Wells Fargo & Company Cuts Unity Software (NYSE:U) Price Target to $29.00

Unity Software (NYSE:U) had its target price reduced by Wells Fargo & Company from $38.00 to $29.00 in a research report sent to investors on Friday morning,Benzinga reports. Wells Fargo & Company currently has an overweight rating on the stock.

U has been the subject of several other reports. Jefferies Financial Group increased their price objective on Unity Software from $49.00 to $55.00 and gave the company a “buy” rating in a research report on Monday, January 5th. Benchmark reiterated a “hold” rating on shares of Unity Software in a research note on Monday, February 2nd. Citigroup reduced their price target on shares of Unity Software from $52.00 to $43.00 and set a “buy” rating for the company in a report on Thursday, February 12th. Bank of America upgraded shares of Unity Software from an “underperform” rating to a “neutral” rating and raised their price target for the stock from $18.00 to $19.00 in a research report on Tuesday, March 3rd. Finally, The Goldman Sachs Group dropped their price objective on shares of Unity Software from $47.00 to $27.00 and set a “neutral” rating on the stock in a report on Thursday, February 12th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $37.41.

Unity Software Stock Up 0.1%

U stock opened at $19.47 on Friday. The stock has a market capitalization of $8.43 billion, a price-to-earnings ratio of -20.28, a price-to-earnings-growth ratio of 10.43 and a beta of 2.15. The company has a 50-day moving average of $24.34 and a two-hundred day moving average of $35.69. 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 current ratio of 1.84 and a quick ratio of 1.84.

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

Insider Buying and Selling

In other Unity Software news, CAO Mark Barrysmith sold 10,578 shares of the company’s stock in a transaction dated Wednesday, February 25th. The shares were sold at an average price of $18.07, for a total transaction of $191,144.46. Following the sale, the chief accounting officer directly owned 383,901 shares of the company’s stock, valued at approximately $6,937,091.07. This represents a 2.68% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Alexander Blum sold 2,541 shares of the firm’s stock in a transaction that occurred on Friday, February 27th. The stock was sold at an average price of $18.76, for a total transaction of $47,669.16. Following the sale, the chief operating officer directly owned 548,425 shares of the company’s stock, valued at approximately $10,288,453. The trade was a 0.46% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 41,684 shares of company stock worth $773,350 in the last quarter. 3.61% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Unity Software

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Unity Software by 5.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 813,176 shares of the company’s stock valued at $15,930,000 after buying an additional 45,481 shares in the last quarter. Focus Partners Wealth bought a new stake in shares of Unity Software during the first quarter valued at approximately $260,000. Envestnet Asset Management Inc. acquired a new stake in shares of Unity Software in the second quarter valued at approximately $238,000. Swiss National Bank increased its holdings in shares of Unity Software by 7.4% in the second quarter. Swiss National Bank now owns 587,000 shares of the company’s stock valued at $14,205,000 after purchasing an additional 40,600 shares in the last quarter. Finally, Legal & General Group Plc raised its position in Unity Software by 34.4% in the 2nd quarter. Legal & General Group Plc now owns 426,816 shares of the company’s stock worth $10,329,000 after purchasing an additional 109,186 shares during the last quarter. 73.46% of the stock is owned by institutional investors and hedge funds.

More Unity Software News

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

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.