Oppenheimer Increases Unity Software (NYSE:U) Price Target to $47.00

Unity Software (NYSE:U) had its price objective hoisted by equities researchers at Oppenheimer from $38.00 to $47.00 in a research note issued on Friday,Benzinga reports. The firm currently has an “outperform” rating on the stock. Oppenheimer’s price objective would indicate a potential upside of 10.68% from the company’s previous close.

U has been the subject of a number of other research reports. Bank of America upgraded Unity Software from a “neutral” rating to a “buy” rating and increased their price objective for the company from $30.00 to $50.00 in a research report on Friday. Zacks Research raised Unity Software from a “hold” rating to a “strong-buy” rating in a research report on Monday, July 13th. Wedbush upped their target price on Unity Software from $32.00 to $36.00 and gave the company an “outperform” rating in a report on Wednesday, July 22nd. Deutsche Bank Aktiengesellschaft upgraded Unity Software from a “hold” rating to a “buy” rating and increased their price target for the company from $31.00 to $50.00 in a research report on Friday. Finally, Wells Fargo & Company lifted their price target on Unity Software from $36.00 to $48.00 and gave the stock an “overweight” rating in a research note on Friday. Two research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Unity Software currently has a consensus rating of “Moderate Buy” and an average target price of $44.22.

Unity Software Price Performance

U stock traded up $1.65 on Friday, hitting $42.46. 7,949,056 shares of the company’s stock traded hands, compared to its average volume of 13,502,098. The stock has a market cap of $18.54 billion, a price-to-earnings ratio of -27.00, a P/E/G ratio of 4.20 and a beta of 2.04. Unity Software has a 1-year low of $16.78 and a 1-year high of $52.15. The company has a current ratio of 1.95, a quick ratio of 1.95 and a debt-to-equity ratio of 0.56. The stock has a fifty day moving average of $29.89 and a 200-day moving average of $26.57.

Insider Activity

In other Unity Software news, CEO Matthew S. Bromberg sold 138,993 shares of the business’s stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $27.18, for a total transaction of $3,777,829.74. Following the sale, the chief executive officer directly owned 1,557,514 shares of the company’s stock, valued at $42,333,230.52. The trade was a 8.19% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Rebecca Berenice Boyden sold 952 shares of the stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $27.20, for a total value of $25,894.40. Following the completion of the sale, the senior vice president owned 309,445 shares of the company’s stock, valued at $8,416,904. The trade was a 0.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 198,321 shares of company stock worth $5,390,783. 0.77% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Unity Software

Several hedge funds have recently bought and sold shares of the business. Wellington Management Group LLP boosted its position in Unity Software by 58.7% during the 3rd quarter. Wellington Management Group LLP now owns 18,213,875 shares of the company’s stock worth $729,284,000 after acquiring an additional 6,734,285 shares during the period. Norges Bank purchased a new position in Unity Software during the fourth quarter valued at approximately $230,285,000. Renaissance Technologies LLC purchased a new stake in Unity Software in the 1st quarter worth approximately $54,534,000. Duquesne Family Office LLC purchased a new stake in shares of Unity Software during the 2nd quarter worth about $42,932,000. Finally, Dimensional Fund Advisors LP boosted its stake in Unity Software by 52.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 4,245,014 shares of the company’s stock valued at $93,089,000 after purchasing an additional 1,465,962 shares during the period. 73.46% of the stock is owned by hedge funds and other institutional investors.

Unity Software News Roundup

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

• Positive Sentiment: Q2 earnings and revenue beat expectations: Unity reported revenue of approximately $546.5 million, up about 24% year over year, and non-GAAP earnings of $0.28 per share. Both figures exceeded Wall Street estimates, with the company also highlighting record free cash flow and a potential shift to GAAP profitability in the third quarter. Unity Reports Upbeat Q2 Results
• Positive Sentiment: Optimistic third-quarter outlook: Unity forecast strategic revenue of $540 million to $550 million, above the roughly $533.8 million consensus estimate, alongside a projected 33% adjusted EBITDA margin. Management attributed momentum partly to its Vector and Grow solutions. Unity Q3 Forecast
• Positive Sentiment: Broad analyst support: Wells Fargo raised its price target to $48 and assigned an overweight rating; Needham lifted its target to $54 with a buy rating; and Bank of America, Deutsche Bank, BTIG, Benchmark and HSBC all upgraded Unity or raised their targets. The revisions signal greater confidence in Unity’s execution, growth and margin outlook. Analysts Raise Unity Forecasts
• Neutral Sentiment: Options activity increased: Investors bought 41,488 Unity call options, about 30% above typical daily volume. This may reflect bullish positioning, though options activity alone does not establish a lasting change in fundamentals.
• Negative Sentiment: Profitability risks remain: Unity continues to report a negative net margin, and its valuation and volatility are elevated following the rally. The stock’s performance will likely depend on whether the company can sustain Vector-driven growth and deliver the projected improvement to GAAP profitability.

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.