Unity Software Stock Buy Hold or Sell Recommendation

U Stock  USD 23.94  0.49  2.01%   
Taking into account the 90-day investment horizon and your typical level of risk aversion, our recommendation regarding Unity Software is 'Hold'. Macroaxis provides Unity Software buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding U positions. The advice algorithm takes into account all of Unity Software's available fundamental, technical, and predictive indicators you will find on this site. Key drivers impacting Unity Software's buy or sell advice are summarized below:
Real Value
27.76
Target Price
43.07
Hype Value
24.05
Market Value
23.94
A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell Unity Software given historical horizon and risk tolerance towards Unity Software. When Macroaxis issues a 'buy' or 'sell' recommendation for Unity Software, the advice is generated through an automated system that utilizes algorithms and statistical models.
  
Check out Unity Software Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more information on how to buy Unity Stock please use our How to Invest in Unity Software guide.
In addition, we conduct extensive research on individual companies such as Unity and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Unity Software. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in employment.

Execute Unity Software Buy or Sell Advice

The Unity recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Unity Software. Macroaxis does not own or have any residual interests in Unity Software or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Unity Software's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Unity SoftwareBuy Unity Software
Hold

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

Under hypedDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

Quite HighDetails

Economic Sensitivity

Actively responds to the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Unity Software has a Risk Adjusted Performance of (0.12), Jensen Alpha of (0.63), Total Risk Alpha of (0.75) and Treynor Ratio of (0.29)
Our trade recommendation module complements current analysts and expert consensus on Unity Software. It analyzes the company potential to grow using all fundamental, technical, and market related data available at the time. To make sure Unity Software is not overpriced, please validate all Unity Software fundamentals, including its number of shares shorted, net income, book value per share, as well as the relationship between the revenue and total debt . Given that Unity Software has a number of shares shorted of 32.17 M, we advise you to double-check Unity Software market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Unity Software Trading Alerts and Improvement Suggestions

Unity Software generated a negative expected return over the last 90 days
Unity Software has high likelihood to experience some financial distress in the next 2 years
The company reported the annual revenue of 2.19 B. Total Loss to common stockholders was (822.01 M) with gross profit before all taxes, overhead, and interest of 951.69 M.
About 72.0% of the company outstanding shares are owned by institutional investors
Latest headline from bizjournals.com: 3D content platform Unity to downsize office space in Bellevue

Unity Software Returns Distribution Density

The distribution of Unity Software's historical returns is an attempt to chart the uncertainty of Unity Software's future price movements. The chart of the probability distribution of Unity Software daily returns describes the distribution of returns around its average expected value. We use Unity Software price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Unity Software returns is essential to provide solid investment advice for Unity Software.
Mean Return
-0.53
Value At Risk
-5.55
Potential Upside
4.42
Standard Deviation
2.69
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Unity Software historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Unity Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Unity Software is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Unity Software backward and forwards among themselves. Unity Software's institutional investor refers to the entity that pools money to purchase Unity Software's securities or originates loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
State Street Corporation2023-09-30
5.6 M
Two Sigma Investments Llc2023-12-31
5.3 M
Contour Asset Management Llc2023-12-31
4.1 M
Geode Capital Management, Llc2023-09-30
3.6 M
Two Sigma Advisers, Llc2023-12-31
3.1 M
Clearbridge Advisors, Llc2023-09-30
2.9 M
Eagle Asset Management, Inc.2023-09-30
2.6 M
Morgan Stanley - Brokerage Accounts2023-09-30
2.6 M
Viola Ventures Vc Management 4 Ltd2023-12-31
2.4 M
Silver Lake Group, L.l.c.2023-12-31
34.7 M
Sc Us (ttgp), Ltd.2023-12-31
27.4 M
Note, although Unity Software's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Unity Software Cash Flow Accounts

201920202021202220232024 (projected)
Investments(219.5M)(481.8M)(1.8B)723.2M44.0M46.2M
Change In Cash(126.2M)1.1B(227.3M)439.1M105.2M100.0M
Free Cash Flow(95.0M)(21.0M)(153.4M)(116.6M)178.8M187.7M
Depreciation31.1M43.0M64.6M211.6M563.9M592.1M
Other Non Cash Items4.6M67.1M26.9M21.4M1.8B1.9B
Capital Expenditures27.0M40.9M41.9M57.1M55.9M47.8M
Net Income(163.2M)(282.3M)(532.6M)(919.5M)(822.0M)(780.9M)
End Period Cash Flow147.1M1.3B1.1B1.5B1.6B1.1B
Change To Netincome44.6M201.5M361.0M573.1M659.0M692.0M

