Unity Software (NYSE:U) Shares Gap Up After Better-Than-Expected Earnings

Unity Software Inc. (NYSE:U)’s share price gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $21.47, but opened at $24.68. Unity Software shares last traded at $25.69, with a volume of 20,712,355 shares.

The company reported ($0.30) EPS for the quarter, beating the consensus estimate of ($0.35) by $0.05. Unity Software had a negative return on equity of 11.30% and a negative net margin of 40.47%. The company had revenue of $457.10 million for the quarter, compared to analysts’ expectations of $433.47 million.

Analyst Ratings Changes

U has been the topic of a number of recent research reports. UBS Group increased their target price on Unity Software from $21.00 to $23.00 and gave the company a “neutral” rating in a report on Wednesday, January 22nd. Barclays increased their target price on Unity Software from $18.00 to $26.00 and gave the company an “equal weight” rating in a report on Friday. Wells Fargo & Company increased their target price on Unity Software from $20.00 to $27.00 and gave the company an “equal weight” rating in a report on Friday. Needham & Company LLC increased their target price on Unity Software from $26.00 to $33.00 and gave the company a “buy” rating in a report on Friday. Finally, Jefferies Financial Group increased their target price on Unity Software from $23.00 to $28.00 and gave the company a “hold” rating in a report on Friday. One research analyst has rated the stock with a sell rating, nine have issued a hold rating and six have given a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $25.96.

Insider Transactions at Unity Software

In related news, CFO Mark Barrysmith sold 8,112 shares of Unity Software stock in a transaction that occurred on Monday, November 25th. The stock was sold at an average price of $24.38, for a total transaction of $197,770.56. Following the sale, the chief financial officer now owns 454,866 shares of the company’s stock, valued at approximately $11,089,633.08. This trade represents a 1.75 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Felix The sold 11,719 shares of Unity Software stock in a transaction that occurred on Monday, November 25th. The shares were sold at an average price of $24.39, for a total value of $285,826.41. Following the sale, the senior vice president now directly owns 411,960 shares in the company, valued at $10,047,704.40. This trade represents a 2.77 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 762,597 shares of company stock valued at $18,732,374 over the last quarter. 6.30% of the stock is currently owned by company insiders.

Institutional Trading of Unity Software

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. GAMMA Investing LLC grew its holdings in Unity Software by 33.6% during the 4th quarter. GAMMA Investing LLC now owns 1,636 shares of the company’s stock valued at $37,000 after buying an additional 411 shares in the last quarter. Principal Securities Inc. grew its holdings in Unity Software by 50.5% during the 4th quarter. Principal Securities Inc. now owns 1,422 shares of the company’s stock valued at $32,000 after buying an additional 477 shares in the last quarter. Farther Finance Advisors LLC grew its holdings in Unity Software by 3.5% during the 4th quarter. Farther Finance Advisors LLC now owns 14,435 shares of the company’s stock valued at $324,000 after buying an additional 488 shares in the last quarter. Tidal Investments LLC grew its holdings in Unity Software by 4.9% during the 3rd quarter. Tidal Investments LLC now owns 15,410 shares of the company’s stock valued at $349,000 after buying an additional 723 shares in the last quarter. Finally, Venturi Wealth Management LLC grew its holdings in Unity Software by 28.7% during the 3rd quarter. Venturi Wealth Management LLC now owns 3,923 shares of the company’s stock valued at $89,000 after buying an additional 876 shares in the last quarter. Institutional investors own 73.46% of the company’s stock.

Unity Software Price Performance

The firm has a market cap of $11.41 billion, a PE ratio of -13.88 and a beta of 2.32. The company has a debt-to-equity ratio of 0.70, a quick ratio of 2.41 and a current ratio of 2.41. The firm has a fifty day simple moving average of $22.53 and a two-hundred day simple moving average of $21.08.

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.