Unity Software (NYSE:U) Sees Unusually-High Trading Volume on Strong Earnings

Shares of Unity Software Inc. (NYSE:U) saw strong trading volume on Friday following a better than expected earnings announcement. 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) earnings per share 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 firm had revenue of $457.10 million during the quarter, compared to the consensus estimate of $433.47 million.

Wall Street Analyst Weigh In

A number of analysts have commented on U shares. HSBC upgraded Unity Software from a “hold” rating to a “buy” rating and set a $34.00 price objective for the company in a research report on Friday. Jefferies Financial Group raised their price target on Unity Software from $23.00 to $28.00 and gave the stock a “hold” rating in a research report on Friday. Benchmark upgraded Unity Software from a “sell” rating to a “hold” rating in a research report on Thursday. Wedbush reiterated an “outperform” rating and set a $27.00 target price on shares of Unity Software in a report on Thursday, February 13th. Finally, Needham & Company LLC lifted their target price on Unity Software from $26.00 to $33.00 and gave the stock a “buy” rating in a report on Friday. One analyst has rated the stock with a sell rating, nine have given a hold rating and six have assigned a buy rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus target price of $25.96.

Insiders Place Their Bets

In other news, SVP Felix The sold 11,719 shares of the company’s stock in a transaction on Monday, November 25th. The shares were sold at an average price of $24.39, for a total transaction of $285,826.41. Following the completion of the transaction, the senior vice president now directly owns 411,960 shares in the company, valued at approximately $10,047,704.40. This represents a 2.77 % 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, CFO Mark Barrysmith sold 8,112 shares of the company’s stock in a transaction 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 transaction, the chief financial officer now owns 454,866 shares of the company’s stock, valued at $11,089,633.08. This trade represents a 1.75 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 762,597 shares of company stock valued at $18,732,374 over the last 90 days. 6.30% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of U. Soviero Asset Management LP bought a new stake in Unity Software during the fourth quarter valued at $2,247,000. Sphera Management Technology Funds Ltd bought a new position in Unity Software in the 4th quarter valued at about $1,128,000. Two Sigma Advisers LP bought a new position in Unity Software in the 4th quarter valued at about $494,000. Two Sigma Investments LP bought a new position in Unity Software in the 4th quarter valued at about $22,999,000. Finally, Tidal Investments LLC increased its stake in Unity Software by 32.6% in the 4th quarter. Tidal Investments LLC now owns 20,428 shares of the company’s stock valued at $459,000 after buying an additional 5,018 shares during the last quarter. 73.46% of the stock is currently owned by institutional investors and hedge funds.

Unity Software Stock Performance

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 stock has a market cap of $11.41 billion, a PE ratio of -13.88 and a beta of 2.32. The company’s 50 day simple moving average is $22.53 and its 200 day simple moving average is $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.