Unity Software Inc (NYSE:U) shares are trading lower Monday following an analyst downgrade.
What Happened: Piper Sandler analyst Brent Bracelin downgraded Unity Software from an Overweight rating to a Neutral rating and lowered the price target from $48 to $30.
The downgrade comes after multiple analysts lowered price targets on the stock last week in the wake of CEO John Riccitiello's retirement.
Last Monday, Unity announced that Riccitiello would retire as chairman, president and CEO, effective immediately. The announcement came shortly after the company received backlash over changes to its Runtime Fee policy, which were walked back after Unity received pushback from its community of creators.
Unity also reaffirmed its previously announced third-quarter guidance last week. The company is set to report third-quarter financial results after the market close on Nov. 9. Analysts are anticipating earnings of 9 cents per share and revenue of $554.84 million, according to estimates from Benzinga Pro.
It's worth noting that of the 23 analysts covering Unity, only one has a negative rating. The current average price target among analysts is approximately $57.89.
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U Price Action: Unity shares were down 3.39% at $26.25 at the time of publication, according to Benzinga Pro.
Photo: Joshua Woroniecki from Pixabay.