In recent activities disclosed in a regulatory filing, The Felix, Senior Vice President of Product & Technology, Grow at Unit Software Inc . (NYSE:), sold a significant portion of the company’s shares. The transactions, executed on November 25, involved the sale of 11,719 shares of common stock at prices ranging from $24.37 to $24.78, for a total value of $285,794.
These sales occurred automatically to cover the tax withholding obligations related to the acquisition of restricted stock units, as stated in the filing. Following these transactions, The Felix retains ownership of 411,960 shares in Unity Software (ETR:).
“In other recent news, Unity Software reported robust third-quarter results, with revenue of $429 million, exceeding the expected range of $415 million to $420 million. The company’s adjusted EBITDA was $92 million, exceeding expectations of $75 million to $80 million. In light of these results, Unity Software has revised its full-year revenue guidance to between $1.73 billion and $1.78 billion, and adjusted EBITDA guidance to $363 million to $368 million.
In addition, Unity Software announced strategic changes including the cancellation of the runtime fee and a return to a subscription model with the launch of Unity 6. The company also welcomed new executives Steve Collins and Jared Gas, who assumed the roles of CTO and CFO, respectively. January 2025.
Morgan Stanley (NYSE:) reiterated its Overweight rating and $24.00 price target on Unity Software, expressing optimism about the company’s growth prospects, especially in the Advertising and Create segments. The company also highlighted Unity’s unique position in the market, using its game engine software to build 3.5 billion apps that are downloaded every month.
Finally, Unity Software is developing a new advertising model expected to launch in 2025 that aims to take advantage of the company’s scale and data. The company also plans to integrate its various ad technology assets into a single stack, potentially leading to further operational cost savings.”
InvestingPro Insights
Unity Software Inc. (NYSE:U) has seen significant market moves lately, as evidenced by InvestingPro data. The company’s shares have posted strong returns over the past week, month and three months, with a total price return of 21.31%, 21.81% and 35.55% respectively. This upward trend is consistent with recent insider activity, with The Felix, Senior Vice President of Product & Technology, selling shares to cover tax liabilities.
Despite recent positive stock performance, Unity faces some challenges. According to InvestingPro Tips, analysts expect a decline in sales in the current year, which could impact the company’s financial prospects. Furthermore, it is noted that stock price movements are quite volatile, which investors should take into account when evaluating Unity stock.
On the financial front, Unity’s market capitalization is $9.68 billion, with revenues of $1.97 billion over the trailing twelve months as of Q3 2024. However, the company is currently unprofitable, with an operating income of -$615, 08 million over the same period. . This lines up with another InvestingPro tip indicating that Unity has not been profitable over the last twelve months.
For investors looking for a more in-depth analysis, InvestingPro offers additional insights, with 10 more tips available for Unity Software. These tips can provide deeper insight into the company’s financial health and market position.
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