Barrysmith Mark, the Senior Vice President, Chief Accounting Officer, and Interim Chief Financial Officer at Unity Software Inc . (NYSE:U), recently executed a stock transaction involving the sale of 8,112 shares. This transaction, reported in a recent SEC filing, was valued at approximately $197,770, with shares sold at an average price of $24.38.
The sale was carried out to cover tax withholding obligations associated with the vesting of restricted stock units, as noted in the filing. This automatic "sell to cover" transaction is not considered a discretionary trade by Mark. Following the sale, Mark retains direct ownership of 454,866 shares of Unity Software (ETR:SOWGn).
In other recent news, Unity Software has been maintaining a strong performance with its Q3 revenue reaching $429 million, surpassing the projected range of $415 million to $420 million. The company's adjusted EBITDA also exceeded expectations, reaching $92 million. This strong performance led to an upward revision of its full-year guidance, now set between $1.73 billion and $1.78 billion.
In addition to these financial highlights, Unity Software has also been making strategic changes. The company has canceled the runtime fee and returned to a subscription model with the launch of Unity 6. New executives Steve Collins and Jared Gas are set to start as CTO and CFO respectively in January 2025.
Morgan Stanley (NYSE:MS) has reiterated its Overweight rating and $24.00 price target for Unity Software, expressing optimism about the company's growth prospects. This is particularly in its advertising and Create segments, where a new advertising model is expected to significantly impact the company's Grow business. Unity Software is also planning to integrate its various advertising technology assets into one stack, potentially leading to further operational expense efficiencies.
InvestingPro Insights
Adding context to the recent stock transaction by Unity Software's Senior VP and Interim CFO, Barrysmith Mark, InvestingPro data reveals some interesting insights about the company's current financial position and market performance.
Unity Software's market capitalization stands at $9.68 billion, reflecting its significant presence in the software industry. The company has shown a strong return over the last three months, with a price total return of 35.55%. This recent positive momentum is further emphasized by a 21.81% return over the last month, aligning with the timing of Mark's stock transaction.
InvestingPro Tips highlight that Unity's stock price movements are quite volatile, which could explain the company's varied performance across different timeframes. Despite the recent positive returns, Unity is not profitable over the last twelve months, with a negative P/E ratio of -14.62. However, analysts predict the company will be profitable this year, suggesting a potential turnaround in financial performance.
It's worth noting that Unity's liquid assets exceed short-term obligations, indicating a solid short-term financial position. This factor may provide some reassurance to investors considering the company's current unprofitability.
For readers interested in a more comprehensive analysis, InvestingPro offers 10 additional tips for Unity Software, providing a deeper understanding of the company's financial health and market position.
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