Unity Software ( (U) ) has fallen by -8.77%. Read on to learn why.
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Unity Software has experienced a notable decline in its stock price, dropping by 8.77% over the past week. This downward trend follows a series of analyst downgrades and negative sentiment from corporate insiders. Bank of America Securities analyst Omar Dessouky reiterated a Sell rating on Unity Software, setting a price target of $15.00, which is significantly lower than the current trading price. Additionally, BTIG also downgraded the stock to a Sell with a $25.00 price target, contributing to the negative outlook.
The company’s recent earnings report revealed a quarterly revenue of $435 million, which fell short compared to the previous year’s $460.38 million. Despite a reduction in net loss from $291.07 million to $77.64 million, the financial results have not been enough to instill confidence among investors. Insider activity has also been a concern, with a noticeable increase in insiders selling their shares, including a significant sale by Director Tomer Bar-Zeev.
Amidst these challenges, there are some positive developments for Unity Software. Citi analyst Jason Bazinet raised the price target to $44, citing potential benefits from reduced Apple App Store fees due to recent court rulings. However, the overall sentiment remains cautious, with mixed options activity and a steepened put-call skew indicating increased demand for downside protection. Investors are closely watching Unity Software’s upcoming earnings report for further insights into the company’s future performance.