Unity Software Inc. (NYSE:U) finished Thursday with a subtraction of -$0.78 to close at $33.85, a downside of -2.25 percent. An average of 7,818,580 shares of common stock have been traded in the last five days. There was a gain of $0.01 in the past week, and it reached a new high 3 times over the past 12 months. The last 20 days have seen an average of 9,295,920 shares traded, while the 50-day average volume stands at 12,918,934.
U stock has decreased by -21.88% in the last month. The company shares reached their 1-month lowest point of $32.90 on 08/18/23. With the stock rallying to its 52-week high on 07/19/23, shares of the company touched a low of $21.22 and a high of $50.08 in 52 weeks. It has reached a new high 17 times so far this year and achieved 18.40% or $5.26 in price. In spite of this, the price is down -32.41% 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 11 days ago on Aug 14. In this transaction, the insider spent $2,721,000. Director, Dovrat Shlomo, disposed of 400 shares at a price of $38.50 on Aug 10. The insider now owns more than $15,400 worth of shares. Prior to that, Director Dovrat Shlomo went on to Sale 500 shares at $38.56 each on Aug 09. An amount of $19,280 was transacted.
Valuation Metrics
Unity Software Inc. (U) stock’s beta is 2.44. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 7.06, the price-to-book (PB) ratio at 3.74.
Financial Health
The quick ratio of Unity Software Inc. for the three months ended June 29 was 2.50, and the current ratio was 2.50, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.79 and a total debt to equity ratio of 0.79 for the quarter ending June 29. Unity Software Inc.’s EBITDA margin for the year ending June 29 is -45.80%, while its operating margin for the same period stands at -53.10%. Its gross profit as reported stood at $948.52 million compared to revenue of $1.39 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Unity Software Inc.’s return on assets was -14.10%.
Earnings Surprise
In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$192.16 million in the quarter, while revenues were shrunk -6.24%. The analyst consensus anticipated Unity Software Inc.’s latest quarter earnings to come in at $0.08 per share, but it turned out to be $0.25, a 212.50% surprise. For the quarter, EBITDA amounted to -$80.37 million. Shareholders own equity worth $383.46 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Unity Software Inc. (U) price momentum. RSI 9-day as of the close on 24 August was 25.82%, suggesting the stock is oversold, with historical volatility in this time frame at 26.45%.
As of today, U’s price is $34.29 +0.03% or $0.01 from its 5-day moving average. U is currently trading -21.66% lower than its 20-day SMA and +4.35% higher than its 100-day SMA. However, the stock’s current price level is -12.26% below the SMA50 and +34.01% above the SMA200.
The stochastic %K and %D were 14.40% and 13.96%, respectively, and the average true range (ATR) was 1.64. With the 14-day stochastic at 12.93% and the average true range at 1.84, the RSI (14) stands at 31.64%. The stock has reached -0.47 on the 9-day MACD Oscillator while the 14-day reading was at -1.68.
Analyst Ratings
JMP Securities launched coverage on Unity Software Inc. (NYSE: U) in its analyst report released on June 29, 2023. The firm assigned the stock a Mkt perform rating.
What is U’s price target for the next 12 months?
Analysts predict a range of price targets between $12.00 and $61.00, with a median target of $48.00. Taking a look at these predictions, the average price target given by analysts for Unity Software Inc. (U) stock is $44.91.
