Unity Software (U) Stock Price, News & Analysis

Company Overview

Unity Software Inc. was founded in 2004 as Over The Edge Entertainment. Over The Edge Entertainment was a software company focused on video games and visualization best know for its gaming platform Unity. Unity is the result of the company’s first game which was a huge failure. The company’s success lay in the tools it developed for making video games, which is when Unity was born. Unity is a game development platform that allows users to create and build-out interactive 2-D and 3-D environments for gaming and other applications.

The company changed its name in 2007 to Unity Software Inc to better represent the business and its goals. Unity Software was founded in Denmark but it is now headquartered in San Francisco, California. It is a member of the Russell 1000 index and brought in over $1.1 billion in revenue for fiscal 2021. The company employs more than 5,200 people and operates with a network of at least 6 subsidiary businesses including DeltaDNA, Multiplay, and Vivox.

Unity Software’s success is tied to that of the iPhone. Unity was among the first developers to fully support the iPhone operating system, making it a go-to choice for game developers. While no market share data is available for Unity in regard to the iPhone App Store, there are over 1 million games listed, and Unity powers a large portion of them.

Unity Software expanded its offerings beginning in 2009. Over the years it has added platforms for desktop, mobile, tablets, gaming consoles, 3-D, web-based and virtual reality. Unity’s technology has also been adapted to the movie/entertainment industry as well as the auto industry. The Unity Asset Store is a marketplace for Unity and its users to sell tools, artwork, etc to developers. The addition of Vivox to the fold provides a VOIP feature for gaming that is used in games like Fortnight where players, who may be playing from opposite sides of the Earth, operate in groups.

Unity Software announced its intention to go public in the summer of 2020. The IPO priced above the expected price and gave the company a valuation of $13.7 billion. The company operates in 3 segments: Create Solutions, Operate Solutions, and Other. In 2022, the company announced a major partnership with Microsoft to use its Azure cloud platform as its platform of choice for building cloud-based 3-D experiences with the Unity Engine.

 

Written by Jeffrey Neal Johnson

Key Stats

• Today's Range: $22.04 to $24.03
• 50-Day Range: $17.34 to $23.51
• 52-Week Range: $13.90 to $43.54
• Volume: 17.34 million shs
• Average Volume: 11.93 million shs
• Market Capitalization: $9.47 billion
• P/E Ratio: N/A
• Dividend Yield: N/A
• Price Target: $23.35
• Consensus Rating: Hold

Unity Software Stock Analysis - MarketRank™

Unity Software scored higher than 35% of companies evaluated by MarketBeat, and ranked 497th out of 647 stocks in the computer and technology sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.1 / 5
• Analyst Rating: Hold

Consensus Rating

Unity Software has received a consensus rating of Hold. The company's average rating score is 2.25, and is based on 6 buy ratings, 8 hold ratings, and 2 sell ratings.

Amount of Analyst Coverage

Unity Software has been the subject of 11 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 0.6 / 5
• Proj. Earnings Growth: Growing

Earnings Growth

Earnings for Unity Software are expected to grow in the coming year, from ($1.71) to ($1.25) per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Unity Software is -11.52, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.

Price to Earnings Ratio vs. Sector

The P/E ratio of Unity Software is -11.52, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.

Price to Book Value per Share Ratio

Unity Software has a P/B Ratio of 2.97. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

6.06% of the outstanding shares of Unity Software have been sold short.

Short Interest Ratio / Days to Cover

Unity Software has a short interest ratio ("days to cover") of 2, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Unity Software has recently decreased by 4.91%, indicating that investor sentiment is improving.

Dividend

• Score: 0.0 / 5
• Dividend Strength: N/A

Dividend Yield

Unity Software does not currently pay a dividend.

Dividend Growth

Unity Software does not have a long track record of dividend growth.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

6.06% of the outstanding shares of Unity Software have been sold short.

Short Interest Ratio / Days to Cover

Unity Software has a short interest ratio ("days to cover") of 2, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Unity Software has recently decreased by 4.91%, indicating that investor sentiment is improving.

News and Social Media

• Score: 2.5 / 5
• News Sentiment: 0.49

News Sentiment

Unity Software has a news sentiment score of 0.49. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.63 average news sentiment score of Computer and Technology companies.

News Coverage This Week

MarketBeat has tracked 20 news articles for Unity Software this week, compared to 10 articles on an average week.

Search Interest

58 people have searched for U on MarketBeat in the last 30 days. This is an increase of 12% compared to the previous 30 days.

