Tomer Bar-Zeev, a director at Unity Software Inc . (NYSE:U), recently sold a significant portion of his holdings in the company. According to a regulatory filing, Bar-Zeev divested 250,000 shares of Unity Software (ETR:SOWGn) on November 15, 2024. The shares were sold at a weighted average price of $17.52, with the transaction totaling approximately $4.38 million.
Following this sale, Bar-Zeev retains ownership of 4,248,146 shares through indirect holdings, primarily managed by Agathy Holdings Ltd., where he and his spouse hold directorial roles. Additionally, Bar-Zeev directly holds 1,177,650 shares of Unity Software, as indicated in the filing.
In other recent news, Unity Technologies reported stronger than anticipated third-quarter results, with both revenue and adjusted EBITDA surpassing the company's guidance. The company's Q3 revenue reached $429 million, exceeding the projected range of $415 million to $420 million, while adjusted EBITDA hit $92 million, outperforming the expected $75 million to $80 million. Despite a slight year-over-year decrease, Unity experienced a 1% sequential increase in revenue.
Unity also made significant strategic changes, including the cancellation of the runtime fee and a return to a subscription model, marking the launch of Unity 6. This move aims to stimulate innovation and customer engagement. Additionally, the company announced new hires, including Steve Collins as CTO and Jared Gas as CFO, effective from January 1, 2025.
Unity's full-year revenue guidance has been raised to between $1.73 billion and $1.78 billion, with an increase in adjusted EBITDA guidance to $363 million to $368 million, reflecting the company's confidence in its growth trajectory. The company's focus on enhancing tools and insights aims to expand its presence in both gaming and non-gaming sectors. These recent developments underscore Unity's commitment to maintaining its position as a leading platform provider in the dynamic tech landscape.
InvestingPro Insights
The recent insider sale by Tomer Bar-Zeev comes at a time when Unity Software's stock has experienced significant volatility. According to InvestingPro data, Unity's shares have taken a substantial hit, with a 14.16% decline in the past week and a 21.57% drop over the last month. This downward trend aligns with an InvestingPro Tip highlighting that the stock has fared poorly over the last month.
Despite the recent sell-off, Unity Software maintains a market capitalization of $7.21 billion. The company's financial health shows mixed signals, with liquid assets exceeding short-term obligations, as noted by an InvestingPro Tip. However, Unity is not currently profitable, with a negative P/E ratio of -10.87 for the last twelve months as of Q3 2024.
Interestingly, while the company has faced challenges, InvestingPro Tips reveal that six analysts have revised their earnings upwards for the upcoming period, suggesting potential optimism about Unity's future performance. This contrasts with the company's recent revenue decline of 3.13% over the last twelve months.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights, with 10 more tips available for Unity Software. These tips could provide valuable context for understanding the implications of insider sales and the company's financial outlook.
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