Citigroup Issues Pessimistic Forecast for Unity Software (NYSE:U) Stock Price

Unity Software (NYSE:U) had its price target dropped by stock analysts at Citigroup from $52.00 to $43.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The firm presently has a “buy” rating on the stock. Citigroup’s price objective suggests a potential upside of 131.16% from the company’s current price.

A number of other equities research analysts have also recently commented on the stock. Macquarie Infrastructure upgraded shares of Unity Software from a “neutral” rating to an “outperform” rating and raised their target price for the stock from $33.00 to $50.00 in a research note on Friday, November 7th. Citizens Jmp decreased their price objective on shares of Unity Software from $50.00 to $37.00 and set a “market outperform” rating on the stock in a research report on Thursday. Oppenheimer upgraded shares of Unity Software from a “market perform” rating to an “outperform” rating and set a $38.00 target price on the stock in a research note on Tuesday. Jefferies Financial Group increased their price target on Unity Software from $49.00 to $55.00 and gave the stock a “buy” rating in a research note on Monday, January 5th. Finally, Wells Fargo & Company lowered their price objective on Unity Software from $54.00 to $38.00 and set an “overweight” rating on the stock in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $39.29.

Unity Software Trading Down 5.3%

NYSE:U opened at $18.60 on Thursday. Unity Software has a one year low of $15.33 and a one year high of $52.15. The business has a fifty day moving average price of $40.18 and a 200-day moving average price of $39.58. The firm has a market capitalization of $8.05 billion, a price-to-earnings ratio of -19.38, a price-to-earnings-growth ratio of 17.90 and a beta of 2.04. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.84 and a quick ratio of 2.78.

Unity Software (NYSE:U) last released 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 business had revenue of $503.09 million during the quarter, compared to analyst estimates of $490.64 million. During the same quarter in the previous year, the company posted ($0.30) earnings per share. Unity Software’s revenue for the quarter was up 10.1% on a year-over-year basis. Sell-side analysts forecast that Unity Software will post -1.25 EPS for the current year.

Insider Activity at Unity Software

In related news, Director Tomer Bar-Zeev sold 250,000 shares of Unity Software stock in a transaction dated Monday, December 1st. The shares were sold at an average price of $41.93, for a total transaction of $10,482,500.00. Following the completion of the transaction, the director directly owned 1,048,146 shares of the company’s stock, valued at approximately $43,948,761.78. The trade was a 19.26% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Alexander Blum sold 40,693 shares of the stock in a transaction dated 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 in the company, valued at $23,301,822.84. This trade represents a 6.74% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 1,338,021 shares of company stock valued at $63,138,575 over the last three months. Corporate insiders own 3.61% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. REAP Financial Group LLC purchased a new stake in Unity Software in the 4th quarter valued at about $28,000. Root Financial Partners LLC bought a new stake in shares of Unity Software during the third quarter valued at approximately $27,000. V Square Quantitative Management LLC purchased a new stake in shares of Unity Software in the fourth quarter valued at approximately $30,000. Larson Financial Group LLC boosted its holdings in shares of Unity Software by 88.1% in the third quarter. Larson Financial Group LLC now owns 728 shares of the company’s stock valued at $29,000 after purchasing an additional 341 shares during the period. Finally, International Assets Investment Management LLC bought a new position in Unity Software in the fourth quarter worth approximately $36,000. Hedge funds and other institutional investors own 73.46% of the company’s stock.

Key Stories Impacting 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

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.