Barclays Cuts Unity Software (NYSE:U) Price Target to $28.00

Unity Software (NYSE:U) had its price objective reduced by Barclays from $35.00 to $28.00 in a research note published on Thursday,Benzinga reports. They currently have an equal weight rating on the stock.

Other equities analysts have also issued reports about the stock. Needham & Company LLC reaffirmed a “buy” rating and issued a $50.00 target price on shares of Unity Software in a research note on Wednesday. Macquarie Infrastructure raised Unity Software from a “neutral” rating to an “outperform” rating and upped their price objective for the stock from $33.00 to $50.00 in a research report on Friday, November 7th. Arete Research upgraded Unity Software from a “neutral” rating to a “buy” rating and set a $48.00 price objective for the company in a report on Monday, December 1st. Wedbush boosted their target price on Unity Software from $50.00 to $55.00 and gave the company an “outperform” rating in a research note on Tuesday, December 2nd. Finally, Jefferies Financial Group upped their price target on Unity Software from $49.00 to $55.00 and gave the stock a “buy” rating in a research report on Monday, January 5th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $39.29.

Unity Software Price Performance

NYSE U opened at $18.60 on Thursday. The company has a debt-to-equity ratio of 0.52, a quick ratio of 2.78 and a current ratio of 1.84. The stock has a market cap of $8.05 billion, a price-to-earnings ratio of -19.38, a PEG ratio of 17.01 and a beta of 2.04. The business has a 50 day simple moving average of $40.18 and a 200 day simple moving average of $39.63. Unity Software has a 52-week low of $15.33 and a 52-week high of $52.15.

Unity Software (NYSE:U) last released its quarterly earnings results on Wednesday, February 11th. The company reported $0.24 earnings per share for the quarter, beating the consensus estimate 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 company had revenue of $503.09 million during the quarter, compared to analysts’ expectations of $490.64 million. During the same quarter in the prior year, the company earned ($0.30) earnings per share. The business’s quarterly revenue was up 10.1% compared to the same quarter last year. Analysts anticipate that Unity Software will post -1.25 earnings per share for the current fiscal year.

Insider Activity

In other news, Director David Helgason sold 393,312 shares of the firm’s stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $49.64, for a total value of $19,524,007.68. Following the completion of the sale, the director directly owned 5,439,173 shares of the company’s stock, valued at $270,000,547.72. This trade represents a 6.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, COO Alexander Blum sold 1,988 shares of Unity Software stock in a transaction that occurred on Friday, November 28th. The stock was sold at an average price of $42.47, for a total value of $84,430.36. Following the transaction, the chief operating officer owned 561,130 shares of the company’s stock, valued at $23,831,191.10. This represents a 0.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 1,338,021 shares of company stock valued at $63,138,575. 3.61% of the stock is owned by corporate 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. Kestra Advisory Services LLC bought a new position in shares of Unity Software in the fourth quarter valued at about $184,000. The Manufacturers Life Insurance Company grew its stake in Unity Software by 12.1% in the 4th quarter. The Manufacturers Life Insurance Company now owns 97,740 shares of the company’s stock valued at $4,326,000 after buying an additional 10,581 shares during the last quarter. Smartleaf Asset Management LLC lifted its position in Unity Software by 41.7% during the fourth quarter. Smartleaf Asset Management LLC now owns 2,067 shares of the company’s stock worth $93,000 after acquiring an additional 608 shares during the last quarter. Glazer Capital LLC boosted its holdings in shares of Unity Software by 6.8% during the fourth quarter. Glazer Capital LLC now owns 389,800 shares of the company’s stock worth $17,217,000 after acquiring an additional 24,900 shares during the period. Finally, First Trust Advisors LP boosted its holdings in shares of Unity Software by 10.9% during the fourth quarter. First Trust Advisors LP now owns 736,906 shares of the company’s stock worth $32,549,000 after acquiring an additional 72,646 shares during the period. 73.46% of the stock is owned by institutional investors.

More Unity Software News

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.