Analysis of Unity Software Inc (U)’s performance, earnings and valuation

Unity Software Inc [U] stock prices are up 5.48% to $22.73 at the moment. It is a good measure of the stock’s recent performance to check whether the stock’s short-term value is rising or falling. The U shares have gain 5.92% over the last week, with a monthly amount drifted -19.80%, and not seem to be holding up well over a long-time horizon.

From an analyst’s perspective:

Unity Software Inc [NYSE: U] stock has seen the most recent analyst activity on March 11, 2025, when Citigroup upgraded its rating to a Buy but kept the price target unchanged to $30 for it. On February 21, 2025, upgrade upgraded it’s rating to Buy but maintained its price target of $34 on the stock. The Benchmark Company upgraded its rating to a Hold. Wells Fargo initiated its recommendation with a Equal Weight and recommended $20 as its price target on October 29, 2024. Stifel reiterated a Buy rating for this stock on September 13, 2024, and upped its price target to $25. In a note dated September 03, 2024, Morgan Stanley upgraded an Overweight rating on this stock but restated the target price of $22.

The stock price of Unity Software Inc [U] has been fluctuating between $13.90 and $30.88 over the past year. Currently, Wall Street analysts expect the stock to reach $30 within the next 12 months. Unity Software Inc [NYSE: U] shares were valued at $22.73 at the most recent close of the market. An investor can expect a potential return of 31.98% based on the average U price forecast.

Analyzing the U fundamentals

The Unity Software Inc [NYSE:U] reported sales of 1.81B for trailing twelve months, representing a drop of -24.98%. Gross Profit Margin for this corporation currently stands at 0.73% with Operating Profit Margin at -0.28%, Pretax Profit Margin comes in at -0.37%, and Net Profit Margin reading is -0.37%. To continue investigating profitability, this company’s Return on Assets is posted at -0.1, Equity is -0.21 and Total Capital is -0.09. Upon thorough examination of the company’s fundamental financial framework, it becomes apparent that the debt-to-equity ratio stands at 0.7.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 22.33 points at the first support level, and at 21.94 for the second support level. However, for the 1st resistance point, the stock is sitting at 23.00, and for the 2nd resistance point, it is at 23.28.

Ratios To Look Out For

It’s worth pointing out that Unity Software Inc [NYSE:U]’s Current Ratio is 2.49. Further, the Quick Ratio stands at 2.49, while the Cash Ratio is 1.71. Considering the valuation of this stock, the price to sales ratio is 5.14, the price to book ratio is 2.92.

Transactions by insiders

Recent insider trading involved Barrysmith Mark, Chief Accounting Officer, that happened on Mar 17 ’25 when 1445.0 shares were sold. SVP, Chief Legal Officer, Gupta Anirma completed a deal on Mar 17 ’25 to sell 482.0 shares. Meanwhile, Officer Barrysmith Mark bought 1445.0 shares on Mar 17 ’25.

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