Anirma Gupta, Unity Software Inc .'s (NYSE:U) Senior Vice President and Chief Legal Officer, recently sold a portion of her holdings in the company, according to a recent SEC filing. The transactions, which occurred on November 25, involved the sale of 10,465 shares of common stock. The shares were sold at prices ranging from $24.37 to $24.84, generating a total of $255,085.
These sales were conducted as part of an automatic process to cover tax withholding obligations linked to the vesting of restricted stock units, as noted in the filing. Following these transactions, Gupta retains direct ownership of 575,811 shares in Unity Software (ETR:SOWGn).
"In other recent news, Unity Software reported strong Q3 earnings with revenue of $429 million, surpassing the projected range of $415 million to $420 million. The company's adjusted EBITDA reached $92 million, exceeding 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, with adjusted EBITDA guidance also rising to $363 million to $368 million.
Unity Software also announced strategic changes, including the cancellation of the runtime fee and a return to a subscription model with the launch of Unity 6. New executives Steve Collins and Jared Gas are set to join the company as CTO and CFO respectively in January 2025.
In recent developments, Morgan Stanley (NYSE:MS) maintained an Overweight rating and $24.00 price target for Unity Software. The firm expressed confidence in the company's growth prospects, particularly in its advertising and Create segments. Unity Software anticipates launching a new advertising model in 2025, which is expected to significantly impact the company's Grow business. Furthermore, the company has introduced a 25% price increase for its largest customers in the Create division, indicating strong pricing power in the mobile gaming market."
InvestingPro Insights
While Anirma Gupta's recent stock sale was part of a routine tax withholding process, it's worth examining Unity Software's current financial position and market performance to provide context for investors.
According to InvestingPro data, Unity Software has shown strong recent momentum, with a significant 21.81% return over the last month and an impressive 35.55% return over the last three months. This positive trend aligns with an InvestingPro Tip indicating that the company has experienced a "Strong return over the last three months."
Despite these recent gains, Unity faces some challenges. The company is not currently profitable, with a negative P/E ratio of -14.62 for the last twelve months as of Q3 2024. However, an InvestingPro Tip suggests that "Analysts predict the company will be profitable this year," which could be a positive sign for investors looking at Unity's future prospects.
It's also noteworthy that Unity's stock price movements are quite volatile, as highlighted by another InvestingPro Tip. This volatility is reflected in the company's year-to-date price total return of -41.26%, contrasting sharply with its recent positive performance.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights, with 10 more tips available for Unity Software. These tips could provide valuable guidance for those considering the stock's potential in light of recent insider transactions and market performance.
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