Unity Software Inc. (NYSE: U) stock jumped 1.71% on Friday to $36.32 against a previous-day closing price of $35.71. With 19.21 million shares changed hands, the volume of the stock remained heavier than its average volume of 11.7 million shares. During the session, the Software – Application company that operates in wider Technology sector, reached to the highest price of $37.24 whereas the lowest price it dropped to was $35.32. The 52-week range on U shows that it touched its highest point at $50.08 and its lowest point at $21.22 during that stretch. It currently has a 1-year price target of $45.14. Beta for the stock currently stands at 2.41.
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 -3.61%, but this was up by 4.67% over a month. Three-month performance dropped to -12.84% while six-month performance rose 26.37%. The stock lost -3.94% in the past year, while it has gained 27.04% so far this year. A look at the trailing 12-month EPS for U yields -2.84 with Next year EPS estimates of 1.11. For the next quarter, that number is 0.17. This implies an EPS growth rate of -57.20% for this year and 80.19% for next year.
Float and Shares Shorts:
At present, 380.36 million U shares are outstanding with a float of 279.94 million shares on hand for trading. On Aug 30, 2023, short shares totaled 21.21 million, which was 5.53% higher than short shares on Jul 30, 2023. In addition to Mr. John S. Riccitiello as the firm’s CEO, Pres & Exec. Chairman, Mr. David Helgason serves as its Co-Founder & Independent Director.
Through their ownership of 71.58% of U’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 34.47% of U, in contrast to 20.99% held by mutual funds. Shares owned by individuals account for 20.49%. As the largest shareholder in U with 6.07% of the stake, The Vanguard Group, Inc. holds 23,273,165 shares worth 23,273,165. A second-largest stockholder of U, ARK Investment Management LLC, holds 11,935,740 shares, controlling over 3.11% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in U, holding 10,396,221 shares or 2.71% stake. With a 2.15% stake in U, the ARK Innovation ETF is the largest stakeholder. A total of 8,239,252 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.00% of U stock, is the second-largest Mutual Fund holder. It holds 7,685,459 shares valued at 284.9 million. Vanguard Mid Cap Index Fund holds 1.49% of the stake in U, owning 5,703,342 shares worth 211.42 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, U reported revenue of $297.04M and operating income of -$197.67M. The EBITDA in the recently reported quarter was -$155.03M and diluted EPS was -$0.69.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for U since 0 analysts follow the stock currently. 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 $61.00 and a low target of $16.00, the average target price over the next 12 months is $47.15. Based on these targets, U could surge 67.95% to reach the target high and fall by -55.95% to reach the target low. Reaching the average price target will result in a growth of 29.82% 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.
Summary of Insider Activity:
Insiders traded U stock several times over the past three months with 5 Buys and 25 Sells. In these transactions, 1,029,656 shares were bought while 4,323,643 shares were sold. The number of buy transactions has increased to 33 while that of sell transactions has risen to 60 over the past year. The total number of shares bought during that period was 9,547,265 while 4,793,374 shares were sold.