Unity Software (NYSE:U) Shares Gap Down – Here’s Why

Unity Software Inc. (NYSE:U) shares gapped down prior to trading on Wednesday . The stock had previously closed at $25.87, but opened at $23.70. Unity Software shares last traded at $23.1720, with a volume of 4,956,939 shares.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on U shares. Macquarie raised Unity Software from a “neutral” rating to an “outperform” rating and raised their price objective for the stock from $33.00 to $50.00 in a research note on Friday, November 7th. BTIG Research raised shares of Unity Software from a “neutral” rating to a “buy” rating and set a $60.00 price objective for the company in a research note on Thursday, December 11th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Unity Software in a report on Wednesday, January 21st. Morgan Stanley increased their price target on Unity Software from $48.00 to $52.00 and gave the stock an “overweight” rating in a research note on Tuesday, January 13th. Finally, UBS Group boosted their price objective on Unity Software from $35.00 to $40.00 and gave the company a “neutral” rating in a research report on Monday, October 20th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $45.27.

Unity Software Trading Down 6.7%

The company has a quick ratio of 2.78, a current ratio of 2.78 and a debt-to-equity ratio of 0.70. The stock’s 50 day moving average is $43.39 and its 200-day moving average is $40.24. The company has a market cap of $10.33 billion, a PE ratio of -23.04, a P/E/G ratio of 30.20 and a beta of 2.04.

Unity Software (NYSE:U) last posted its earnings results on Wednesday, November 5th. The company reported $0.20 earnings per share for the quarter, topping analysts’ consensus estimates of $0.17 by $0.03. Unity Software had a negative net margin of 24.15% and a negative return on equity of 9.45%. The firm had revenue of $470.62 million for the quarter, compared to the consensus estimate of $452.87 million. During the same period in the previous year, the firm posted ($0.31) EPS. The business’s quarterly revenue was up 5.4% on a year-over-year basis. As a group, sell-side analysts anticipate that Unity Software Inc. will post -1.25 EPS for the current year.

Insider Activity

In other news, CFO Jarrod Yahes sold 34,719 shares of the business’s stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $41.38, for a total transaction of $1,436,672.22. Following the completion of the sale, the chief financial officer directly owned 573,871 shares of the company’s stock, valued at approximately $23,746,781.98. The trade was a 5.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Tomer Bar-Zeev sold 250,000 shares of the business’s stock in a transaction dated Monday, December 1st. The shares were sold at an average price of $41.93, for a total transaction of $10,482,500.00. Following the completion of the sale, the director directly owned 1,048,146 shares of the company’s stock, valued at approximately $43,948,761.78. This trade represents a 19.26% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 1,397,935 shares of company stock worth $65,679,498. Company insiders own 3.61% of the company’s stock.

Hedge Funds Weigh In On Unity Software

Several institutional investors have recently made changes to their positions in U. GAMMA Investing LLC raised its holdings in shares of Unity Software by 10.8% in the 3rd quarter. GAMMA Investing LLC now owns 2,967 shares of the company’s stock valued at $119,000 after purchasing an additional 288 shares in the last quarter. Newbridge Financial Services Group Inc. raised its position in shares of Unity Software by 12.9% in the 3rd quarter. Newbridge Financial Services Group Inc. now owns 2,696 shares of the company’s stock valued at $108,000 after purchasing an additional 308 shares during the last quarter. Xponance Inc. lifted its stake in shares of Unity Software by 1.8% during the third quarter. Xponance Inc. now owns 18,291 shares of the company’s stock worth $732,000 after buying an additional 328 shares during the period. Larson Financial Group LLC lifted its position in Unity Software by 88.1% during the 3rd quarter. Larson Financial Group LLC now owns 728 shares of the company’s stock worth $29,000 after acquiring an additional 341 shares during the period. Finally, Allworth Financial LP increased its stake in shares of Unity Software by 28.4% in the second quarter. Allworth Financial LP now owns 1,865 shares of the company’s stock worth $45,000 after acquiring an additional 412 shares during the period. Hedge funds and other institutional investors own 73.46% of the company’s stock.

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.