Unity Software (NYSE:U) Downgraded by Zacks Research to “Hold”

Zacks Research downgraded shares of Unity Software (NYSE:U) from a strong-buy rating to a hold rating in a research report released on Tuesday morning,Zacks reports.

U has been the topic of a number of other reports. Piper Sandler reissued an “overweight” rating on shares of Unity Software in a report on Monday. Oppenheimer lifted their price target on Unity Software from $38.00 to $47.00 and gave the stock an “outperform” rating in a research note on Friday, August 7th. Bank of America upgraded Unity Software from a “neutral” rating to a “buy” rating and boosted their price target for the stock from $30.00 to $50.00 in a research report on Friday, August 7th. Wall Street Zen downgraded Unity Software from a “buy” rating to a “hold” rating in a research note on Sunday. Finally, Wedbush raised their price objective on Unity Software from $32.00 to $36.00 and gave the company an “outperform” rating in a report on Wednesday, July 22nd. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $45.16.

Unity Software Stock Performance

Shares of NYSE U opened at $45.51 on Tuesday. The company has a current ratio of 2.03, a quick ratio of 2.03 and a debt-to-equity ratio of 0.55. Unity Software has a 12 month low of $16.78 and a 12 month high of $52.15. The company has a 50 day simple moving average of $42.41 and a two-hundred day simple moving average of $32.23. The stock has a market cap of $20.03 billion, a price-to-earnings ratio of -33.46, a PEG ratio of 1.97 and a beta of 2.11.

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

Insider Transactions at Unity Software

In other Unity Software news, COO Alexander Blum sold 43,556 shares of the firm’s stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $43.51, for a total value of $1,895,121.56. Following the completion of the transaction, the chief operating officer owned 661,855 shares of the company’s stock, valued at $28,797,311.05. This trade represents a 6.17% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew S. Bromberg sold 16,383 shares of Unity Software stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $45.31, for a total value of $742,313.73. Following the completion of the transaction, the chief executive officer owned 1,541,131 shares of the company’s stock, valued at approximately $69,828,645.61. This trade represents a 1.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 109,547 shares of company stock worth $4,884,202 in the last 90 days. Insiders own 0.77% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Atreides Management LP acquired a new stake in shares of Unity Software in the 2nd quarter valued at $292,826,000. Resolute Advisors LLC grew its stake in shares of Unity Software by 473.3% during the second quarter. Resolute Advisors LLC now owns 4,766,219 shares of the company’s stock worth $136,219,000 after purchasing an additional 3,934,840 shares in the last quarter. Dimensional Fund Advisors LP increased its holdings in Unity Software by 52.8% in the first quarter. Dimensional Fund Advisors LP now owns 4,245,014 shares of the company’s stock valued at $93,089,000 after buying an additional 1,465,962 shares during the last quarter. Amundi increased its holdings in Unity Software by 4.7% in the second quarter. Amundi now owns 2,334,695 shares of the company’s stock valued at $66,726,000 after buying an additional 105,268 shares during the last quarter. Finally, Avala Global LP acquired a new stake in Unity Software in the second quarter valued at $62,522,000. Hedge funds and other institutional investors own 73.46% of the company’s stock.

Trending Headlines about Unity Software

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

• Positive Sentiment: Google partnership expands Unity’s growth opportunity. The planned platform, initially called Playground, will allow users to create playable games through natural-language prompts without coding. Google Play Games integration could provide multiplayer, matchmaking, leaderboards and distribution, potentially bringing millions of new creators into Unity’s ecosystem. Google and Unity Team to Let Users Build Their Own Games
• Positive Sentiment: Unity Spark could create a path to higher-value customers. Unity CEO Matthew Bromberg said the company ultimately wants the technology to reach consoles and emphasized a focus on quality rather than low-value “AI slop.” Unity Spark, expected later this year, is intended to extend the platform from simple prompt-based creation toward more sophisticated 3D development, potentially funneling hobbyists into Unity’s professional tools. Unity CEO Wants Google AI Gaming Platform To Reach Consoles
• Positive Sentiment: Investors see potential margin benefits. Google supplies AI models and infrastructure, allowing Unity to pursue generative-AI growth without bearing the full cost of building large-scale computing capacity. The announcement also strengthens Unity’s competitive position against creator platforms such as Roblox, while recent quarterly results showed revenue growth and an earnings beat. Unity earnings information
• Neutral Sentiment: Analyst support remains favorable but offers limited new information. Citi reaffirmed its Buy rating, while broader coverage continues to focus on whether Unity can convert AI-driven user growth into recurring revenue and sustained profitability. Citi Reaffirms Their Buy Rating on Unity Software
• Negative Sentiment: Execution and valuation risks remain. The platform is still under development, and investor enthusiasm could fade if launches are delayed, user adoption is weak or AI-generated content fails to meet quality expectations. Unity also remains valued at a high earnings multiple while its trailing net income is negative, increasing sensitivity to disappointing results.

Unity Software Company Profile

Unity Software Inc develops software and services for creating, operating and monetizing interactive, real-time 2D and 3D content. Its platform is widely used to build video games for mobile devices, personal computers, consoles and the web, as well as applications for industries such as automotive, architecture, engineering, construction, manufacturing and entertainment.

The company’s core offering is the Unity development platform, which includes tools for graphics, physics, animation, audio, scripting and cross-platform deployment.