Unity Software (NYSE:U) Shares Gap Up After Earnings Beat

Unity Software Inc. (NYSE:U)’s share price gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. 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 trading hands.

The company reported ($0.30) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.35) by $0.05. Unity Software had a negative net margin of 40.47% and a negative return on equity of 11.30%.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on U. Benchmark raised shares of Unity Software from a “sell” rating to a “hold” rating in a research note on Thursday. Morgan Stanley lifted their target price on shares of Unity Software from $24.00 to $26.00 and gave the stock an “overweight” rating in a research note on Monday, January 13th. Barclays lifted their price target on Unity Software from $16.00 to $18.00 and gave the stock an “equal weight” rating in a report on Friday, November 8th. Wedbush reiterated an “outperform” rating and set a $27.00 price target on shares of Unity Software in a report on Thursday, February 13th. Finally, UBS Group lifted their price target on Unity Software from $21.00 to $23.00 and gave the stock a “neutral” rating in a report on Wednesday, January 22nd. One investment analyst has rated the stock with a sell rating, eight have given a hold rating and six have given a buy rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $22.81.

Insider Activity at Unity Software

In related news, 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 completion of the transaction, the senior vice president now owns 411,960 shares in the company, valued at approximately $10,047,704.40. The trade was a 2.77 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Mark Barrysmith sold 1,228 shares of Unity Software stock in a transaction that occurred on Monday, December 16th. The shares were sold at an average price of $24.44, for a total transaction of $30,012.32. Following the completion of the transaction, the chief financial officer now owns 453,638 shares of the company’s stock, valued at $11,086,912.72. This trade represents a 0.27 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 679,264 shares of company stock worth $16,612,383. Company insiders own 6.30% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Creative Planning grew its holdings in Unity Software by 13.7% during the 3rd quarter. Creative Planning now owns 153,742 shares of the company’s stock worth $3,478,000 after acquiring an additional 18,547 shares in the last quarter. Blue Trust Inc. boosted its position in shares of Unity Software by 54.0% during the 3rd quarter. Blue Trust Inc. now owns 4,810 shares of the company’s stock worth $109,000 after acquiring an additional 1,687 shares in the last quarter. Signaturefd LLC increased its holdings in shares of Unity Software by 106.1% in the 3rd quarter. Signaturefd LLC now owns 4,081 shares of the company’s stock valued at $92,000 after acquiring an additional 2,101 shares during the last quarter. Greenleaf Trust acquired a new stake in shares of Unity Software during the 3rd quarter worth about $310,000. Finally, International Assets Investment Management LLC lifted its stake in Unity Software by 1,787.9% during the third quarter. International Assets Investment Management LLC now owns 14,839 shares of the company’s stock worth $336,000 after purchasing an additional 14,053 shares during the last quarter. Institutional investors and hedge funds own 73.46% of the company’s stock.

Unity Software Price Performance

The stock has a market capitalization of $11.26 billion, a price-to-earnings ratio of -13.70 and a beta of 2.32. 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 stock has a fifty day moving average of $22.45 and a 200-day moving average of $20.99.

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.