Unity Software’s (U) “Buy” Rating Reiterated at Needham & Company LLC

Needham & Company LLC reiterated their buy rating on shares of Unity Software (NYSE:U) in a report published on Friday,Benzinga reports. The firm currently has a $35.00 price objective on the stock.

Several other analysts have also issued reports on the company. Weiss Ratings reissued a “sell (d-)” rating on shares of Unity Software in a report on Wednesday, January 21st. Morgan Stanley boosted their price target on Unity Software from $48.00 to $52.00 and gave the company an “overweight” rating in a research note on Tuesday, January 13th. Freedom Capital raised shares of Unity Software to a “strong-buy” rating in a research report on Thursday, January 15th. Piper Sandler upgraded shares of Unity Software from a “neutral” rating to an “overweight” rating and increased their price objective for the stock from $43.00 to $59.00 in a research note on Thursday, December 11th. Finally, Citizens Jmp decreased their target price on shares of Unity Software from $50.00 to $37.00 and set a “market outperform” rating on the stock in a report on Thursday, February 12th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Unity Software presently has an average rating of “Moderate Buy” and a consensus target price of $37.41.

Unity Software Price Performance

NYSE:U opened at $19.47 on Friday. Unity Software has a 52 week low of $15.33 and a 52 week 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 firm’s 50-day simple moving average is $24.34 and its 200 day simple moving average is $35.69. The firm has a market cap of $8.43 billion, a price-to-earnings ratio of -20.28, a P/E/G ratio of 10.43 and a beta of 2.15.

Unity Software (NYSE:U) last posted its quarterly earnings data on Wednesday, February 11th. The company reported $0.24 earnings per share (EPS) 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 the consensus estimate of $490.64 million. During the same quarter in the previous year, the firm posted ($0.30) EPS. The business’s revenue for the quarter was up 10.1% compared to the same quarter last year. As a group, sell-side analysts predict that Unity Software will post -1.25 earnings per share for the current year.

Insider Buying and Selling at Unity Software

In other news, CAO Mark Barrysmith sold 10,578 shares of Unity Software stock in a transaction on Wednesday, February 25th. The shares were sold at an average price of $18.07, for a total transaction of $191,144.46. Following the transaction, the chief accounting officer owned 383,901 shares in the company, valued at approximately $6,937,091.07. The trade was a 2.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Jarrod Yahes sold 12,196 shares of the business’s stock in a transaction on Wednesday, February 25th. The stock was sold at an average price of $18.07, for a total transaction of $220,381.72. Following the completion of the sale, the chief financial officer directly owned 533,933 shares in the company, valued at approximately $9,648,169.31. This represents a 2.23% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 41,684 shares of company stock worth $773,350. 3.61% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Unity Software

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Vanguard Group Inc. increased its position in Unity Software by 2.9% during the 4th quarter. Vanguard Group Inc. now owns 35,553,296 shares of the company’s stock valued at $1,570,389,000 after purchasing an additional 996,685 shares during the period. Slate Path Capital LP raised its holdings in Unity Software by 25.4% during the 2nd quarter. Slate Path Capital LP now owns 20,016,952 shares of the company’s stock worth $484,410,000 after purchasing an additional 4,048,484 shares during the last quarter. Wellington Management Group LLP lifted its position in shares of Unity Software by 58.7% in the 3rd quarter. Wellington Management Group LLP now owns 18,213,875 shares of the company’s stock worth $729,284,000 after purchasing an additional 6,734,285 shares during the period. Norges Bank bought a new stake in shares of Unity Software in the 2nd quarter valued at $151,221,000. Finally, Geode Capital Management LLC boosted its stake in shares of Unity Software by 5.9% in the 4th quarter. Geode Capital Management LLC now owns 5,852,047 shares of the company’s stock valued at $258,547,000 after purchasing an additional 328,595 shares during the last quarter. 73.46% of the stock is owned by institutional investors and hedge funds.

Key Stories 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.