In the preceding three months, 8 analysts have released ratings for Unity Software (NYSE:U), presenting a wide array of perspectives from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 2 | 2 | 1 | 1 |
| Last 30D | 0 | 0 | 0 | 1 | 0 |
| 1M Ago | 1 | 0 | 0 | 0 | 0 |
| 2M Ago | 1 | 2 | 2 | 0 | 1 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $25.75, a high estimate of $33.50, and a low estimate of $14.00. Experiencing a 3.88% decline, the current average is now lower than the previous average price target of $26.79.
Diving into Analyst Ratings: An In-Depth Exploration
The standing of Unity Software among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Tim Nollen | Macquarie | Lowers | Underperform | $14.00 | $20.00 |
| Parker Lane | Stifel | Lowers | Buy | $25.00 | $30.00 |
| Kash Rangan | Goldman Sachs | Lowers | Neutral | $26.00 | $29.00 |
| Mike Hickey | Benchmark | Maintains | Sell | $16.00 | $16.00 |
| Bernie McTernan | Needham | Maintains | Buy | $31.00 | $31.00 |
| Ross Sandler | Barclays | Lowers | Equal-Weight | $27.00 | $28.00 |
| Michael Pachter | Wedbush | Maintains | Outperform | $33.50 | - |
| Michael Pachter | Wedbush | Maintains | Outperform | $33.50 | $33.50 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Unity Software. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Unity Software compared to the broader market.
- Price Targets: Gaining insights, analysts provide estimates for the future value of Unity Software's stock. This comparison reveals trends in analysts' expectations over time.
To gain a panoramic view of Unity Software's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.
Stay up to date on Unity Software analyst ratings.
Delving into Unity Software's Background
Unity Software Inc provides a software platform for creating and operating interactive, real-time 3D content. The platform can be used to create, run, and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. The business is spread across the United States, Greater China, EMEA, APAC, and Other Americas, of which key revenue is derived from the EMEA region. The products are used in the gaming industry, architecture and construction sector, animation industry, and designing sector.
Breaking Down Unity Software's Financial Performance
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Negative Revenue Trend: Examining Unity Software's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -7.99% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: Unity Software's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -63.22%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Unity Software's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -9.14%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): Unity Software's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -4.16%, the company may face hurdles in achieving optimal financial performance.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.7, caution is advised due to increased financial risk.
What Are Analyst Ratings?
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
This article was generated by Benzinga's automated content engine and reviewed by an editor.