Unity Software Inc. (NYSE:U) shares are trading higher Tuesday, adding to gains of more than 40% over the past month.
What To Know:
Unity Software shares have climbed throughout December, aided by a broad market rally that followed the Federal Reserve’s December meeting decision to leave interest rates unchanged. Most Fed officials also noted that they anticipate rate cuts in 2024, which would be favorable for growth stocks and may have added to Unity’s stock gains for the month.
Unity also announced a strategic “reset” at the end of November following a challenging period for the company, Reuters reported. The company’s reset plan included a 3.8% workforce reduction of 265 employees, the closure of 14 office locations and a reduction in “full in-office services” to three days per week at most locations.
The stock gained 35% in the two weeks following the company’s reset plan announcement. HSBC analyst Mohammed Khallouf also initiated coverage on Unity Software with a Hold rating and announced a price target of $37 on Dec. 18.
According to data from Benzinga Pro, Unity shares are trading well-above the stock’s 50-day moving average of $30.12, but shares are still significantly below the 52-week high of $50.08.
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U Price Action: According to Benzinga Pro, Unity Software shares were up 7.87% at $42.30 Tuesday afternoon.
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