Unity Software (NYSE:U) Shares Gap Down on Analyst Downgrade

Unity Software Inc. (NYSE:U)’s stock price gapped down before the market opened on Monday after Wells Fargo & Company lowered their price target on the stock from $27.00 to $22.00. The stock had previously closed at $24.19, but opened at $22.76. Wells Fargo & Company currently has an equal weight rating on the stock. Unity Software shares last traded at $21.80, with a volume of 2,514,524 shares traded.

A number of other analysts have also commented on U. HSBC raised shares of Unity Software from a “hold” rating to a “buy” rating and set a $34.00 price objective on the stock in a research report on Friday, February 21st. UBS Group boosted their target price on shares of Unity Software from $21.00 to $23.00 and gave the company a “neutral” rating in a research report on Wednesday, January 22nd. Barclays lifted their price objective on shares of Unity Software from $18.00 to $26.00 and gave the stock an “equal weight” rating in a research note on Friday, February 21st. Hsbc Global Res raised shares of Unity Software to a “strong-buy” rating in a report on Friday, February 21st. Finally, Needham & Company LLC boosted their price target on Unity Software from $26.00 to $33.00 and gave the company a “buy” rating in a research note on Friday, February 21st. Ten analysts have rated the stock with a hold rating, five have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat.com, Unity Software presently has a consensus rating of “Hold” and a consensus price target of $25.27.

Insiders Place Their Bets

In related news, CFO Mark Barrysmith sold 1,228 shares of the company’s stock in a transaction that occurred on Monday, December 16th. The stock was sold at an average price of $24.44, for a total value of $30,012.32. Following the transaction, the chief financial officer now owns 453,638 shares in the company, valued at approximately $11,086,912.72. This represents a 0.27 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director David Helgason sold 7,860 shares of Unity Software stock in a transaction dated Tuesday, December 10th. The stock was sold at an average price of $26.45, for a total value of $207,897.00. Following the completion of the sale, the director now directly owns 10,493 shares of the company’s stock, valued at approximately $277,539.85. This trade represents a 42.83 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 872,397 shares of company stock worth $21,047,619. Corporate insiders own 6.30% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Soviero Asset Management LP purchased a new position in shares of Unity Software during the 4th quarter valued at about $2,247,000. Sphera Management Technology Funds Ltd purchased a new stake in shares of Unity Software in the 4th quarter valued at $1,128,000. Two Sigma Advisers LP purchased a new position in Unity Software in the 4th quarter worth $494,000. Two Sigma Investments LP purchased a new stake in Unity Software during the 4th quarter valued at about $22,999,000. Finally, Tidal Investments LLC boosted its stake in shares of Unity Software by 32.6% during the fourth quarter. Tidal Investments LLC now owns 20,428 shares of the company’s stock valued at $459,000 after purchasing an additional 5,018 shares during the period. 73.46% of the stock is currently owned by hedge funds and other institutional investors.

Unity Software Stock Down 11.1 %

The company has a current ratio of 2.41, a quick ratio of 2.41 and a debt-to-equity ratio of 0.70. The company has a market capitalization of $8.81 billion, a P/E ratio of -12.80 and a beta of 2.27. The stock’s fifty day moving average is $22.95 and its 200 day moving average is $21.83.

Unity Software (NYSE:U) last issued its quarterly earnings data on Thursday, February 20th. The company reported ($0.30) EPS for the quarter, topping the consensus estimate of ($0.35) by $0.05. Unity Software had a negative net margin of 36.63% and a negative return on equity of 13.40%. The business had revenue of $457.10 million during the quarter, compared to analyst estimates of $433.47 million. Research analysts predict that Unity Software Inc. will post -1.25 EPS for the current fiscal year.

Unity Software Company Profile

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.