Unity Software (NYSE:U) Sees Unusually-High Trading Volume Following Better-Than-Expected Earnings

Unity Software Inc. (NYSE:U) shares saw strong trading volume on Friday following a stronger than expected earnings report. 14,309,981 shares changed hands during 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, topping 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 company had revenue of $457.10 million during the quarter, compared to the consensus estimate of $433.47 million.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on U shares. Wells Fargo & Company raised their target price on shares of Unity Software from $20.00 to $27.00 and gave the stock an “equal weight” rating in a research report on Friday. JMP Securities restated a “market perform” rating on shares of Unity Software in a report on Monday, February 3rd. Needham & Company LLC raised their price target on shares of Unity Software from $26.00 to $33.00 and gave the company a “buy” rating in a report on Friday. Morgan Stanley raised their price objective on Unity Software from $24.00 to $26.00 and gave the company an “overweight” rating in a research report on Monday, January 13th. Finally, Barclays boosted their price objective on Unity Software from $18.00 to $26.00 and gave the stock an “equal weight” rating in a research note on Friday. One equities research analyst has rated the stock with a sell rating, nine have issued a hold rating and six have given a buy rating to the stock. According to MarketBeat.com, Unity Software presently has a consensus rating of “Hold” and a consensus target price of $25.54.

Insider Buying and Selling

In related news, CFO Mark Barrysmith sold 1,228 shares of the stock in a transaction dated Monday, December 16th. The shares were sold at an average price of $24.44, for a total value of $30,012.32. Following the completion of the sale, the chief financial officer now owns 453,638 shares in the company, valued at approximately $11,086,912.72. This trade represents a 0.27 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Felix The sold 11,719 shares of the business’s stock in a transaction dated Monday, November 25th. The shares were sold at an average price of $24.39, for a total value of $285,826.41. Following the transaction, the senior vice president now owns 411,960 shares in the company, valued at $10,047,704.40. This represents a 2.77 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 679,264 shares of company stock valued at $16,612,383. Insiders own 6.30% of the company’s stock.

Institutional Trading of Unity Software

Institutional investors have recently modified their holdings of the company. Anderson Financial Strategies LLC bought a new position in shares of Unity Software during the 4th quarter worth about $28,000. R Squared Ltd acquired a new stake in shares of Unity Software in the 4th quarter valued at $30,000. Principal Securities Inc. grew its holdings in shares of Unity Software by 50.5% in the 4th quarter. Principal Securities Inc. now owns 1,422 shares of the company’s stock worth $32,000 after purchasing an additional 477 shares during the last quarter. Planning Capital Management Corp bought a new position in Unity Software during the 3rd quarter valued at about $34,000. Finally, Point72 Asia Singapore Pte. Ltd. acquired a new position in Unity Software in the fourth quarter valued at about $36,000. Institutional investors and hedge funds own 73.46% of the company’s stock.

Unity Software Stock Performance

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 market capitalization of $11.62 billion, a price-to-earnings ratio of -14.04 and a beta of 2.32. The stock’s 50-day simple moving average is $22.45 and its 200 day simple moving average is $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.