As of Wednesday close, Unity Software Inc.’s (NYSE:U) stock was down -$0.64, moving down -1.88 percent to $33.32. The average number of shares traded per day over the past five days has been 16,948,480 shares. 1 time new highs have been achieved over the past 5 days, with a -$3.50 fall in that time frame. In the last twenty days, the average volume was 10,571,480, while in the previous 50 days, it was 10,688,398.
Since last month, U stock retreated -3.45%. Shares of the company fell to $32.46 on 09/18/23, the lowest level in the past month. A 52-week high of $50.08 was reached on 07/19/23 after having rallying from a 52-week low of $21.22. Since the beginning of this year, U’s stock price has risen by 16.54% or $4.73, and marked a new high 17 times. However, the stock has declined by -33.47% since its 52-week high.
U stock investors should be aware that Unity Software Inc. (U) stock had its last reported insider trading activity 6 days ago on Sep 15. Silver Lake Group, L.L.C., the Director of the company, disposed of 188,007 shares for $36.76 on Sep 15. It resulted in a $6,911,966 divestment by the insider. Sisco Robynne sold 25,768 shares at an average price of $40.00 on Sep 06. The insider now owns 14,700 shares following the transaction. On Sep 06, Director Helgason David sold 12,500 shares at $40.00 apiece. The transaction was valued at $500,004.
Valuation Metrics
The stock’s beta is 2.41. Besides these, the trailing price-to-sales (P/S) ratio of 6.95, the price-to-book (PB) ratio of 3.68.
Financial Health
In the three months ended June 29, Unity Software Inc.’s quick ratio stood at 2.50, while its current ratio was 2.50, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 0.79, and the total debt-to-equity ratio was 0.79. On the profitability front, the trailing twelve-month gross margin is 68.30% percent. In the year ended June 29, EBITDA margin amounted to -45.80%, whereas operating margins totaled -53.10%. Based on annual data, U earned $948.52 million in gross profit and brought in $1.39 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -14.70%. Return on equity (ROE) for the past 12 months was -31.20%.
According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. U’s revenue rose 44.32% to $500.36 million during the quarter, while net income inched up to $533.48 million. While analysts expected Unity Software Inc. to report $0.08 quarterly earnings, the actual figure was $0.25 per share, beating the consensus estimate by 212.50%. During the quarter, the company generated -$80.37 million in EBITDA. The liabilities of Unity Software Inc. were 4.23 billion at the end of its most recent quarter ended June 29, and its total debt was $2.87 billion. The value of shareholders’ equity is $383.46 million.
Technical Picture
This quick technical analysis looks at Unity Software Inc.’s (U) price momentum. With a historical volatility rate of 53.28%, the RSI 9-day stood at 32.72% on 20 September.
With respect to its five-day moving average, the current Unity Software Inc. price is down by -9.51% percent or -$3.50. At present, U shares trade -2.14% below its 20-day simple moving average and +22.64% percent above its 100-day simple moving average. However, the stock is currently trading approximately -23.96% below its SMA50 and -18.01% below its SMA200.
Stochastic coefficient K was 14.77% and Stochastic coefficient D was 21.64%, while ATR was 1.94. Given the Stochastic reading of 11.39% for the 14-day period, the RSI (14) reading has been calculated as 36.60%. As of today, the MACD Oscillator reading stands at -2.45, while the 14-day reading stands at -3.16.
Analyst Ratings
BofA Securities upgraded its rating on Unity Software Inc. (NYSE: U) to a Buy in a note to investors on September 15, 2023. The analysts firm previously had a Neutral rating on the stock.Unity Software Inc. (U) has been rated Overweight by analysts. According to 2 brokerage firms, U is a sell, and 8 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate Unity Software Inc. stock as buy, with 16 recommending it as overweight.
With a median target price of $48.50, the current consensus forecast for the stock is $16.00 – $56.00. Based on these forecasts, analysts predict Unity Software Inc. (U) will achieve an average price target of $45.93.
