Wedbush Lowers Unity Software (NYSE:U) Price Target to $30.00

Unity Software (NYSE:U) had its price target dropped by equities researchers at Wedbush from $37.00 to $30.00 in a research report issued on Thursday,Benzinga reports. The firm presently has an “outperform” rating on the stock. Wedbush’s target price would indicate a potential upside of 61.27% from the stock’s previous close.

Other analysts also recently issued research reports about the company. Barclays dropped their price target on Unity Software from $35.00 to $28.00 and set an “equal weight” rating on the stock in a research note on Thursday. Needham & Company LLC reiterated a “buy” rating and set a $50.00 price objective on shares of Unity Software in a report on Wednesday. Piper Sandler upgraded Unity Software from a “neutral” rating to an “overweight” rating and boosted their target price for the company from $43.00 to $59.00 in a research note on Thursday, December 11th. Macquarie Infrastructure raised Unity Software from a “neutral” rating to an “outperform” rating and upped their price target for the stock from $33.00 to $50.00 in a research report on Friday, November 7th. 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 research note on Monday, December 1st. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $39.29.

Unity Software Stock Down 5.3%

Unity Software stock opened at $18.60 on Thursday. The stock has a market capitalization of $8.05 billion, a PE ratio of -19.38, a price-to-earnings-growth ratio of 17.90 and a beta of 2.04. Unity Software has a twelve month low of $15.33 and a twelve month high of $52.15. The company has a quick ratio of 2.78, a current ratio of 1.84 and a debt-to-equity ratio of 0.52. 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 issued its quarterly earnings data on Wednesday, February 11th. The company reported $0.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.20 by $0.04. The company had revenue of $503.09 million during the quarter, compared to the consensus estimate of $490.64 million. Unity Software had a negative net margin of 21.77% and a negative return on equity of 4.76%. The firm’s revenue was up 10.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.30) earnings per share. On average, equities research analysts anticipate that Unity Software will post -1.25 EPS for the current fiscal year.

Insider Activity

In other Unity Software news, CEO Matthew S. Bromberg sold 41,025 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 value of $1,697,614.50. Following the sale, the chief executive officer owned 1,192,541 shares in the company, valued at $49,347,346.58. This represents a 3.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, COO Alexander Blum sold 40,693 shares of Unity Software stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $41.38, for a total value of $1,683,876.34. Following the transaction, the chief operating officer owned 563,118 shares of the company’s stock, valued at $23,301,822.84. This represents a 6.74% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 1,338,021 shares of company stock valued at $63,138,575. 3.61% of the stock is owned by insiders.

Hedge Funds Weigh In On Unity Software

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Root Financial Partners LLC bought a new position in shares of Unity Software in the third quarter valued at about $27,000. Atlantic Union Bankshares Corp bought a new position in Unity Software in the 2nd quarter valued at about $28,000. REAP Financial Group LLC bought a new position in Unity Software in the 4th quarter valued at about $28,000. Larson Financial Group LLC lifted its position in Unity Software by 88.1% during the third 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 last quarter. Finally, V Square Quantitative Management LLC acquired a new stake in Unity Software during the fourth quarter worth approximately $30,000. 73.46% of the stock is owned by institutional investors.

Unity Software News Roundup

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 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.