Unity Software (NYSE:U) Shares Gap Up on Analyst Upgrade

27 Mar 2026, 15:22 by Tristan Rich · The Markets Daily

Unity Software Inc. (NYSE:U – Get Free Report)’s stock price gapped up prior to trading on Friday after Bank of America raised their price target on the stock from $19.00 to $21.00. The stock had previously closed at $17.13, but opened at $20.23. Bank of America currently has a neutral rating on the stock. Unity Software shares last traded at $18.8120, with a volume of 18,674,807 shares.

A number of other equities research analysts also recently issued reports on U. Wells Fargo & Company decreased their price objective on Unity Software from $38.00 to $29.00 and set an “overweight” rating on the stock in a research report on Friday. Freedom Capital upgraded Unity Software to a “strong-buy” rating in a report on Thursday, January 15th. Piper Sandler raised Unity Software from a “neutral” rating to an “overweight” rating and boosted their target price for the company from $43.00 to $59.00 in a research report on Thursday, December 11th. The Goldman Sachs Group decreased their price target on Unity Software from $47.00 to $27.00 and set a “neutral” rating on the stock in a report on Thursday, February 12th. Finally, Benchmark reaffirmed a “hold” rating on shares of Unity Software in a research note on Monday, February 2nd. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Unity Software currently has a consensus rating of “Moderate Buy” and a consensus price target of $38.46.

Read Our Latest Stock Report on Unity Software

Insider Buying and Selling at Unity Software

In other news, COO Alexander Blum sold 10,164 shares of the stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $18.07, for a total value of $183,663.48. Following the sale, the chief operating officer directly owned 550,966 shares in the company, valued at approximately $9,955,955.62. This represents a 1.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Jarrod Yahes sold 12,196 shares of the firm’s stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $18.07, for a total value of $220,381.72. Following the sale, the chief financial officer directly owned 533,933 shares of the company’s stock, valued at $9,648,169.31. This represents a 2.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 41,684 shares of company stock worth $773,350 over the last 90 days. Company insiders own 3.61% of the company’s stock.

Unity Software News Summary

Here are the key news stories impacting Unity Software this week:

Positive Sentiment: Preliminary Q1 results beat guidance: Unity expects revenue of $505M–$508M (vs. prior guidance $480M–$490M) and Adjusted EBITDA of $130M–$135M (vs. $105M–$110M), signaling stronger growth and margin expansion driven by Unity V. Business Wire – Preliminary Q1 Results
Positive Sentiment: Strategic overhaul — Unity said it will exit non‑strategic ad businesses to enhance growth and profitability, a move investors view as simplifying the business and improving margins. Proactive Investors – Strategic Overhaul
Positive Sentiment: Multiple analyst supports and price targets: Citizens/JMP reaffirmed a Market Outperform with a $37 PT, Wedbush kept an Outperform at $30, Needham reaffirmed a $35 PT, and BTIG keeps a buy view (~$39 PT) — these notes give investors confidence in upside potential. Benzinga – Analyst Notes
Neutral Sentiment: Media coverage and investor radar mentions (MarketWatch, MSN, Yahoo) are amplifying the beat and strategy change, which helps liquidity and visibility but doesn’t change fundamentals by itself. Yahoo Finance – Preliminary Results
Neutral Sentiment: Macro headwinds: U.S. equity futures were weaker pre‑bell today, which can temper broader risk appetite even as Unity reports good company‑specific news. Yahoo Finance – Futures
Negative Sentiment: Some analyst price-target trims: Wells Fargo lowered its PT from $38 to $29 (still an overweight) — a reminder some analysts remain cautious on valuation and execution risk. Benzinga – Wells Fargo Note
Negative Sentiment: Technical and valuation context: U is still trading below its 50‑day ($24.77) and 200‑day ($35.99) SMAs and has a history of volatile swings; consensus still expects negative EPS this year, so meeting execution targets remains critical. (Background data provided by investor materials.)

Institutional Trading of Unity Software

A number of large investors have recently made changes to their positions in U. Root Financial Partners LLC bought a new position in shares of Unity Software in the third quarter worth about $27,000. REAP Financial Group LLC purchased a new position in Unity Software in the 4th quarter worth about $28,000. Larson Financial Group LLC increased its stake in Unity Software by 88.1% in the 3rd quarter. Larson Financial Group LLC now owns 728 shares of the company’s stock worth $29,000 after buying an additional 341 shares during the period. V Square Quantitative Management LLC purchased a new position in Unity Software in the 4th quarter worth about $30,000. Finally, IFP Advisors Inc bought a new stake in Unity Software during the 3rd quarter valued at about $33,000. 73.46% of the stock is owned by hedge funds and other institutional investors.

Unity Software Stock Up 9.8%

The company has a market cap of $8.15 billion, a P/E ratio of -19.60, a price-to-earnings-growth ratio of 9.55 and a beta of 2.14. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.84 and a current ratio of 1.84. The business’s fifty day moving average is $24.77 and its two-hundred day moving average is $35.99.

Unity Software (NYSE:U – Get Free Report) last issued its earnings results on Wednesday, February 11th. The company reported $0.24 EPS for the quarter, topping analysts’ consensus estimates of $0.20 by $0.04. The business had revenue of $503.09 million for the quarter, compared to the consensus estimate of $490.64 million. Unity Software had a negative net margin of 21.77% and a negative return on equity of 4.76%. The company’s revenue for the quarter was up 10.1% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.30) EPS. Equities analysts predict that Unity Software Inc. will post -1.25 EPS for the current year.

About Unity Software

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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.