Unity Software Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Unity Software or Software sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Unity Software's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Unity stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.63
β
Beta against NYSE Composite1.86
σ
Overall volatility
2.73
Ir
Information ratio -0.22

Unity Software Volatility Alert

Unity Software exhibits very low volatility with skewness of 0.0 and kurtosis of -0.02. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Unity Software's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Unity Software's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Unity Software Implied Volatility

Unity Software's implied volatility exposes the market's sentiment of Unity Software stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Unity Software's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Unity Software stock will not fluctuate a lot when Unity Software's options are near their expiration.

Unity Software Fundamentals Vs Peers

Comparing Unity Software's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Unity Software's direct or indirect competition across all of the common fundamentals between Unity Software and the related equities. This way, we can detect undervalued stocks with similar characteristics as Unity Software or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Unity Software's fundamental indicators could also be used in its relative valuation, which is a method of valuing Unity Software by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Unity Software to competition
FundamentalsUnity SoftwarePeer Average
Return On Equity-0.23-0.31
Return On Asset-0.0632-0.14
Profit Margin(0.38) %(1.27) %
Operating Margin(0.35) %(5.51) %
Current Valuation10.93 B16.62 B
Shares Outstanding385.94 M571.82 M
Shares Owned By Insiders10.81 %10.09 %
Shares Owned By Institutions71.56 %39.21 %
Number Of Shares Shorted32.17 M4.71 M
Price To Book3.07 X9.51 X
Price To Sales4.47 X11.42 X
Revenue2.19 B9.43 B
Gross Profit951.69 M27.38 B
EBITDA(200.87 M)3.9 B
Net Income(822.01 M)570.98 M
Cash And Equivalents1.69 B2.7 B
Cash Per Share5.61 X5.01 X
Total Debt2.79 B5.32 B
Debt To Equity0.82 %48.70 %
Current Ratio3.41 X2.16 X
Book Value Per Share8.27 X1.93 K
Cash Flow From Operations234.7 M971.22 M
Short Ratio3.38 X4.00 X
Earnings Per Share(2.16) X3.12 X
Price To Earnings To Growth(0.67) X4.89 X
Target Price30.35
Number Of Employees6.75 K18.84 K
Beta2.42-0.15
Market Capitalization9.43 B19.03 B
Total Asset7.24 B29.47 B
Retained Earnings(3.07 B)9.33 B
Working Capital1.43 B1.48 B
Net Asset7.24 B
Note: Sale by Luis Visoso of 3334 shares of Unity Software [view details]

Unity Software Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Unity . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Unity Software Buy or Sell Advice

When is the right time to buy or sell Unity Software? Buying financial instruments such as Unity Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Other Current Liabilities447.3M737.5M653.7M476.3M
Total Assets4.8B7.8B7.2B4.4B

Use Investing Ideas to Build Portfolios

In addition to having Unity Software in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Recreation Thematic Idea Now

Recreation
Recreation Theme
Companies involved in production and services of recreational goods, foods, and accessories. The Recreation theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Recreation Theme or any other thematic opportunities.
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When determining whether Unity Software is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Unity Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Unity Software Stock. Highlighted below are key reports to facilitate an investment decision about Unity Software Stock:
Check out Unity Software Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For more information on how to buy Unity Stock please use our How to Invest in Unity Software guide.
You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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Is Unity Software's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Unity Software. If investors know Unity will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Unity Software listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(2.16)
Revenue Per Share
5.749
Quarterly Revenue Growth
0.351
Return On Assets
(0.06)
Return On Equity
(0.23)
The market value of Unity Software is measured differently than its book value, which is the value of Unity that is recorded on the company's balance sheet. Investors also form their own opinion of Unity Software's value that differs from its market value or its book value, called intrinsic value, which is Unity Software's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Unity Software's market value can be influenced by many factors that don't directly affect Unity Software's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Unity Software's value and its price as these two are different measures arrived at by different means. Investors typically determine if Unity Software is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Unity Software's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.