Unity Software (NYSE:U) Sees Large Volume Increase on Better-Than-Expected Earnings

Unity Software Inc. (NYSE:U) saw an uptick in trading volume on Friday after the company announced better than expected quarterly earnings. 14,309,981 shares traded hands during mid-day trading, an increase of 31% from the previous session’s volume of 10,913,663 shares.The stock last traded at $29.00 and had previously closed at $28.00.

The company reported ($0.30) EPS for the quarter, topping the consensus estimate of ($0.35) by $0.05. Unity Software had a negative net margin of 36.63% and a negative return on equity of 13.40%. The firm had revenue of $457.10 million during the quarter, compared to analysts’ expectations of $433.47 million.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the stock. Benchmark raised shares of Unity Software from a “sell” rating to a “hold” rating in a research report on Thursday. Morgan Stanley increased their price target on shares of Unity Software from $26.00 to $32.00 and gave the stock an “overweight” rating in a research note on Friday. Wedbush reiterated an “outperform” rating and issued a $27.00 price target on shares of Unity Software in a research note on Thursday, February 13th. Wells Fargo & Company increased their price target on shares of Unity Software from $20.00 to $27.00 and gave the stock an “equal weight” rating in a research note on Friday. Finally, UBS Group increased their price target on shares of Unity Software from $21.00 to $23.00 and gave the stock a “neutral” rating in a research note on Wednesday, January 22nd. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating, six have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $25.96.

Insider Buying and Selling at Unity Software

In other news, Director Tomer Bar-Zeev sold 250,000 shares of Unity Software stock in a transaction that occurred on Thursday, January 2nd. The shares were sold at an average price of $25.02, for a total value of $6,255,000.00. Following the completion of the sale, the director now directly owns 3,648,146 shares in the company, valued at $91,276,612.92. The trade was a 6.41 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available 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 stock was sold at an average price of $24.39, for a total transaction of $285,826.41. Following the completion of the sale, the senior vice president now owns 411,960 shares of the company’s stock, valued at $10,047,704.40. This represents a 2.77 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 762,597 shares of company stock worth $18,732,374. 6.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Unity Software

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. boosted its holdings in shares of Unity Software by 2.1% in the fourth quarter. Vanguard Group Inc. now owns 31,123,035 shares of the company’s stock worth $699,335,000 after buying an additional 625,872 shares during the last quarter. Capital International Investors boosted its holdings in shares of Unity Software by 10.4% in the fourth quarter. Capital International Investors now owns 18,886,853 shares of the company’s stock worth $424,388,000 after buying an additional 1,786,032 shares during the last quarter. Norges Bank purchased a new position in shares of Unity Software in the fourth quarter worth approximately $269,320,000. Geode Capital Management LLC lifted its holdings in Unity Software by 1.8% during the fourth quarter. Geode Capital Management LLC now owns 4,769,609 shares of the company’s stock valued at $107,208,000 after purchasing an additional 84,480 shares in the last quarter. Finally, Slate Path Capital LP purchased a new position in Unity Software during the fourth quarter valued at approximately $62,387,000. Hedge funds and other institutional investors own 73.46% of the company’s stock.

Unity Software Price Performance

The company has a quick ratio of 2.41, a current ratio of 2.41 and a debt-to-equity ratio of 0.70. The firm has a market cap of $11.41 billion, a PE ratio of -16.85 and a beta of 2.32. The firm’s fifty day simple moving average is $22.53 and its two-hundred day simple moving average is $21.13.

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.