Unity Software (NYSE:U) Shares Gap Up Following Strong Earnings

Unity Software Inc. (NYSE:U - Get Free Report)'s share price gapped up prior to trading 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 trading hands.

The company reported ($0.30) earnings per share for the quarter, beating 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 40.47% and a negative return on equity of 11.30%.

Wall Street Analyst Weigh In

U has been the subject of a number of recent research reports. UBS Group lifted 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. HSBC upgraded shares of Unity Software from a "hold" rating to a "buy" rating and set a $34.00 price target for the company 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 lifted 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, Benchmark upgraded shares of Unity Software from a "sell" rating to a "hold" rating in a research note on Thursday. One investment analyst has rated the stock with a sell rating, nine have assigned a hold rating and six have assigned a buy rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $25.96.

Insider Activity at Unity Software

In related news, Director Tomer Bar-Zeev sold 210,000 shares of the company's stock in a transaction on Wednesday, December 4th. The shares were sold at an average price of $26.23, for a total value of $5,508,300.00. Following the completion of the sale, the director now owns 967,650 shares in the company, valued at $25,381,459.50. This represents a 17.83 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Mark Barrysmith sold 1,395 shares of the company's stock in a transaction on Tuesday, February 18th. The shares were sold at an average price of $21.68, for a total transaction of $30,243.60. Following the completion of the sale, the chief accounting officer now owns 450,881 shares of the company's stock, valued at approximately $9,775,100.08. This trade represents a 0.31 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 762,597 shares of company stock worth $18,732,374 in the last 90 days. 6.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Unity Software

A number of large investors have recently bought and sold shares of the company. Ariose Capital Management Ltd acquired a new stake in shares of Unity Software in the 4th quarter worth $2,299,000. Charles Schwab Investment Management Inc. boosted its holdings in Unity Software by 100.4% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 1,886,016 shares of the company's stock valued at $42,662,000 after purchasing an additional 944,709 shares in the last quarter. CIBC Asset Management Inc boosted its holdings in Unity Software by 2,665.4% in the 3rd quarter. CIBC Asset Management Inc now owns 342,472 shares of the company's stock valued at $7,747,000 after purchasing an additional 330,088 shares in the last quarter. LMR Partners LLP purchased a new stake in Unity Software in the 3rd quarter valued at approximately $611,000. Finally, Edgestream Partners L.P. boosted its holdings in Unity Software by 637.9% in the 3rd quarter. Edgestream Partners L.P. now owns 102,899 shares of the company's stock valued at $2,328,000 after purchasing an additional 88,955 shares in the last quarter. Hedge funds and other institutional investors own 73.46% of the company's stock.

Unity Software Price Performance

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

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.