In recent activity disclosed in a regulatory filing, The Felix, Senior Vice President of Product & Technology, Grow at Unity Software Inc . (NYSE:U), 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, amounting to a total value of $285,794.
These sales were conducted automatically to cover tax withholding obligations related to the vesting of restricted stock units, as noted in the filing. Following these transactions, The Felix retains ownership of 411,960 shares in Unity Software (ETR:SOWGn).
"In other recent news, Unity Software has reported robust Q3 results, posting a revenue of $429 million, which exceeded the projected range of $415 million to $420 million. The company's adjusted EBITDA reached $92 million, surpassing the expected $75 million to $80 million. In light of these results, Unity Software 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 will assume the roles of CTO and CFO respectively in January 2025.
Morgan Stanley (NYSE:MS) reiterated its Overweight rating and $24.00 price target for Unity Software, expressing optimism about the company's growth prospects, particularly in its advertising and Create segments. The firm also highlighted Unity's unique position in the market, with its game engine software being used to build 3.5 billion apps downloaded monthly.
Lastly, Unity Software is developing a new advertising model expected to launch in 2025, which aims to capitalize on the company's scale and data. The company also plans to integrate its various advertising technology assets into one stack, potentially leading to further operational expense efficiencies."
InvestingPro Insights
Unity Software Inc . (NYSE:U) has been experiencing significant market movements recently, as reflected in the InvestingPro data. The company's stock has shown strong returns over the last week, month, and three months, with a 21.31%, 21.81%, and 35.55% price total return respectively. This upward trend aligns with the recent insider activity, where The Felix, Senior Vice President of Product & Technology, sold shares to cover tax obligations.
Despite the recent positive stock performance, Unity faces some challenges. According to InvestingPro Tips, analysts anticipate a sales decline in the current year, which could impact the company's financial outlook. Additionally, the stock price movements are noted to be quite volatile, which investors should consider when evaluating Unity's shares.
On the financial front, Unity's market capitalization stands at $9.68 billion, with a revenue of $1.97 billion over the last twelve months as of Q3 2024. However, the company is not currently profitable, with an operating income of -$615.08 million for the same period. This aligns with another InvestingPro Tip indicating that Unity has not been profitable over the last twelve months.
For investors seeking more comprehensive analysis, InvestingPro offers additional insights, with 10 more tips available for Unity Software. These tips can provide a deeper understanding of the company's financial health and market position.
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