Barclays Issues Pessimistic Forecast for Unity Software (NYSE:U) Stock Price

Unity Software (NYSE:U) had its target price decreased by Barclays from $35.00 to $28.00 in a research note issued on Thursday,Benzinga reports. The firm presently has an “equal weight” rating on the stock. Barclays‘s target price indicates a potential upside of 38.10% from the stock’s current price.

Other research analysts also recently issued research reports about the stock. Piper Sandler raised shares of Unity Software from a “neutral” rating to an “overweight” rating and increased their price objective for the company from $43.00 to $59.00 in a report on Thursday, December 11th. BTIG Research dropped their price target on Unity Software from $60.00 to $41.00 and set a “buy” rating for the company in a research note on Thursday. Jefferies Financial Group lifted their price objective on Unity Software from $49.00 to $55.00 and gave the stock a “buy” rating in a research note on Monday, January 5th. Oppenheimer raised Unity Software from a “market perform” rating to an “outperform” rating and set a $38.00 price objective on the stock in a report on Tuesday. Finally, Wall Street Zen raised shares of 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 assigned a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $40.74.

Unity Software Price Performance

U traded down $1.14 on Thursday, hitting $20.28. 13,671,587 shares of the company’s stock traded hands, compared to its average volume of 18,696,662. Unity Software has a one year low of $15.33 and a one year high of $52.15. The company has a current ratio of 2.78, a quick ratio of 2.78 and a debt-to-equity ratio of 0.70. The firm has a market cap of $8.68 billion, a price-to-earnings ratio of -19.30, a P/E/G ratio of 30.46 and a beta of 2.04. The company’s 50 day simple moving average is $41.22 and its 200-day simple moving average is $39.83.

Unity Software (NYSE:U) last released its quarterly earnings data on Wednesday, February 11th. The company reported $0.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.20 by $0.04. Unity Software had a negative net margin of 24.15% and a negative return on equity of 9.45%. The firm had revenue of $503.09 million for the quarter, compared to analysts’ expectations of $490.64 million. During the same quarter last year, the business posted ($0.30) earnings per share. The company’s revenue for the quarter was up 10.1% compared to the same quarter last year. As a group, research analysts anticipate that Unity Software will post -1.25 EPS for the current year.

Insider Activity

In related news, Director David Helgason sold 393,312 shares of the company’s stock in a transaction dated Thursday, December 11th. The shares were sold at an average price of $49.64, for a total transaction of $19,524,007.68. Following the transaction, the director directly owned 5,439,173 shares in the company, valued at approximately $270,000,547.72. This 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 stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $41.38, for a total transaction of $1,683,876.34. Following the completion of the sale, the chief operating officer directly owned 563,118 shares in the company, valued at $23,301,822.84. This trade represents a 6.74% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 1,338,021 shares of company stock worth $63,138,575 in the last 90 days. Company insiders own 3.61% of the company’s stock.

Hedge Funds Weigh In On Unity Software

A number of institutional investors have recently modified their holdings of U. Root Financial Partners LLC purchased a new stake in shares of Unity Software in the third quarter valued at approximately $27,000. Atlantic Union Bankshares Corp purchased a new position in shares of Unity Software during the second quarter valued at $28,000. REAP Financial Group LLC purchased a new stake in Unity Software in the fourth quarter worth about $28,000. Larson Financial Group LLC grew its holdings 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 in the last quarter. Finally, V Square Quantitative Management LLC bought a new stake in shares of Unity Software in the 4th quarter valued at about $30,000. 73.46% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Unity Software

Here are the key news stories impacting Unity Software this week:

• Positive Sentiment: Q4 beat and operational progress — Unity reported revenue of $503.1M and EPS of $0.24, and management highlighted strong Vector/Create momentum and improving cash generation. BusinessWire: Q4 Results
• Positive Sentiment: Oppenheimer upgraded Unity to Outperform, citing resilience and upside from AI-related products — a vote of confidence from a major shop. Oppenheimer Upgrade
• Positive Sentiment: Needham reaffirmed its Buy rating with a $50 price target, signaling some analysts still see sizable upside vs. current levels. Needham Reaffirmation (Benzinga)
• Neutral Sentiment: UBS cut its price target to $32 and moved to Neutral — a reduction in near-term expectations but not an outright sell call. UBS Lowers Target
• Neutral Sentiment: BTIG trimmed its target from $60 to $41 while keeping a Buy rating — reflects lower near-term forecasts but continued conviction in longer-term upside. BTIG Target Cut
• Neutral Sentiment: Management is intentionally winding down legacy, low‑margin ad business (IronSource) to accelerate migration to Vector (AI-powered products). That strategy can improve long-term margins but creates temporary revenue drag. MarketWatch: AI / Transition
• Negative Sentiment: Guidance miss and demand concerns — Unity’s Q1 revenue guide (480–490M) fell short of Street estimates, triggering a large sell-off on fears of weakening demand. Reuters: Downbeat Forecast
• Negative Sentiment: Market reaction amplified by AI displacement concerns and analyst notes that the near-term revenue hit could last until customers fully migrate — multiple outlets flagged the plunge as driven more by outlook and AI fears than the quarter’s headline beat. Seeking Alpha: Guidance Reaction
• Negative Sentiment: Heavy intraday selling and volatility — coverage notes a ~30% intraday drop and very high trading volume as investors delever and reprice expectations. Yahoo Finance: Shares Drop

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.