Formula Growth Ltd. Buys New Stake in Unity Software Inc. $U

Formula Growth Ltd. purchased a new position in shares of Unity Software Inc. (NYSE:U) during the second quarter, Holdings Channel.com reports. The fund purchased 140,000 shares of the company’s stock, valued at approximately $4,001,000. Unity Software makes up approximately 1.4% of Formula Growth Ltd.’s holdings, making the stock its 15th biggest position.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Newbridge Financial Services Group Inc. increased its holdings in Unity Software by 12.9% in the third quarter. Newbridge Financial Services Group Inc. now owns 2,696 shares of the company’s stock valued at $108,000 after buying an additional 308 shares in the last quarter. Larson Financial Group LLC raised its position in shares of Unity Software by 88.1% in the third 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. Swiss Life Asset Management Ltd boosted its stake in shares of Unity Software by 3.1% during the 4th quarter. Swiss Life Asset Management Ltd now owns 14,861 shares of the company’s stock worth $656,000 after acquiring an additional 449 shares in the last quarter. Captrust Financial Advisors boosted its stake in shares of Unity Software by 2.1% during the 2nd quarter. Captrust Financial Advisors now owns 22,330 shares of the company’s stock worth $540,000 after acquiring an additional 462 shares in the last quarter. Finally, M&T Bank Corp grew its position in shares of Unity Software by 1.9% during the 4th quarter. M&T Bank Corp now owns 25,745 shares of the company’s stock valued at $1,137,000 after acquiring an additional 468 shares during the period. Institutional investors and hedge funds own 73.46% of the company’s stock.

Insider Transactions at Unity Software

In other news, CEO Matthew S. Bromberg sold 16,383 shares of Unity Software stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $45.31, for a total value of $742,313.73. Following the sale, the chief executive officer directly owned 1,541,131 shares of the company’s stock, valued at $69,828,645.61. The trade was a 1.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Alexander Blum sold 1,964 shares of Unity Software stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $44.81, for a total value of $88,006.84. Following the completion of the sale, the chief operating officer directly owned 705,411 shares in the company, valued at $31,609,466.91. This represents a 0.28% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 65,991 shares of company stock valued at $2,989,081 in the last 90 days. Corporate insiders own 0.77% of the company’s stock.

Unity Software Stock Down 1.7%

U stock opened at $43.60 on Friday. The stock has a market capitalization of $19.19 billion, a P/E ratio of -32.06, a P/E/G ratio of 1.94 and a beta of 2.04. The firm has a 50-day simple moving average of $34.85 and a 200-day simple moving average of $27.63. The company has a quick ratio of 2.03, a current ratio of 2.03 and a debt-to-equity ratio of 0.55. Unity Software Inc. has a 52 week low of $16.78 and a 52 week high of $52.15.

Unity Software (NYSE:U) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.28 earnings per share for the quarter, topping the consensus estimate of ($0.11) by $0.39. The firm had revenue of $546.47 million during the quarter, compared to the consensus estimate of $514.72 million. Unity Software had a negative net margin of 28.97% and a positive return on equity of 4.64%. The company’s revenue for the quarter was up 24.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.18 EPS. Equities analysts forecast that Unity Software Inc. will post 0.55 earnings per share for the current fiscal year.

Key Stories Impacting Unity Software

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

• Positive Sentiment: Institutional ownership trends were supportive, with UBS Asset Management, CalPERS, Northwestern Mutual, and Sei Investments increasing their positions. Institutional investors collectively own approximately 73.5% of Unity’s shares.
• Positive Sentiment: Unity’s latest quarterly results remain a fundamental tailwind: revenue rose 24% year over year to $546.5 million, exceeding expectations, while adjusted earnings of $0.28 per share beat the consensus estimate by $0.39. Analysts maintain a “Moderate Buy” consensus, with an average price target of $45.16. Unity Software stock information
• Neutral Sentiment: COO Alexander Blum sold 22,559 shares for approximately $1.02 million across transactions on August 25 and August 27. The sales were executed under a pre-arranged Rule 10b5-1 plan and were intended to cover tax withholding on vested equity awards. Blum still owns more than 705,000 shares.
• Neutral Sentiment: CEO Matthew Bromberg sold 16,383 shares worth about $742,000, while CFO Jarrod Yahes sold 26,017 shares valued at approximately $1.18 million. Both sales also covered tax obligations tied to equity vesting; Bromberg retained over 1.5 million shares and Yahes more than 678,000 shares. Unity Software CEO insider sale
• Negative Sentiment: SVP Rebecca Berenice Boyden sold 1,032 shares for $46,770, also to satisfy tax withholding requirements. Although the individual sale is small, the concentration of sales by senior executives may raise short-term investor caution after Unity’s sharp advance toward its 52-week high.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on U shares. Oppenheimer lifted their price target on Unity Software from $38.00 to $47.00 and gave the company an “outperform” rating in a research note on Friday, August 7th. HSBC upgraded Unity Software from a “hold” rating to a “buy” rating and set a $47.10 price target on the stock in a research report on Friday, August 7th. Citizens Jmp raised their price objective on Unity Software from $37.00 to $45.00 and gave the company a “market outperform” rating in a report on Friday, August 7th. Barclays boosted their price objective on Unity Software from $28.00 to $33.00 and gave the company an “equal weight” rating in a research report on Friday, May 8th. Finally, Citigroup upped their target price on Unity Software from $40.00 to $48.00 and gave the stock a “buy” rating in a research note on Monday, August 10th. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $45.16.

Unity Software 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.