The Goldman Sachs Group Issues Pessimistic Forecast for Unity Software (NYSE:U) Stock Price

Unity Software (NYSE:U) had its price objective cut by research analysts at The Goldman Sachs Group from $47.00 to $27.00 in a report issued on Thursday,Benzinga reports. The brokerage presently has a “neutral” rating on the stock. The Goldman Sachs Group’s target price would indicate a potential upside of 37.42% from the stock’s previous close.

U has been the topic of several other reports. BTIG Research decreased their price objective on shares of Unity Software from $60.00 to $41.00 and set a “buy” rating on the stock in a report on Thursday. Piper Sandler raised shares of Unity Software from a “neutral” rating to an “overweight” rating and lifted their target price for the stock from $43.00 to $59.00 in a report on Thursday, December 11th. Benchmark reiterated a “hold” rating on shares of Unity Software in a research note on Monday, February 2nd. Macquarie Infrastructure upgraded shares of 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 report on Friday, November 7th. Finally, Wells Fargo & Company reduced their price objective on Unity Software from $54.00 to $38.00 and set an “overweight” rating for the company in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $39.74.

Unity Software Stock Down 8.2%

U stock traded down $1.76 during mid-day trading on Thursday, reaching $19.65. The company had a trading volume of 18,036,739 shares, compared to its average volume of 18,905,111. The company has a market capitalization of $8.41 billion, a price-to-earnings ratio of -18.87, a PEG ratio of 30.46 and a beta of 2.04. Unity Software has a 52 week low of $15.33 and a 52 week high of $52.15. The stock has a 50 day simple moving average of $41.22 and a two-hundred day simple moving average of $39.83. The company has a debt-to-equity ratio of 0.70, a current ratio of 2.78 and a quick ratio of 2.78.

Unity Software (NYSE:U) last announced its quarterly earnings results on Wednesday, February 11th. The company reported $0.24 EPS for the quarter, beating analysts’ consensus estimates 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 during the quarter, compared to analysts’ expectations of $490.64 million. During the same quarter last year, the company 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, equities analysts predict that Unity Software will post -1.25 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CFO Jarrod Yahes sold 27,742 shares of the business’s stock in a transaction that occurred on Wednesday, November 26th. The stock was sold at an average price of $42.79, for a total value of $1,187,080.18. Following the completion of the sale, the chief financial officer directly owned 546,129 shares in the company, valued at approximately $23,368,859.91. The trade was a 4.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director David Helgason sold 8,347 shares of the stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $49.16, for a total value of $410,338.52. Following the sale, the director directly owned 7,635 shares in the company, valued at $375,336.60. This represents a 52.23% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 1,338,021 shares of company stock valued at $63,138,575 in the last quarter. Corporate insiders own 3.61% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Unity Software by 5.9% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 813,176 shares of the company’s stock worth $15,930,000 after buying an additional 45,481 shares in the last quarter. Focus Partners Wealth bought a new stake in shares of Unity Software during the 1st quarter worth approximately $260,000. US Bancorp DE boosted its position in shares of Unity Software by 26.4% during the 2nd quarter. US Bancorp DE now owns 33,963 shares of the company’s stock worth $822,000 after acquiring an additional 7,103 shares in the last quarter. Callan Family Office LLC bought a new position in Unity Software in the second quarter valued at approximately $305,000. Finally, Vanguard Personalized Indexing Management LLC raised its position in Unity Software by 9.4% during the second quarter. Vanguard Personalized Indexing Management LLC now owns 34,558 shares of the company’s stock valued at $836,000 after purchasing an additional 2,962 shares in the last quarter. Institutional investors and hedge funds own 73.46% of the company’s stock.

Key Unity Software News

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

• Positive Sentiment: Q4 beat and improving profitability — Unity beat revenue and EPS estimates for Q4 and reported stronger cash generation, supporting the case that its operating model is turning healthier. BusinessWire: Q4 Results
• Positive Sentiment: Vector momentum — Management highlighted Vector’s mid‑teen sequential growth and strong January performance, positioning it as the company’s higher‑margin growth engine over time; this underpins mid/long‑term upside if adoption continues. MarketBeat analysis
• Positive Sentiment: Some analysts remain constructive — a few firms reaffirmed buys or upgraded coverage (e.g., Oppenheimer upgrade, Needham buy/TP) which signals continued conviction among some Wall Street desks. Oppenheimer upgrade
• Neutral Sentiment: Unusually large options activity — heavy call buying was recorded recently, indicating speculative positioning that could amplify intraday moves but not a directional guarantee. (Entry reporting)
• Negative Sentiment: Weak Q1 guidance drove the sell‑off — Unity guided Q1 revenue below consensus ($480M–$490M vs. ~$492M expected), triggering concerns about demand and causing a rapid, high‑volume decline in the stock. Reuters: Downbeat forecast
• Negative Sentiment: Strategic shutdown creates a near‑term revenue hole — management’s decision to wind down the lower‑margin IronSource ad network to accelerate Vector adoption produces a temporary “air pocket” in revenue that markets punished. MarketBeat: Strategic shift
• Negative Sentiment: Analysts cut targets after results — multiple shops trimmed price targets (examples: Citizens Jmp $50→$37, Wedbush $37→$30, Barclays $35→$28, Wells Fargo $54→$38, UBS to $32) reflecting the near‑term uncertainty even as many targets still imply upside vs. the current price. Benzinga: Analyst revisions
• Negative Sentiment: Market panic and volume spike — the stock experienced a very large, rapid sell‑off (near‑term capitulation), which can pressure prices independently of fundamentals and widen intraday moves. MarketBeat: Plunge analysis

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.