Unity Software (NYSE:U) Trading Up 8.6% After Earnings Beat

Unity Software Inc. (NYSE:U) shares were up 8.6% during mid-day trading on Friday following a better than expected earnings announcement. The stock traded as high as $16.11 and last traded at $15.60. Approximately 3,410,208 shares traded hands during mid-day trading, a decline of 64% from the average daily volume of 9,571,104 shares. The stock had previously closed at $14.36.

The company reported ($0.32) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.44) by $0.12. The firm had revenue of $449.30 million during the quarter, compared to analysts’ expectations of $438.37 million. Unity Software had a negative net margin of 40.11% and a negative return on equity of 7.73%. The firm’s revenue for the quarter was down 15.8% on a year-over-year basis. During the same period in the prior year, the company posted ($0.26) earnings per share.

Analysts Set New Price Targets

Several research firms recently issued reports on U. Piper Sandler reissued a “neutral” rating and set a $17.00 price target (down from $25.00) on shares of Unity Software in a report on Friday. Wedbush reissued an “outperform” rating and set a $33.50 price target on shares of Unity Software in a report on Monday, July 29th. Benchmark restated a “sell” rating and set a $16.00 target price on shares of Unity Software in a research report on Friday, May 10th. Needham & Company LLC restated a “buy” rating and set a $31.00 target price on shares of Unity Software in a research report on Friday, May 10th. Finally, Stifel Nicolaus lowered their target price on shares of Unity Software from $25.00 to $20.00 and set a “buy” rating on the stock in a research report on Friday. Two research analysts have rated the stock with a sell rating, eleven have given a hold rating and seven have given a buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $28.75.

Insider Activity

In other news, insider Marc Whitten sold 31,466 shares of the stock in a transaction that occurred on Tuesday, May 28th. The shares were sold at an average price of $19.10, for a total value of $601,000.60. Following the sale, the insider now directly owns 958,241 shares in the company, valued at $18,302,403.10. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, CMO Carol W. Carpenter sold 18,775 shares of the firm’s stock in a transaction that occurred on Tuesday, May 28th. The shares were sold at an average price of $19.10, for a total transaction of $358,602.50. Following the sale, the chief marketing officer now owns 423,842 shares in the company, valued at $8,095,382.20. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Marc Whitten sold 31,466 shares of the firm’s stock in a transaction that occurred on Tuesday, May 28th. The stock was sold at an average price of $19.10, for a total transaction of $601,000.60. Following the sale, the insider now owns 958,241 shares in the company, valued at approximately $18,302,403.10. The disclosure for this sale can be found here. Insiders have sold 245,005 shares of company stock worth $4,798,048 over the last ninety days. 6.30% of the stock is currently owned by insiders.

Institutional Trading of Unity Software

A number of hedge funds have recently bought and sold shares of U. Capital Research Global Investors raised its stake in Unity Software by 510.2% during the fourth quarter. Capital Research Global Investors now owns 7,181,661 shares of the company’s stock worth $293,658,000 after purchasing an additional 6,004,655 shares during the period. Janney Montgomery Scott LLC raised its stake in Unity Software by 26.9% during the fourth quarter. Janney Montgomery Scott LLC now owns 35,336 shares of the company’s stock worth $1,445,000 after purchasing an additional 7,484 shares during the period. Susquehanna Fundamental Investments LLC purchased a new position in Unity Software during the first quarter worth approximately $3,878,000. Seldon Capital LP purchased a new position in Unity Software during the fourth quarter worth approximately $7,576,000. Finally, Vanguard Group Inc. raised its stake in Unity Software by 0.8% during the first quarter. Vanguard Group Inc. now owns 26,336,775 shares of the company’s stock worth $703,192,000 after purchasing an additional 208,566 shares during the period. Institutional investors and hedge funds own 73.46% of the company’s stock.

Unity Software Stock Performance

The company has a quick ratio of 2.15, a current ratio of 2.15 and a debt-to-equity ratio of 0.70. The company has a market cap of $6.29 billion, a PE ratio of -6.89 and a beta of 2.25. The stock’s 50 day simple moving average is $16.38 and its two-hundred day simple moving average is $23.33.

Unity Software Company Profile

Unity Software Inc operates a real-time 3D development platform. Its platform provides software solutions to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The company offers its solutions directly through its online store and field sales operations in North America, Denmark, Finland, the United Kingdom, Germany, Japan, China, Singapore, and South Korea, as well as indirectly through independent distributors and resellers worldwide.