Wells Fargo & Company Cuts Unity Software (NYSE:U) Price Target to $38.00

Unity Software (NYSE:U) had its target price decreased by Wells Fargo & Company from $54.00 to $38.00 in a research note released on Thursday morning,Benzinga reports. Wells Fargo & Company currently has an overweight rating on the stock.

Other research analysts have also issued research reports about the company. Morgan Stanley lifted their price target on Unity Software from $48.00 to $52.00 and gave the stock an “overweight” rating in a report on Tuesday, January 13th. Needham & Company LLC reiterated a “buy” rating and issued a $50.00 target price on shares of Unity Software in a report on Wednesday. Arete Research raised shares of Unity Software from a “neutral” rating to a “buy” rating and set a $48.00 price target for the company in a research note on Monday, December 1st. BTIG Research reduced their price target on shares of Unity Software from $60.00 to $41.00 and set a “buy” rating on the stock in a research report on Thursday. Finally, Wedbush increased their price objective on Unity Software from $50.00 to $55.00 and gave the stock an “outperform” rating in a research report on Tuesday, December 2nd. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $39.29.

Unity Software Stock Down 5.3%

U stock opened at $18.60 on Thursday. The company has a current ratio of 1.84, a quick ratio of 2.78 and a debt-to-equity ratio of 0.52. The firm has a 50-day moving average of $40.18 and a two-hundred day moving average of $39.63. Unity Software has a 12 month low of $15.33 and a 12 month high of $52.15. The company has a market cap of $8.05 billion, a price-to-earnings ratio of -19.38, a PEG ratio of 17.01 and a beta of 2.04.

Unity Software (NYSE:U) last posted its quarterly earnings results on Wednesday, February 11th. The company reported $0.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.20 by $0.04. Unity Software had a negative return on equity of 4.76% and a negative net margin of 21.77%.The business had revenue of $503.09 million during the quarter, compared to analyst estimates of $490.64 million. During the same period in the prior year, the business earned ($0.30) earnings per share. The business’s revenue was up 10.1% compared to the same quarter last year. As a group, analysts forecast that Unity Software will post -1.25 earnings per share for the current fiscal year.

Insider Activity at Unity Software

In other news, Director Tomer Bar-Zeev sold 250,000 shares of the firm’s 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 completion of the transaction, the director directly owned 1,048,146 shares in the company, valued at $43,948,761.78. This trade represents a 19.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Matthew S. Bromberg sold 41,025 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 $1,697,614.50. Following the completion of the sale, the chief executive officer owned 1,192,541 shares in the company, valued at $49,347,346.58. This represents a 3.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,338,021 shares of company stock valued at $63,138,575 over the last ninety days. 3.61% of the stock is owned by insiders.

Institutional Trading of Unity Software

A number of large investors have recently modified their holdings of U. Root Financial Partners LLC purchased a new stake in Unity Software during the 3rd quarter worth about $27,000. Atlantic Union Bankshares Corp purchased a new position in Unity Software in the second quarter valued at approximately $28,000. REAP Financial Group LLC acquired a new stake in Unity Software during the fourth quarter worth approximately $28,000. Larson Financial Group LLC lifted its position 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 worth $29,000 after buying an additional 341 shares during the last quarter. Finally, V Square Quantitative Management LLC acquired a new position in shares of Unity Software in the 4th quarter valued at $30,000. Hedge funds and other institutional investors own 73.46% of the company’s stock.

Unity Software News Summary

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

• Positive Sentiment: Q4 beat and improving profitability — Unity reported $503M revenue and beat EPS estimates; management highlighted record-ish free cash flow and margin progress, a direct counterpoint to the sell-off. U’s Q4 Earnings & Revenues Surpass Estimates
• Positive Sentiment: Vector momentum — management and bullish coverage point to strong ad/Vector growth (large January YoY gains and management targeting ~ $1B annualized run-rate by end-2026), which supports medium-term revenue and margin upside. Unity: A Meltdown Worth Buying
• Neutral Sentiment: Analyst responses mixed — many firms cut price targets to reflect near-term headwinds but some maintain Buy/Outperform ratings, leaving a wide spread between market price and some analyst targets. Unity Software Analysts Slash Their Forecasts After Q4 Results
• Neutral Sentiment: Technical/contrarian case — several pieces note the stock is deeply oversold and that the sell-off may have priced in worst-case scenarios, creating a potential buying opportunity for longer-term investors. Down 49% in 4 Weeks, Here’s Why You Should You Buy the Dip
• Negative Sentiment: Weak near-term guidance — management guided Q1 revenue $480–$490M, below consensus, triggering the sharp sell-off as the company intentionally winds down lower-margin legacy ad assets to accelerate migration to Vector. What’s Going On With Unity Stock Friday?
• Negative Sentiment: Market reaction and downgraded sentiment — the guidance miss and strategy pivot prompted steep intraday declines, multiple price-target cuts and at least one analyst downgrade, increasing near-term volatility and downside risk. Unity Software (U) Stock Tumbles 26% After Revenue Forecast Misses Mark

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.