Unity Software (NYSE:U) Shares Gap Down Following Analyst Downgrade

Unity Software Inc. (NYSE:U) gapped down before the market opened on Monday after Wells Fargo & Company lowered their price target on the stock from $27.00 to $22.00. The stock had previously closed at $24.19, but opened at $22.76. Wells Fargo & Company currently has an equal weight rating on the stock. Unity Software shares last traded at $21.80, with a volume of 2,514,524 shares changing hands.

Other research analysts have also issued research reports about the company. Jefferies Financial Group raised their price objective on Unity Software from $23.00 to $28.00 and gave the company a “hold” rating in a research report on Friday, February 21st. Benchmark upgraded Unity Software from a “sell” rating to a “hold” rating in a report on Thursday, February 20th. 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. HSBC upgraded shares of Unity Software from a “hold” rating to a “buy” rating and set a $34.00 price objective for the company in a research note on Friday, February 21st. Finally, Morgan Stanley lifted their target price on shares of Unity Software from $26.00 to $32.00 and gave the stock an “overweight” rating in a report on Friday, February 21st. Ten equities research analysts have rated the stock with a hold rating, five have issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $25.27.

Insiders Place Their Bets

In other Unity Software news, Director David Helgason sold 38,924 shares of the company’s stock in a transaction that occurred on Wednesday, February 26th. The shares were sold at an average price of $26.92, for a total transaction of $1,047,834.08. Following the completion of the sale, the director now directly owns 7,828,494 shares of the company’s stock, valued at approximately $210,743,058.48. This represents a 0.49 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Tomer Bar-Zeev sold 236,337 shares of the stock in a transaction that occurred on Tuesday, March 4th. The stock was sold at an average price of $23.92, for a total transaction of $5,653,181.04. Following the completion of the transaction, the director now owns 3,161,809 shares in the company, valued at $75,630,471.28. The trade was a 6.95 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 864,537 shares of company stock valued at $20,839,722. Company insiders own 6.30% of the company’s stock.

Institutional Investors Weigh In On Unity Software

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Ariose Capital Management Ltd purchased a new position in Unity Software during the fourth quarter valued at $2,299,000. Charles Schwab Investment Management Inc. raised its stake in shares of Unity Software by 100.4% in the third quarter. Charles Schwab Investment Management Inc. now owns 1,886,016 shares of the company’s stock worth $42,662,000 after buying an additional 944,709 shares during the period. CIBC Asset Management Inc lifted its position in shares of Unity Software by 2,665.4% during the 3rd quarter. CIBC Asset Management Inc now owns 342,472 shares of the company’s stock valued at $7,747,000 after buying an additional 330,088 shares in the last quarter. LMR Partners LLP purchased a new position in shares of Unity Software during the 3rd quarter valued at about $611,000. Finally, Edgestream Partners L.P. grew its stake in shares of Unity Software by 637.9% during the 3rd quarter. Edgestream Partners L.P. now owns 102,899 shares of the company’s stock valued at $2,328,000 after acquiring an additional 88,955 shares during the period. 73.46% of the stock is currently owned by hedge funds and other institutional investors.

Unity Software Stock Down 10.8 %

The company has a market capitalization of $8.84 billion, a PE ratio of -12.84 and a beta of 2.27. The company’s fifty day moving average is $22.93 and its 200-day moving average is $21.86. The company has a debt-to-equity ratio of 0.70, a quick ratio of 2.41 and a current ratio of 2.41.

Unity Software (NYSE:U) last announced its quarterly earnings data on Thursday, February 20th. The company reported ($0.30) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.35) by $0.05. The firm had revenue of $457.10 million during the quarter, compared to analysts’ expectations of $433.47 million. Unity Software had a negative net margin of 36.63% and a negative return on equity of 13.40%. As a group, analysts predict that Unity Software Inc. will post -1.25 EPS for the current fiscal year.

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.