Unity Stock Buy Hold or Sell Recommendation

U
 Stock
  

USD 35.32  1.55  4.59%   

Taking into account the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Unity Software is 'Strong Sell'. 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.
  
The advice is provided from Unity Software's buy-and-hold perspective. Also, please take a look at 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. We conduct extensive research on individual companies such as Unity and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Unity Software.

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
Strong Sell

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Not Available
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Reporting Quality (M-Score)

Details
For the selected time horizon Unity Software has a Mean Deviation of 4.45, Standard Deviation of 6.48 and Variance of 42.01
Unity Software recommendation module can be used to check and cross-verify current trade recommendation provided by analysts inspecting the firm's potential to grow using all of fundamental, technical, data market data available at the time. To make sure Unity Software is not overpriced, please validate all Unity Software fundamentals, including its net income, book value per share, and the relationship between the revenue and total debt . Given that Unity Software has a number of shares shorted of 20.46 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 historical volatility and very poor performance
The company reported the annual revenue of 1.11 B. Total Loss to common stockholders was (532.61 M) with gross profit before all taxes, overhead, and interest of 862.33 M.
Unity Software has accumulated about 1.69 B in cash with (111.45 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 5.61.
Roughly 64.0% of the company outstanding shares are owned by institutional investors
Latest headline from news.google.com: Unity Software shares plunge 10 percent on heavy trading volume - Seeking Alpha

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 stock 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-0.0087Value At Risk-8.59
Potential Upside9.69Standard Deviation6.48
   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 originate 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.
Security TypeSharesValue
Zweigdimenna Associates LlcCommon Shares15 K2.3 M
Zweigdimenna Associates LlcCommon Shares25 K2.2 M
Zurcher Kantonalbank Zurich CantonalbankCommon Shares38.6 K1.2 M
Zurcher Kantonalbank Zurich CantonalbankCommon Shares33.1 K1.2 M
Zurcher Kantonalbank Zurich CantonalbankCommon Shares11.5 K1.1 M
Zurcher Kantonalbank Zurich CantonalbankCommon Shares11.7 K1.7 M
Zurcher Kantonalbank Zurich CantonalbankCommon Shares21.7 K2.7 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 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
-0.23
β
Beta against NYSE Composite3.01
σ
Overall volatility
6.55
Ir
Information ratio -0.01

Unity Software Volatility Alert

Unity Software is displaying above-average volatility over the selected time horizon. Investors should scrutinize Unity Software independently to ensure intended market timing strategies are aligned with expectations about Unity Software volatility. 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 stocks 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(0.38) %(0.31) %
Return On Asset(0.13) %(0.14) %
Profit Margin(0.63) %(1.27) %
Operating Margin(0.60) %(5.51) %
Current Valuation16.63 B16.62 B
Shares Outstanding403.04 M571.82 M
Shares Owned by Insiders4.68 %10.09 %
Shares Owned by Institutions63.99 %39.21 %
Number of Shares Shorted20.46 M4.71 M
Price to Book6.97 X9.51 X
Price to Sales10.84 X11.42 X
Revenue1.11 B9.43 B
Gross Profit862.33 M27.38 B
EBITDA(465.53 M)3.9 B
Net Income(532.61 M)570.98 M
Cash and Equivalents1.69 B2.7 B
Cash per Share5.61 X5.01 X
Total Debt1.7 B5.32 B
Debt to Equity0.82 %48.70 %
Current Ratio3.41 X2.16 X
Book Value Per Share7.33 X1.93 K
Cash Flow from Operations(111.45 M)971.22 M
Short Ratio1.58 X4.00 X
Earnings Per Share(2.10) X3.12 X
Price to Earnings To Growth(0.67) X4.89 X
Target Price36.25
Number of Employees5.25 K18.84 K
Beta1.94-0.15
Market Capitalization13.61 B19.03 B
Total Asset4.84 B29.47 B
Z Score4.88.72
Net Asset4.84 B
   Sale by Luis Visoso of 16483 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.

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 Tech Funds Thematic Idea Now

Tech Funds
Tech Funds Theme
Funds or Etfs that invest in companies involved in research, development, testing, or distribution of technologically based goods and services. The Tech Funds 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 Tech Funds Theme or any other thematic opportunities.
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Also, please take a look at 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. You can also try Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

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When running Unity Software price analysis, check to measure Unity Software's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Unity Software is operating at the current time. Most of Unity Software's value examination focuses on studying past and present price action to predict the probability of Unity Software's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Unity Software's price. Additionally, you may evaluate how the addition of Unity Software to your portfolios can decrease your overall portfolio volatility.
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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.
Market Capitalization
13.6 B
Quarterly Revenue Growth YOY
0.128
Return On Assets
(0.13) 
Return On Equity
(0.38) 
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 Unity Software value 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.