Unity Software Inc. (U) shares are trading at lower $97.28 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $100.00.
To add more color to this target, the company’s high over the last year is $102.63 and the low is $65.11 while the S&P 500 is up 15.12%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
U booked profit margins of -40.70%. All told, it is clear that, U needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. U has a short ratio of 1.15 and outstanding shares of 263.86M.
U has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 2.08 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -1.09. Investors should also keep an eye on sector updates as U has historically followed its peers on positive news.
All told, Unity Software Inc. U has strung together solid data and demonstrated underlying fundamentals. At its current valuation, U represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Unity Software Inc. U is now commanding a market cap of 25.67B and a float of 251.96M. U is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of U stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in U, either long or short, and we have not been compensated for this article.