Unity Software (NYSE:U) Price Target Cut to $37.00 by Analysts at Citizens Jmp

Unity Software (NYSE:U) had its price target cut by investment analysts at Citizens Jmp from $50.00 to $37.00 in a report issued on Thursday,Benzinga reports. The brokerage presently has a “market outperform” rating on the stock. Citizens Jmp’s price objective points to a potential upside of 82.49% from the company’s current price.

U has been the subject of a number of other research reports. Morgan Stanley lifted their target price on shares of Unity Software from $48.00 to $52.00 and gave the stock an “overweight” rating in a report on Tuesday, January 13th. Wells Fargo & Company cut their price target on shares of Unity Software from $54.00 to $38.00 and set an “overweight” rating on the stock in a research note on Thursday. Jefferies Financial Group raised their price objective on shares of Unity Software from $49.00 to $55.00 and gave the stock a “buy” rating in a research report on Monday, January 5th. Deutsche Bank Aktiengesellschaft started coverage on shares of Unity Software in a research report on Wednesday, October 22nd. They issued a “hold” rating and a $39.00 price target on the stock. Finally, Piper Sandler upgraded Unity Software from a “neutral” rating to an “overweight” rating and upped their price objective for the company from $43.00 to $59.00 in a research report on Thursday, December 11th. One investment 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 issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $40.74.

Unity Software Trading Down 5.3%

U traded down $1.14 during mid-day trading on Thursday, reaching $20.28. The stock had a trading volume of 13,671,587 shares, compared to its average volume of 18,696,662. The firm’s fifty day simple moving average is $41.22 and its two-hundred day simple moving average is $39.83. The stock has a market capitalization of $8.68 billion, a P/E ratio of -19.30, a P/E/G 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 company has a debt-to-equity ratio of 0.70, a quick ratio of 2.78 and a current ratio of 2.78.

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

Insider Activity

In related 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 value of $1,436,672.22. Following the sale, the chief financial officer owned 573,871 shares in the company, 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 SEC, which is accessible through this hyperlink. Also, Director Tomer Bar-Zeev sold 250,000 shares of Unity Software stock in a transaction on Monday, December 1st. The stock was sold at an average price of $41.93, for a total transaction of $10,482,500.00. Following the transaction, the director directly owned 1,048,146 shares of the company’s stock, valued at $43,948,761.78. The trade was 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 ninety days, insiders sold 1,338,021 shares of company stock worth $63,138,575. 3.61% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Unity Software

Hedge funds have recently modified their holdings of the business. GAMMA Investing LLC grew its position in shares of Unity Software by 10.8% in the third quarter. GAMMA Investing LLC now owns 2,967 shares of the company’s stock valued at $119,000 after purchasing an additional 288 shares during the last quarter. Newbridge Financial Services Group Inc. lifted its position in Unity Software by 12.9% during the third quarter. Newbridge Financial Services Group Inc. now owns 2,696 shares of the company’s stock worth $108,000 after buying an additional 308 shares during the period. Xponance Inc. grew its holdings in Unity Software by 1.8% in the 3rd quarter. Xponance Inc. now owns 18,291 shares of the company’s stock valued at $732,000 after buying an additional 328 shares during the period. Larson Financial Group LLC increased its stake in shares of Unity Software by 88.1% during the 3rd quarter. Larson Financial Group LLC now owns 728 shares of the company’s stock valued at $29,000 after acquiring an additional 341 shares during the last quarter. Finally, Allworth Financial LP lifted its holdings in shares of Unity Software by 28.4% during the 2nd 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. 73.46% of the stock is currently owned by hedge funds and other institutional investors.

Unity Software News Summary

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.