Unity Software Inc. (NYSE:U) Receives Average Recommendation of “Moderate Buy” from Brokerages

Shares of Unity Software Inc. (NYSE:U) have been assigned an average recommendation of “Moderate Buy” from the twenty-four analysts that are covering the firm, MarketBeat.com reports. Two equities research analysts have rated the stock with a sell recommendation, seven have assigned a hold recommendation, fourteen have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month price target among brokerages that have issued ratings on the stock in the last year is $39.29.

U has been the subject of several research reports. Macquarie Infrastructure upgraded Unity Software from a “neutral” rating to an “outperform” rating and lifted their price objective for the stock from $33.00 to $50.00 in a research report on Friday, November 7th. Wall Street Zen raised Unity Software from a “hold” rating to a “buy” rating in a report on Saturday, December 6th. The Goldman Sachs Group reduced their price objective on Unity Software from $47.00 to $27.00 and set a “neutral” rating on the stock in a research report on Thursday. Morgan Stanley increased their price objective on Unity Software from $48.00 to $52.00 and gave the company an “overweight” rating in a research note on Tuesday, January 13th. Finally, Freedom Capital raised shares of Unity Software to a “strong-buy” rating in a research note on Thursday, January 15th.

Unity Software Price Performance

Shares of NYSE U opened at $18.60 on Friday. The company has a current ratio of 1.84, a quick ratio of 2.78 and a debt-to-equity ratio of 0.52. The company’s 50-day moving average price is $40.18 and its 200 day moving average price is $39.58. Unity Software has a 52 week low of $15.33 and a 52 week high of $52.15. The stock has a market cap of $8.05 billion, a price-to-earnings ratio of -19.38, a PEG ratio of 17.90 and a beta of 2.04.

Unity Software (NYSE:U) last announced its earnings results on Wednesday, February 11th. The company reported $0.24 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.20 by $0.04. The company had revenue of $503.09 million during the quarter, compared to analysts’ expectations 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 quarterly revenue was up 10.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($0.30) earnings per share. As a group, research analysts forecast that Unity Software will post -1.25 earnings per share for the current fiscal year.

Insider Buying and Selling at Unity Software

In related news, Director Tomer Bar-Zeev sold 50,000 shares of the firm’s stock in a transaction that occurred on Friday, December 12th. The shares were sold at an average price of $47.00, for a total transaction of $2,350,000.00. Following the sale, the director owned 873,146 shares in the company, valued at approximately $41,037,862. This trade represents a 5.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 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 transaction of $84,430.36. Following the completion of the sale, the chief operating officer directly owned 561,130 shares of the company’s stock, valued at $23,831,191.10. The trade was a 0.35% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 1,338,021 shares of company stock valued at $63,138,575. Corporate insiders own 3.61% of the company’s stock.

Institutional Investors Weigh In On Unity Software

Hedge funds have recently made changes to their positions in the business. Kestra Advisory Services LLC purchased a new stake in shares of Unity Software in the fourth quarter valued at $184,000. The Manufacturers Life Insurance Company lifted its position in Unity Software by 12.1% during the fourth quarter. The Manufacturers Life Insurance Company now owns 97,740 shares of the company’s stock worth $4,326,000 after buying an additional 10,581 shares during the period. Smartleaf Asset Management LLC boosted its stake in Unity Software by 41.7% in the 4th quarter. Smartleaf Asset Management LLC now owns 2,067 shares of the company’s stock worth $93,000 after buying an additional 608 shares during the last quarter. Glazer Capital LLC grew its holdings in Unity Software by 6.8% in the 4th quarter. Glazer Capital LLC now owns 389,800 shares of the company’s stock valued at $17,217,000 after buying an additional 24,900 shares during the period. Finally, First Trust Advisors LP grew its holdings in Unity Software by 10.9% in the 4th quarter. First Trust Advisors LP now owns 736,906 shares of the company’s stock valued at $32,549,000 after buying an additional 72,646 shares during the period. Institutional investors and hedge funds own 73.46% of the company’s stock.

Key Stories Impacting Unity Software

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

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.