MarketBeat Follows

Only 18 people have added Unity Software to their MarketBeat watchlist in the last 30 days. This is a decrease of -10% compared to the previous 30 days.

Company Ownership

• Score: 2.5 / 5
• Insider Trading: Selling Shares

Insider Buying vs. Insider Selling

In the past three months, Unity Software insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $10,148,126.00 in company stock.

Percentage Held by Insiders

Only 6.30% of the stock of Unity Software is held by insiders.

Percentage Held by Institutions

73.46% of the stock of Unity Software is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

U Stock Analysis - Frequently Asked Questions

How have U shares performed this year?

Unity Software's stock was trading at $40.89 at the beginning of 2024. Since then, U stock has decreased by 42.5% and is now trading at $23.51.
View the best growth stocks for 2024 here.

How were Unity Software's earnings last quarter?

Unity Software Inc. (NYSE:U) released its earnings results on Thursday, August, 8th. The company reported ($0.32) EPS for the quarter, beating the consensus estimate of ($0.44) by $0.12. Unity Software's revenue was down 15.8% on a year-over-year basis.

Does Unity Software have any subsidiaries?

Unity Software subsidiaries include Finger Food Studios, Artomatix, ChilliConnect, deltaDNA, Vivox, Digital Monarch Media, Multiplay, and more.

When did Unity Software IPO?

Unity Software (U) raised $950 million in an initial public offering (IPO) on Friday, September 18th 2020. The company issued 25,000,000 shares at a price of $34.00-$42.00 per share. Goldman Sachs, Credit Suisse, BofA Securities, Barclays and William Blair served as the underwriters for the IPO and Oppenheimer, Piper Sandler, Stifel, Wedbush Securities, Academy Securities and Siebert Williams Shank were co-managers.

Who are Unity Software's major shareholders?

Top institutional shareholders of Unity Software include Resolute Advisors LLC (3.57%), Sumitomo Mitsui Trust Group Inc. (1.94%), ARK Investment Management LLC (1.68%) and Geode Capital Management LLC (1.16%). Insiders that own company stock include David Helgason, Tomer Bar-Zeev, John S Riccitiello, Shlomo Dovrat, Luis Felipe Visoso, Marc Whitten, Carol W Carpenter, Felix The, Anirma Gupta, Mark Barrysmith, Ingrid Lestiyo, Lake Group LLC Silver, Robynne Sisco, Michelle K Lee, Iv (Gp) LLC Slta, Clive Downie and Ruth Ann Keene.
View institutional ownership trends.

How do I buy shares of Unity Software?

Shares of U stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of Unity Software own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Unity Software investors own include Block (SQ), Digital Turbine (APPS), CrowdStrike (CRWD), Palantir Technologies (PLTR), SoFi Technologies (SOFI), Okta (OKTA) and ChargePoint (CHPT).

Company Calendar

• Last Earnings: 8/08/2024
• Today: 11/22/2024
• Fiscal Year End: 12/31/2024
• Next Earnings (Estimated): 2/24/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Computer and Technology
• Industry: Prepackaged software
• Sub-Industry: N/A
• Current Symbol: NYSE:U
• CUSIP: N/A
• CIK: 1810806
• Web: www.unity.com
• Phone: 415-539-3162
• Fax: N/A
• Employees: 6,748
• Year Founded: 2004

Price Target and Rating

• Average Stock Price Target: $23.35
• High Stock Price Target: $38.00
• Low Stock Price Target: $15.00
• Potential Upside/Downside: -0.7%
• Consensus Rating: Hold
• Rating Score (0-4): 2.25
• Research Coverage: 16 Analysts

Profitability

• EPS (Most Recent Fiscal Year): ($2.04)
• Trailing P/E Ratio: N/A
• Forward P/E Ratio: N/A
• P/E Growth: N/A
• Net Income: $-822,010,000.00
• Net Margins: -40.47%
• Pretax Margin: -40.25%
• Return on Equity: -11.30%
• Return on Assets: -5.26%

Debt

• Debt-to-Equity Ratio: 0.70
• Current Ratio: 2.41
• Quick Ratio: 2.41

Sales & Book Value

• Annual Sales: $1.97 billion
• Price / Sales: 4.82
• Cash Flow: $0.64 per share
• Price / Cash Flow: 36.63
• Book Value: $7.92 per share
• Price / Book: 2.97

Miscellaneous

• Outstanding Shares: 402,840,000
• Free Float: 377,461,000
• Market Cap: $9.47 billion
• Optionable: Not Optionable
• Beta: 2.29