Wedbush Issues Pessimistic Forecast for Unity Software (NYSE:U) Stock Price

Unity Software (NYSE:U) had its price objective dropped by analysts at Wedbush from $37.00 to $30.00 in a report issued on Thursday,Benzinga reports. The brokerage currently has an “outperform” rating on the stock. Wedbush’s target price would suggest a potential upside of 47.97% from the company’s current price.

Several other brokerages have also weighed in on U. Arete Research upgraded Unity Software from a “neutral” rating to a “buy” rating and set a $48.00 price objective for the company in a research report on Monday, December 1st. Barclays reduced their target price on shares of Unity Software from $35.00 to $28.00 and set an “equal weight” rating on the stock in a report on Thursday. Deutsche Bank Aktiengesellschaft started coverage on Unity Software in a report on Wednesday, October 22nd. They set a “hold” rating and a $39.00 price target for the company. Morgan Stanley upped their target price on shares of Unity Software from $48.00 to $52.00 and gave the company an “overweight” rating in a report on Tuesday, January 13th. Finally, Oppenheimer raised Unity Software from a “market perform” rating to an “outperform” rating and set a $38.00 target price for the company in a report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $40.74.

Unity Software Stock Performance

NYSE:U traded down $1.14 during mid-day trading on Thursday, reaching $20.28. The company’s stock had a trading volume of 13,671,587 shares, compared to its average volume of 18,696,662. The firm’s fifty day moving average price is $41.22 and its two-hundred day moving average price is $39.83. The stock has a market cap of $8.68 billion, a P/E ratio of -19.30, a PEG ratio of 30.46 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. Unity Software has a 12-month low of $15.33 and a 12-month high of $52.15.

Unity Software (NYSE:U) last posted its quarterly earnings results on Wednesday, February 11th. The company reported $0.24 earnings per share for the quarter, topping analysts’ consensus estimates of $0.20 by $0.04. The business 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 period in the prior year, the business posted ($0.30) earnings per share. On average, equities analysts forecast that Unity Software will post -1.25 EPS for the current fiscal year.

Insider Activity at Unity Software

In other Unity Software news, CFO Jarrod Yahes sold 34,719 shares of the business’s stock in a transaction dated Tuesday, November 25th. The shares were sold at an average price of $41.38, for a total value of $1,436,672.22. Following the sale, the chief financial officer directly owned 573,871 shares in the company, valued at approximately $23,746,781.98. The trade was a 5.70% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Alexander Blum sold 40,693 shares of the business’s stock in a transaction that occurred on Tuesday, November 25th. The stock was sold at an average price of $41.38, for a total transaction of $1,683,876.34. Following the sale, the chief operating officer directly owned 563,118 shares of the company’s stock, valued at approximately $23,301,822.84. This trade represents a 6.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,338,021 shares of company stock valued at $63,138,575 in the last ninety days. Company insiders own 3.61% of the company’s stock.

Institutional Trading of Unity Software

Several large investors have recently modified their holdings of U. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Unity Software by 5.9% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 813,176 shares of the company’s stock worth $15,930,000 after acquiring an additional 45,481 shares during the last quarter. Focus Partners Wealth bought a new stake in Unity Software in the first quarter worth $260,000. US Bancorp DE increased its holdings in shares of Unity Software by 26.4% during the second quarter. US Bancorp DE now owns 33,963 shares of the company’s stock valued at $822,000 after acquiring an additional 7,103 shares in the last quarter. Callan Family Office LLC bought a new position in Unity Software in the 2nd quarter worth about $305,000. Finally, Vanguard Personalized Indexing Management LLC grew its position in Unity Software by 9.4% during the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 34,558 shares of the company’s stock valued at $836,000 after purchasing an additional 2,962 shares during the last quarter. 73.46% of the stock is owned by institutional investors and hedge funds.

Unity Software News Roundup

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

• Positive Sentiment: Q4 beat and operational progress — Unity reported revenue of $503.1M and EPS of $0.24, and management highlighted strong Vector/Create momentum and improving cash generation. BusinessWire: Q4 Results
• Positive Sentiment: Oppenheimer upgraded Unity to Outperform, citing resilience and upside from AI-related products — a vote of confidence from a major shop. Oppenheimer Upgrade
• Positive Sentiment: Needham reaffirmed its Buy rating with a $50 price target, signaling some analysts still see sizable upside vs. current levels. Needham Reaffirmation (Benzinga)
• Neutral Sentiment: UBS cut its price target to $32 and moved to Neutral — a reduction in near-term expectations but not an outright sell call. UBS Lowers Target
• Neutral Sentiment: BTIG trimmed its target from $60 to $41 while keeping a Buy rating — reflects lower near-term forecasts but continued conviction in longer-term upside. BTIG Target Cut
• Neutral Sentiment: Management is intentionally winding down legacy, low?margin ad business (IronSource) to accelerate migration to Vector (AI-powered products). That strategy can improve long-term margins but creates temporary revenue drag. MarketWatch: AI / Transition
• Negative Sentiment: Guidance miss and demand concerns — Unity’s Q1 revenue guide (480–490M) fell short of Street estimates, triggering a large sell-off on fears of weakening demand. Reuters: Downbeat Forecast
• Negative Sentiment: Market reaction amplified by AI displacement concerns and analyst notes that the near-term revenue hit could last until customers fully migrate — multiple outlets flagged the plunge as driven more by outlook and AI fears than the quarter’s headline beat. Seeking Alpha: Guidance Reaction
• Negative Sentiment: Heavy intraday selling and volatility — coverage notes a ~30% intraday drop and very high trading volume as investors delever and reprice expectations. Yahoo Finance: Shares Drop

Unity Software Company Profile

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.