Unity Software (NYSE:U) Trading Up 9.5% – What’s Next?
by Sarita Garza · The Markets DailyUnity Software Inc. (NYSE:U – Get Free Report)’s stock price was up 9.5% during mid-day trading on Monday . The stock traded as high as $27.53 and last traded at $27.5040. Approximately 5,431,175 shares changed hands during trading, a decline of 63% from the average daily volume of 14,782,011 shares. The stock had previously closed at $25.11.
Key Stories Impacting Unity Software
Here are the key news stories impacting Unity Software this week:
- Positive Sentiment: Beat on Q4 revenue and EPS — Unity reported $503.1M in revenue and $0.24 EPS, above consensus, with year-over-year revenue growth and continued strength in Vector and Create products. Unity Reports Fourth Quarter and Fiscal Year 2025 Financial Results
- Positive Sentiment: Analyst upgrades and bullish notes — Oppenheimer upgraded Unity to outperform with a $38 PT citing AI resilience, and Needham reaffirmed a buy rating with a $50 target, both supporting longer-term upside narratives. Unity Software upgraded: Oppenheimer eyes $38 amid AI resilience
- Positive Sentiment: Large options activity — unusually high call-option buying suggests some traders were positioned for upside before the print (75,902 calls noted), indicating pockets of bullish interest.
- Neutral Sentiment: Board and corporate developments — appointment of Bernard Kim to the board and inclusion in industry discussions on real-time visualization are positive governance/visibility items but unlikely to move near-term results materially. Unity Appoints Bernard Kim to its Board of Directors
- Negative Sentiment: Weak Q1 2026 guidance — management forecasted Q1 revenue of $480M–$490M (vs. $491.8M consensus) and adjusted EBITDA of $105M–$110M, flagging softer demand expectations; this guidance drove the sharp intraday sell-off. Unity Software shares drop sharply on weak first quarter guidance
- Negative Sentiment: Market reaction and demand concerns — traders interpreted the downbeat outlook as evidence of a potential demand slump for Unity’s software, leading to nearly 30% intraday decline and very high trading volume. Unity shares plummet as downbeat forecast sparks fears of a demand slump
- Neutral Sentiment: Full earnings call transcript available — management commentary (see transcript) provides more color on drivers and cadence; investors should read the call for specifics on demand, product momentum (Vector/Create), and margin/expense plans. Unity Software Inc. (U) Q4 2025 Earnings Call Transcript
Analyst Upgrades and Downgrades
Several research firms have commented on U. Barclays upped their price target on Unity Software from $30.00 to $35.00 and gave the company an “equal weight” rating in a report on Thursday, November 6th. Arete Research upgraded Unity Software from a “neutral” rating to a “buy” rating and set a $48.00 price objective on the stock in a research report on Monday, December 1st. Morgan Stanley raised their target price on Unity Software from $48.00 to $52.00 and gave the stock an “overweight” rating in a research report on Tuesday, January 13th. BTIG Research raised shares of Unity Software from a “neutral” rating to a “buy” rating and set a $60.00 price target on the stock in a report on Thursday, December 11th. Finally, Citigroup increased their price objective on shares of Unity Software from $50.00 to $52.00 and gave the company a “buy” rating in a research note on Tuesday, November 11th. Two analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $44.46.
Check Out Our Latest Stock Report on Unity Software
Unity Software Stock Down 26.3%
The stock has a market capitalization of $9.17 billion, a P/E ratio of -20.41, a P/E/G ratio of 28.86 and a beta of 2.04. The company has a current ratio of 2.78, a quick ratio of 2.78 and a debt-to-equity ratio of 0.70. The firm’s fifty day moving average is $41.68 and its 200-day moving average is $39.96.
Unity Software (NYSE:U – Get Free Report) last posted its quarterly earnings data on Wednesday, February 11th. The company reported $0.24 earnings per share for the quarter, topping the consensus estimate of $0.20 by $0.04. The company had revenue of $503.09 million during the quarter, compared to analyst estimates of $490.64 million. Unity Software had a negative net margin of 24.15% and a negative return on equity of 9.45%. The company’s revenue was up 10.1% on a year-over-year basis. During the same quarter last year, the business posted ($0.30) earnings per share. As a group, equities research analysts predict that Unity Software Inc. will post -1.25 earnings per share for the current year.
Insider Activity
In other Unity Software news, COO Alexander Blum sold 1,988 shares of the firm’s stock in a transaction dated Friday, November 28th. The shares were sold at an average price of $42.47, for a total value of $84,430.36. Following the completion of the sale, the chief operating officer owned 561,130 shares in the company, valued at approximately $23,831,191.10. This trade represents a 0.35% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Tomer Bar-Zeev sold 50,000 shares of the stock in a transaction that occurred on Friday, December 12th. The shares were sold at an average price of $47.00, for a total transaction of $2,350,000.00. Following the sale, the director directly owned 873,146 shares in the company, valued at $41,037,862. This trade represents a 5.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 1,338,021 shares of company stock worth $63,138,575. 3.61% of the stock is currently owned by insiders.
Institutional Trading of Unity Software
Several institutional investors and hedge funds have recently made changes to their positions in the business. Jefferies Financial Group Inc. bought a new position in Unity Software during the 2nd quarter worth approximately $205,000. Forum Financial Management LP acquired a new stake in Unity Software in the second quarter worth $256,000. Austin Wealth Management LLC bought a new position in shares of Unity Software during the second quarter worth $208,000. PNC Financial Services Group Inc. boosted its position in shares of Unity Software by 148.2% during the second quarter. PNC Financial Services Group Inc. now owns 22,181 shares of the company’s stock worth $537,000 after purchasing an additional 13,245 shares in the last quarter. Finally, Broad Peak Investment Advisers Pte Ltd grew its holdings in shares of Unity Software by 43.6% in the 3rd quarter. Broad Peak Investment Advisers Pte Ltd now owns 2,849,437 shares of the company’s stock valued at $114,091,000 after buying an additional 865,179 shares during the period. Institutional investors own 73.46% of the company’s stock.
About Unity Software
Unity Software is a leading provider of a real-time 3D development platform that enables creators across industries to design, build and operate interactive, real-time experiences. Originally focused on the game development market, Unity’s technology now extends into sectors such as film, automotive, architecture, engineering and construction, delivering immersive content for mobile, desktop, console, augmented reality and virtual reality devices. The company’s core offering comprises a suite of authoring tools, runtime engines and cloud services that streamline the creation and deployment of interactive 3D applications.
The Unity Editor serves as the central hub where developers design scenes, script behavior and iterate on assets.