Shlomo Dovrat, a director at Unity Software Inc . (NYSE:U), has recently executed a series of stock transactions, as disclosed in an SEC filing. On November 18 and 19, Dovrat sold shares totaling approximately $2.15 million. The transactions involved the sale of 3,750 shares at $17.99 each and additional sales totaling 114,856 shares at $19.04 each.
The sales were carried out through various entities associated with Dovrat, including Viola Ventures III, L.P., Viola Ventures GP 3 Ltd., and VP Partners III (Israel) and (Cayman), L.P. These transactions resulted in the complete divestment of shares from some of these entities.
The filing also details other non-cash transactions involving the distribution of shares to partners and entities entitled to carried interest, though these did not involve any monetary consideration.
In other recent news, Unity Software (ETR:SOWGn) has reported robust Q3 results, surpassing the projected revenue range of $415 million to $420 million, with an actual revenue of $429 million. The company's adjusted EBITDA also exceeded expectations, reaching $92 million. These strong results led to an upward revision of its full-year guidance, now estimated between $1.73 billion and $1.78 billion for revenue and $363 million to $368 million for adjusted EBITDA.
Morgan Stanley (NYSE:MS) maintains its Overweight rating and $24.00 price target for Unity Software, expressing optimism about the company's growth prospects in its advertising and Create segments. The company's CEO, Matt Bromberg, recently discussed the anticipated 2025 launch of a new advertising model which is expected to significantly impact the company's growth trajectory.
Unity Software, which powers approximately 70% of the mobile gaming industry, recently implemented a 25% price increase for its largest customers and introduced the next-generation Unity 6 engine. The company expects continued double-digit growth in subscription revenue, despite a stable number of subscribers.
Unity Software has also 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 has welcomed new executives Steve Collins and Jared Gas, who are set to start as CTO and CFO respectively in January 2025. These recent developments underline Unity's confidence in its growth trajectory and its commitment to expanding its presence in both gaming and non-gaming sectors.
InvestingPro Insights
In light of the recent stock transactions by Unity Software Inc. (NYSE:U) director Shlomo Dovrat, it's worth examining some key financial metrics and insights provided by InvestingPro.
Unity Software, with a market capitalization of $8.76 billion, has shown mixed performance recently. The company's stock has demonstrated strong volatility, which aligns with the significant insider sales we've observed. This volatility is further reflected in Unity's impressive 3-month price total return of 27.09%, contrasting sharply with its year-to-date return of -47.1%.
Despite the recent insider selling, InvestingPro Tips indicate that 6 analysts have revised their earnings upwards for the upcoming period, suggesting some optimism about Unity's future performance. This positive outlook is tempered by the expectation of a sales decline in the current year, as noted by another InvestingPro Tip.
Financially, Unity's position appears somewhat precarious. The company is not profitable over the last twelve months, with a negative P/E ratio of -12.05. However, Unity's liquid assets exceed its short-term obligations, providing some financial flexibility.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips that could provide deeper insights into Unity Software's financial health and market position.
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