Unity Software (NYSE:U) Downgraded to “Hold” Rating by Wall Street Zen

Unity Software (NYSE:U) was downgraded by equities researchers at Wall Street Zen from a “buy” rating to a “hold” rating in a report issued on Saturday.

Other research analysts also recently issued research reports about the stock. Morgan Stanley lifted their price target on shares of Unity Software from $30.00 to $32.00 and gave the stock an “overweight” rating in a research note on Friday. Oppenheimer raised Unity Software from a “market perform” rating to an “outperform” rating and set a $38.00 price objective for the company in a research report on Tuesday, February 10th. Wells Fargo & Company decreased their target price on Unity Software from $38.00 to $29.00 and set an “overweight” rating for the company in a research note on Friday. Benchmark reaffirmed a “hold” rating on shares of Unity Software in a report on Monday, February 2nd. Finally, Needham & Company LLC restated a “buy” rating and issued a $35.00 target price on shares of Unity Software in a report on Friday. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $37.41.

Unity Software Stock Up 13.7%

Shares of U opened at $19.47 on Friday. The stock has a market capitalization of $8.43 billion, a PE ratio of -20.28, a P/E/G ratio of 9.19 and a beta of 2.14. Unity Software has a 1 year low of $15.33 and a 1 year high of $52.15. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.84 and a current ratio of 1.84. The company’s 50-day simple moving average is $24.34 and its 200-day simple moving average is $35.81.

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

Insiders Place Their Bets

In other Unity Software news, CFO Jarrod Yahes sold 6,205 shares of the stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $21.03, for a total transaction of $130,491.15. Following the completion of the sale, the chief financial officer directly owned 728,381 shares of the company’s stock, valued at approximately $15,317,852.43. This trade represents a 0.84% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Mark Barrysmith sold 10,578 shares of Unity Software stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $18.07, for a total value of $191,144.46. Following the completion of the transaction, the chief accounting officer owned 383,901 shares in the company, valued at $6,937,091.07. This trade represents a 2.68% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 41,684 shares of company stock valued at $773,350. 3.61% of the stock is owned by company insiders.

Hedge Funds Weigh In On Unity Software

Several institutional investors have recently bought and sold shares of U. Root Financial Partners LLC acquired a new stake in shares of Unity Software in the 3rd quarter worth $27,000. REAP Financial Group LLC acquired a new stake in shares of Unity Software in the 4th quarter worth approximately $28,000. Larson Financial Group LLC increased its stake in Unity Software by 88.1% in the 3rd quarter. Larson Financial Group LLC now owns 728 shares of the company’s stock valued at $29,000 after purchasing an additional 341 shares in the last quarter. V Square Quantitative Management LLC acquired a new stake in Unity Software in the 4th quarter valued at about $30,000. Finally, IFP Advisors Inc purchased a new position in Unity Software during the 3rd quarter valued at about $33,000. 73.46% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Unity Software

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

• Positive Sentiment: Preliminary Q1 beat — Unity said preliminary revenue of $505M–$508M (vs. prior guidance $480M–$490M) and Adjusted EBITDA $130M–$135M (vs. $105M–$110M); management cited Unity V as a driver and flagged a plan to exit non‑strategic ad units to boost growth/profitability. Business Wire: Preliminary Results
• Positive Sentiment: Market reaction & company update — Coverage notes the upbeat preview and strategic shake‑up as the immediate reason for the rally. Investors are treating the combination of better-than-expected Q1 metrics and a streamlined business mix as meaningful de‑risking. Proactive Investors: Shares Jump After Upbeat Preliminary Results
• Positive Sentiment: Analyst support — Multiple firms reiterated/raised ratings and targets (e.g., Morgan Stanley raised its price target to $32 and set an “overweight” rating; Citizens/JMP reaffirmed a $37 Market Outperform). Those actions lend credibility to the rebound thesis and support buying interest. Benzinga: Analyst Actions
• Positive Sentiment: Heavy call buying — Unusually large options activity: ~57,327 call contracts traded (≈15% above typical daily call volume), consistent with directional bullish speculation or hedged positions ahead of the print. (No link)
• Positive Sentiment: China sale speculation — Reports that China asset sale talk has intensified are fueling M&A speculation, which can attract event‑driven buyers and bid up the stock while details remain unresolved. 247wallst: China Sale Talk
• Neutral Sentiment: Guidance/preview coverage — Several outlets are highlighting the company’s updated Q1 outlook and strategic changes; that coverage increases visibility but outcomes depend on the formal earnings release and management commentary. Benzinga: What’s Behind The Jump
• Negative Sentiment: Competitive / adtech skepticism — Comparative analyses argue rival Digital Turbine may have the edge in adtech metrics (ODS/AGP growth) and point to lingering weaknesses in parts of Unity’s ad platform, which could cap upside if execution stalls. Zacks: APPS vs U AdTech Comparison
• Negative Sentiment: Mixed analyst moves — Some firms trimmed price targets (e.g., Wells Fargo lowered its target from $38 to $29 despite keeping an “overweight” call), reflecting ongoing model risk and differing views on longer‑term monetization — a reminder the recovery isn’t unanimous. Benzinga: Analyst Notes

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.