The stock of Unity Software Inc. (NYSE:U) decreased by -$0.09 on Monday to finish at $36.54, down -0.25 percent. The last five days have seen an average of 8,669,320 shares of common stock traded. 17 times new highs were reached in the current year, with a gain of $7.95. The average number of shares traded over the last 20 days was 10,688,935, while the average volume over the last 50 days totaled 15,698,812.
U stock dropped -17.59% since last month. On 08/14/23, the company’s shares reached a one-month low of $35.22. The stock touched a high of $58.62 on 07/19/23, after rallying from a low of $21.22 in 52 weeks. The price of U stock has risen by 27.81% or $7.95 this year, reaching a new high 17 times. Still, the stock price is down -37.67% from the 52-week high.
Insider Transactions
U stock investors should be aware that Unity Software Inc. (U) stock had its last reported insider trading activity 5 days ago on Aug 10. On Aug 10, Director Dovrat Shlomo sold 400 shares at $38.50 each. This transaction resulted in the insider making $15,400. On Aug 09, Dovrat Shlomo sold 500 shares at a price of US$38.56. After the transaction, the insider now owns 5,666 shares. Director Dovrat Shlomo had earlier sold 197,659 shares on Aug 08 for $38.12 a share. The transaction was completed for $7,534,761.
Valuation Metrics
Beta for the stock is 2.42. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 7.85, the price-to-book (PB) ratio of 4.03.
Financial Health
For the three months ended March 30, Unity Software Inc.’s quick ratio was 2.50, while its current ratio was 2.50, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending March 30 is 0.79, and the total debt to equity ratio is 0.79. As far as profitability goes, gross margin for the trailing twelve months is 68.30% percent. Unity Software Inc.’s EBITDA margin for the year ended March 30 was -45.80%, whereas its operating margin stood at -53.10% for the same period. Based on annual data, it had gross profit of $948.52 million and revenue of $1.39 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. U’s return on assets (ROA) during the last 12 months has been -14.10%. There was a -14.70% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -31.20%.
Earnings Surprise
According to Unity Software Inc.’s quarterly financial report for the quarter that ended March 30. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $533.48 million, while revenues rose by 44.32% to $500.36 million. It was predicted that Unity Software Inc.’s quarterly earnings would be $0.09, but it ended up being -$0.02. EBITDA was -$80.37 million for the quarter. At the end of Unity Software Inc.’s most recent quarter ended March 30, its liabilities totaled 4.23 billion, while its total debt was $2.87 billion. Equity owned by shareholders amounts to $383.46 million.
Technical Picture
Here’s a quick look at Unity Software Inc.’s (U) price momentum from a technical perspective. As of 14 August, the RSI 9-day stood at 23.83%, suggesting the stock is oversold, with a 34.66% historical volatility rate.
The stochastic %K and %D were 6.75% and 5.76% respectively, while the average true range (ATR) was 2.10. Based on the 14-day stochastic reading of 11.06%, the RSI (14) reading is 34.20%. On the 9-day MACD Oscillator, the stock is at -2.07, and the 14-day reading is at -4.14.
Analyst Ratings
In its analyst report released on June 29, 2023, JMP Securities began covering Unity Software Inc. (NYSE: U). The stock was rated as a Mkt perform by the brokerage firm. Analysts have assigned Unity Software Inc. (U) an Overweight rating. U is a stock that is recommended for selling by 3 brokerage firms, while 9 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 1 rate it overweight and 15 others recommend it as a buy.
What is U’s price target for the next 12 months?
The current consensus forecast for the stock is between $12.00 and $61.00, with a median target price of $48.00. In analyzing these forecasts, the average price target given by analysts for Unity Software Inc. (U) is $44.65.
