Citigroup Cuts Unity Software (NYSE:U) Price Target to $43.00

Unity Software (NYSE:U) had its target price decreased by Citigroup from $52.00 to $43.00 in a research report sent to investors on Thursday morning,Benzinga reports. Citigroup currently has a buy rating on the stock.

A number of other equities research analysts have also recently commented on U. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Unity Software in a report on Wednesday, January 21st. Benchmark restated a “hold” rating on shares of Unity Software in a research note on Monday, February 2nd. Morgan Stanley lifted their price objective on Unity Software from $48.00 to $52.00 and gave the stock an “overweight” rating in a report on Tuesday, January 13th. BTIG Research lowered their price objective on Unity Software from $60.00 to $41.00 and set a “buy” rating on the stock in a research note on Thursday. Finally, Wells Fargo & Company dropped their price objective on shares of Unity Software from $54.00 to $38.00 and set an “overweight” rating on the stock in a report on Thursday. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, Unity Software currently has an average rating of “Moderate Buy” and a consensus price target of $39.29.

Unity Software Price Performance

Shares of NYSE:U opened at $18.60 on Thursday. The company has a market capitalization of $8.05 billion, a P/E ratio of -19.38, a price-to-earnings-growth ratio of 17.01 and a beta of 2.04. The company’s 50-day moving average is $40.18 and its 200 day moving average is $39.63. The company has a debt-to-equity ratio of 0.52, a quick ratio of 2.78 and a current ratio of 1.84. Unity Software has a fifty-two week low of $15.33 and a fifty-two week high of $52.15.

Unity Software (NYSE:U) last announced its quarterly earnings data on Wednesday, February 11th. The company reported $0.24 EPS for the quarter, topping the consensus estimate of $0.20 by $0.04. The business had revenue of $503.09 million for the quarter, compared to analyst estimates 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% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.30) earnings per share. On average, equities research analysts forecast that Unity Software will post -1.25 earnings per share for the current year.

Insider Buying and Selling

In other Unity Software news, Director Tomer Bar-Zeev sold 250,000 shares of the stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $41.93, for a total value of $10,482,500.00. Following the sale, the director directly owned 1,048,146 shares in the company, valued at $43,948,761.78. This represents a 19.26% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Matthew S. Bromberg sold 41,025 shares of the firm’s stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $41.38, for a total transaction of $1,697,614.50. Following the completion of the transaction, the chief executive officer directly owned 1,192,541 shares of the company’s stock, valued at approximately $49,347,346.58. The trade was a 3.33% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,338,021 shares of company stock valued at $63,138,575 in the last three months. Insiders own 3.61% of the company’s stock.

Institutional Investors Weigh In On Unity Software

Institutional investors and hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. boosted its stake in Unity Software by 2.9% during the fourth quarter. Vanguard Group Inc. now owns 35,553,296 shares of the company’s stock valued at $1,570,389,000 after buying an additional 996,685 shares during the period. Slate Path Capital LP raised its holdings in shares of Unity Software by 25.4% in the 2nd quarter. Slate Path Capital LP now owns 20,016,952 shares of the company’s stock valued at $484,410,000 after acquiring an additional 4,048,484 shares in the last quarter. Wellington Management Group LLP boosted its position in shares of Unity Software by 58.7% during the 3rd quarter. Wellington Management Group LLP now owns 18,213,875 shares of the company’s stock valued at $729,284,000 after acquiring an additional 6,734,285 shares during the last quarter. Norges Bank bought a new stake in shares of Unity Software during the 2nd quarter valued at about $151,221,000. Finally, Geode Capital Management LLC grew its holdings in shares of Unity Software by 5.9% during the fourth quarter. Geode Capital Management LLC now owns 5,852,047 shares of the company’s stock worth $258,547,000 after purchasing an additional 328,595 shares in the last quarter. Hedge funds and other institutional investors own 73.46% of the company’s stock.

Key Headlines Impacting Unity Software

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

• Positive Sentiment: Q4 beat and improving profitability — Unity reported $503M revenue and beat EPS estimates; management highlighted record-ish free cash flow and margin progress, a direct counterpoint to the sell-off. U’s Q4 Earnings & Revenues Surpass Estimates
• Positive Sentiment: Vector momentum — management and bullish coverage point to strong ad/Vector growth (large January YoY gains and management targeting ~ $1B annualized run-rate by end-2026), which supports medium-term revenue and margin upside. Unity: A Meltdown Worth Buying
• Neutral Sentiment: Analyst responses mixed — many firms cut price targets to reflect near-term headwinds but some maintain Buy/Outperform ratings, leaving a wide spread between market price and some analyst targets. Unity Software Analysts Slash Their Forecasts After Q4 Results
• Neutral Sentiment: Technical/contrarian case — several pieces note the stock is deeply oversold and that the sell-off may have priced in worst-case scenarios, creating a potential buying opportunity for longer-term investors. Down 49% in 4 Weeks, Here’s Why You Should You Buy the Dip
• Negative Sentiment: Weak near-term guidance — management guided Q1 revenue $480–$490M, below consensus, triggering the sharp sell-off as the company intentionally winds down lower-margin legacy ad assets to accelerate migration to Vector. What’s Going On With Unity Stock Friday?
• Negative Sentiment: Market reaction and downgraded sentiment — the guidance miss and strategy pivot prompted steep intraday declines, multiple price-target cuts and at least one analyst downgrade, increasing near-term volatility and downside risk. Unity Software (U) Stock Tumbles 26% After Revenue Forecast Misses Mark

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.