Unity Software (NYSE:U) Shares Up 7.2% – Should You Buy?

Unity Software Inc. (NYSE:U)’s stock price shot up 7.2% on Tuesday . The company traded as high as $23.21 and last traded at $23.32. 2,033,450 shares changed hands during trading, a decline of 79% from the average session volume of 9,554,587 shares. The stock had previously closed at $21.75.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on U shares. Benchmark increased their price target on shares of Unity Software from $10.00 to $15.00 and gave the stock a “sell” rating in a report on Friday, November 8th. Jefferies Financial Group raised their price target on shares of Unity Software from $20.00 to $23.00 and gave the stock a “buy” rating in a report on Monday, January 6th. Oppenheimer reissued a “market perform” rating on shares of Unity Software in a research report on Friday, October 18th. Macquarie boosted their price target on Unity Software from $15.00 to $16.00 and gave the company an “underperform” rating in a report on Friday, November 8th. Finally, Barclays lifted their target price on Unity Software from $16.00 to $18.00 and gave the stock an “equal weight” rating in a report on Friday, November 8th. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and six have given a buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $22.81.

Unity Software Price Performance

The stock has a 50 day simple moving average of $23.56 and a two-hundred day simple moving average of $20.44. The firm has a market cap of $9.28 billion, a PE ratio of -11.29 and a beta of 2.32. The company has a debt-to-equity ratio of 0.70, a quick ratio of 2.41 and a current ratio of 2.41.

Unity Software (NYSE:U) last posted its quarterly earnings data on Thursday, November 7th. The company reported ($0.31) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.39) by $0.08. The company had revenue of $446.52 million during the quarter, compared to analysts’ expectations of $428.01 million. Unity Software had a negative net margin of 40.47% and a negative return on equity of 11.30%. During the same period in the prior year, the business posted ($0.12) earnings per share. Sell-side analysts expect that Unity Software Inc. will post -1.72 earnings per share for the current year.

Insider Activity

In related news, Director Shlomo Dovrat sold 3,750 shares of the stock in a transaction that occurred on Monday, November 18th. The shares were sold at an average price of $17.99, for a total transaction of $67,462.50. Following the completion of the transaction, the director now owns 2,394,935 shares of the company’s stock, valued at approximately $43,084,880.65. This trade represents a 0.16 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Tomer Bar-Zeev sold 250,000 shares of Unity Software stock in a transaction on Friday, November 15th. The shares were sold at an average price of $17.52, for a total value of $4,380,000.00. Following the completion of the sale, the director now directly owns 4,248,146 shares of the company’s stock, valued at $74,427,517.92. The trade was a 5.56 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 764,487 shares of company stock worth $17,521,180 over the last ninety days. Corporate insiders own 6.30% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Geode Capital Management LLC grew its holdings in Unity Software by 9.7% during the 3rd quarter. Geode Capital Management LLC now owns 4,685,129 shares of the company’s stock worth $106,008,000 after acquiring an additional 413,474 shares in the last quarter. Charles Schwab Investment Management Inc. increased its holdings in Unity Software by 100.4% in the third quarter. Charles Schwab Investment Management Inc. now owns 1,886,016 shares of the company’s stock valued at $42,662,000 after buying an additional 944,709 shares during the last quarter. Primecap Management Co. CA raised its stake in Unity Software by 7.1% in the third quarter. Primecap Management Co. CA now owns 811,994 shares of the company’s stock valued at $18,367,000 after buying an additional 53,541 shares in the last quarter. Erste Asset Management GmbH purchased a new stake in Unity Software during the 3rd quarter worth about $12,317,000. Finally, Monolith Management Ltd acquired a new position in shares of Unity Software during the 3rd quarter worth about $10,993,000. Hedge funds and other institutional investors own 73.46% of the company’s stock.

About Unity Software

Unity Software Inc operates a real-time 3D development platform. Its platform provides software solutions to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The company offers its solutions directly through its online store and field sales operations in North America, Denmark, Finland, the United Kingdom, Germany, Japan, China, Singapore, and South Korea, as well as indirectly through independent distributors and resellers worldwide.