 sale, the director owned 5,439,173 shares of the company’s stock, valued at approximately $270,000,547.72. This represents a 6.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 1,338,021 shares of company stock worth $63,138,575. Insiders own 3.61% of the company’s stock.

Institutional Investors Weigh In On Unity Software

A number of large investors have recently added to or reduced their stakes in the stock. GAMMA Investing LLC raised its position in shares of Unity Software by 10.8% in the third quarter. GAMMA Investing LLC now owns 2,967 shares of the company’s stock valued at $119,000 after purchasing an additional 288 shares during the period. Newbridge Financial Services Group Inc. grew its stake in Unity Software by 12.9% in the 3rd quarter. Newbridge Financial Services Group Inc. now owns 2,696 shares of the company’s stock valued at $108,000 after buying an additional 308 shares during the last quarter. Xponance Inc. raised its holdings in Unity Software by 1.8% in the 3rd quarter. Xponance Inc. now owns 18,291 shares of the company’s stock worth $732,000 after acquiring an additional 328 shares during the period. Larson Financial Group LLC raised its holdings in Unity Software by 88.1% in the 3rd quarter. Larson Financial Group LLC now owns 728 shares of the company’s stock worth $29,000 after acquiring an additional 341 shares during the period. Finally, Allworth Financial LP lifted its position in Unity Software by 28.4% during the 2nd quarter. Allworth Financial LP now owns 1,865 shares of the company’s stock worth $45,000 after acquiring an additional 412 shares during the last quarter. Institutional investors own 73.46% of the company’s stock.

Unity Software News Roundup

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

• Positive Sentiment: Q4 beat on revenue and profitability; company showed improved cash generation (Q4 revenue ~$503.1M, EPS $0.24, strong free cash flow and adjusted EBITDA). These results support the view of an operational turnaround. BusinessWire: Q4 Results
• Positive Sentiment: Momentum in Vector (AI-powered ad/product platform) and Create was highlighted by management as the growth driver; Vector showed strong sequential growth and management expects material ramp this year — a constructive long-term catalyst if adoption continues. Yahoo: Q4 Earnings Highlights
• Positive Sentiment: Sell-side conviction remains mixed but includes bullish takes: Oppenheimer upgraded to outperform ($38 PT) and Needham reaffirmed buy with a $50 PT — indicating some analysts see substantial upside if the transition succeeds. Yahoo: Oppenheimer Upgrade
• Neutral Sentiment: Full earnings/call detail is available (transcript and replay) — useful for investors who want management color on the IronSource wind‑down, Vector metrics and timing of revenue re-acceleration. Seeking Alpha: Earnings Call Transcript
• Neutral Sentiment: Corporate governance update: Bernard Kim was added to the board — a standard board refresh item investors may view as incremental. FinanzNachrichten: Board Appointment
• Negative Sentiment: Guidance miss: Unity guided Q1 revenue $480M–$490M, below the ~$492M–$494M consensus. The below‑consensus outlook was the primary trigger for heavy selling and concern about near‑term demand. Reuters: Downbeat Forecast
• Negative Sentiment: Management is intentionally shutting down legacy, lower‑margin ad inventory (IronSource) to accelerate migration to Vector — that creates a temporary revenue “air pocket,” amplifying near‑term headline weakness and investor anxiety. MarketWatch: AI Displacement Fears
• Negative Sentiment: Analyst and sentiment moves: some firms cut targets (e.g., UBS lowered PT to $32) and commentators flagged AI exposure and execution risk — contributing to the large volume sell‑off and oversold technicals. Benzinga: Analyst/Target Moves

About Unity Software

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.