Unity Software (NYSE:U) Shares Gap Up After Analyst Upgrade

Unity Software Inc. (NYSE:U) gapped up before the market opened on Friday after Morgan Stanley raised their price target on the stock from $30.00 to $32.00. The stock had previously closed at $17.13, but opened at $20.23. Morgan Stanley currently has an overweight rating on the stock. Unity Software shares last traded at $18.8120, with a volume of 18,674,807 shares.

Other equities research analysts have also recently issued reports about the stock. Barclays cut their price objective on shares of Unity Software from $35.00 to $28.00 and set an “equal weight” rating for the company in a research report on Thursday, February 12th. The Goldman Sachs Group dropped their price target on shares of Unity Software from $47.00 to $27.00 and set a “neutral” rating for the company in a research note on Thursday, February 12th. 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 report on Tuesday, February 10th. Wall Street Zen upgraded Unity Software from a “hold” rating to a “buy” rating in a report on Saturday, March 14th. Finally, Jefferies Financial Group increased their price objective on Unity Software from $49.00 to $55.00 and gave the stock a “buy” rating in a research report on Monday, January 5th. 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 assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $37.41.

Insider Buying and Selling

In related news, 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 sale, the chief accounting officer owned 383,901 shares in the company, valued at approximately $6,937,091.07. This trade represents a 2.68% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Alexander Blum sold 10,164 shares of the business’s 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 $183,663.48. Following the completion of the sale, the chief operating officer directly owned 550,966 shares in the company, valued at approximately $9,955,955.62. The trade was a 1.81% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 41,684 shares of company stock valued at $773,350. Company insiders own 3.61% of the company’s stock.

Key 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

Hedge Funds Weigh In On Unity Software

Several hedge funds have recently bought and sold shares of the company. Purpose Unlimited Inc. purchased a new position in Unity Software during the 4th quarter valued at about $230,000. Corient Private Wealth LLC grew its position in Unity Software by 63.2% in the 4th quarter. Corient Private Wealth LLC now owns 17,681 shares of the company’s stock valued at $781,000 after acquiring an additional 6,845 shares in the last quarter. Bank of Hawaii purchased a new stake in Unity Software during the fourth quarter worth about $872,000. T. Rowe Price Investment Management Inc. increased its stake in Unity Software by 41.5% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 4,622,445 shares of the company’s stock worth $204,174,000 after purchasing an additional 1,355,847 shares during the period. Finally, Compound Planning Inc. lifted its position in shares of Unity Software by 35.6% during the fourth quarter. Compound Planning Inc. now owns 12,764 shares of the company’s stock worth $564,000 after purchasing an additional 3,354 shares in the last quarter. Institutional investors and hedge funds own 73.46% of the company’s stock.

Unity Software Price Performance

The company’s 50-day moving average price is $24.34 and its 200-day moving average price is $35.74. The company has a quick ratio of 1.84, a current ratio of 1.84 and a debt-to-equity ratio of 0.52. The firm has a market cap of $8.43 billion, a price-to-earnings ratio of -20.28, a PEG ratio of 10.43 and a beta of 2.14.

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. On average, equities research analysts forecast that Unity Software Inc. will post -1.25 EPS for the current year.

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.