Unity Software Inc. (NYSE: U) stock jumped 8.34% on Friday to $31.31 against a previous-day closing price of $28.90. With 9.17 million shares changed hands, the volume of the stock remained lighter than its average volume of 12.27 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $31.68 whereas the lowest price it dropped to was $29.02. The 52-week range on U shows that it touched its highest point at $119.74 and its lowest point at $21.22 during that stretch. It currently has a 1-year price target of $34.79.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of U was down-trending over the past week, with a drop of -0.16%, but this was up by 12.14% over a month. Three-month performance surged to 6.21% while six-month performance fell -22.48%. The stock lost -72.31% in the past year, while it has gained 9.51% so far this year. A look at the trailing 12-month EPS for U yields -2.69 with Next year EPS estimates of 0.25. For the next quarter, that number is 0.01. This implies an EPS growth rate of -82.90% for this year and 169.40% for next year.
Float and Shares Shorts:
At present, 403.04 million U shares are outstanding with a float of 323.07 million shares on hand for trading. On Oct 13, 2022, short shares totaled 29.13 million, which was 9.70% higher than short shares on Sep 14, 2022. In addition to Mr. John S. Riccitiello as the firm’s CEO, Pres & Exec. Chairman, Mr. David Helgason serves as its Co-Founder & Director.
Through their ownership of 77.88% of U’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 33.45% of U, in contrast to 19.78% held by mutual funds. Shares owned by individuals account for 19.63%. As the largest shareholder in U with 4.50% of the stake, The Vanguard Group, Inc. holds 18,592,841 shares worth 18,592,841. A second-largest stockholder of U, ARK Investment Management LLC, holds 11,326,122 shares, controlling over 2.74% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in U, holding 7,516,577 shares or 1.82% stake. With a 2.28% stake in U, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 9,432,774 shares are owned by the mutual fund manager. The ARK Innovation ETF, which owns about 1.95% of U stock, is the second-largest Mutual Fund holder. It holds 8,060,774 shares valued at 230.46 million. Vanguard Mid Cap Index Fund holds 1.74% of the stake in U, owning 7,205,118 shares worth 205.99 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for U since 27 analysts follow the stock currently. There are 13 analysts who recommend BUY ratings, while 3 suggest SELL ratings. Of the remaining analysts, 10 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With U analysts setting a high price target of $71.00 and a low target of $16.00, the average target price over the next 12 months is $34.87. Based on these targets, U could surge 126.76% to reach the target high and fall by -48.9% to reach the target low. Reaching the average price target will result in a growth of 11.37% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. U will report FY 2022 earnings on 02/01/2024. Analysts have provided yearly estimates in a range of -$0.23 being high and -$0.42 being low. For U, this leads to a yearly average estimate of -$0.35. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Unity Software Inc. surprised analysts by $0.01 when it reported -$0.14 EPS against a consensus estimate of -$0.15. The surprise factor in the prior quarter was $0.03. Based on analyst estimates, the high estimate for the next quarter is $0.06 and the low estimate is -$0.02. The average estimate for the next quarter is thus $0.01.
Summary of Insider Activity:
Insiders traded U stock several times over the past three months with 15 Buys and 8 Sells. In these transactions, 16,343,071 shares were bought while 81,754 shares were sold. The number of buy transactions has increased to 39 while that of sell transactions has risen to 75 over the past year. The total number of shares bought during that period was 30,792,963 while 16,882,607 shares were sold.