The Goldman Sachs Group Issues Pessimistic Forecast for Unity Software (NYSE:U) Stock Price

Unity Software (NYSE:U) had its price target reduced by analysts at The Goldman Sachs Group from $47.00 to $27.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage currently has a “neutral” rating on the stock. The Goldman Sachs Group’s target price suggests a potential upside of 45.15% from the company’s previous close.

Several other analysts have also recently weighed in on the stock. BTIG Research dropped their price objective on shares of Unity Software from $60.00 to $41.00 and set a “buy” rating for the company in a research note on Thursday. Oppenheimer upgraded shares of Unity Software from a “market perform” rating to an “outperform” rating and set a $38.00 price target for the company in a research report on Tuesday. Piper Sandler raised Unity Software from a “neutral” rating to an “overweight” rating and increased their price target for the stock from $43.00 to $59.00 in a research report on Thursday, December 11th. Needham & Company LLC restated a “buy” rating and set a $50.00 price objective on shares of Unity Software in a research note on Wednesday. Finally, Wall Street Zen raised Unity Software from a “hold” rating to a “buy” rating in a report on Saturday, December 6th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $39.29.

Unity Software Stock Performance

NYSE:U opened at $18.60 on Thursday. The stock has a 50 day simple moving average of $40.18 and a 200 day simple moving average of $39.58. The stock has a market cap of $8.05 billion, a P/E ratio of -19.38, a PEG ratio of 17.90 and a beta of 2.04. Unity Software has a 1-year low of $15.33 and a 1-year high of $52.15. The company has a current ratio of 1.84, a quick ratio of 2.78 and a debt-to-equity ratio of 0.52.

Unity Software (NYSE:U) last issued its quarterly earnings data on Wednesday, February 11th. The company reported $0.24 EPS for the quarter, beating analysts’ consensus estimates 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 firm had revenue of $503.09 million for the quarter, compared to analyst estimates of $490.64 million. During the same period in the prior year, the firm posted ($0.30) EPS. The company’s revenue for the quarter was up 10.1% on a year-over-year basis. Research analysts anticipate that Unity Software will post -1.25 earnings per share for the current year.

Insider Buying and Selling

In other news, Director David Helgason sold 393,312 shares of Unity Software stock in a transaction 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 transaction, the director owned 5,439,173 shares in the company, valued at approximately $270,000,547.72. This trade represents a 6.74% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Alexander Blum sold 40,693 shares of the business’s stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $41.38, for a total value of $1,683,876.34. Following the transaction, the chief operating officer directly owned 563,118 shares of the company’s stock, valued at $23,301,822.84. This trade represents a 6.74% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 1,338,021 shares of company stock worth $63,138,575. 3.61% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in U. Jefferies Financial Group Inc. acquired a new stake in shares of Unity Software during the 2nd quarter valued at $205,000. Forum Financial Management LP acquired a new position in Unity Software in the 2nd quarter worth about $256,000. Austin Wealth Management LLC bought a new position in Unity Software in the second quarter valued at about $208,000. PNC Financial Services Group Inc. boosted its stake in shares of Unity Software by 148.2% during the second quarter. PNC Financial Services Group Inc. now owns 22,181 shares of the company’s stock valued at $537,000 after purchasing an additional 13,245 shares in the last quarter. Finally, Broad Peak Investment Advisers Pte Ltd boosted its stake in shares of Unity Software by 43.6% during the third quarter. Broad Peak Investment Advisers Pte Ltd now owns 2,849,437 shares of the company’s stock valued at $114,091,000 after purchasing an additional 865,179 shares in the last quarter. Institutional investors own 73.46% of the company’s stock.

Key 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.