Shares of Unity Software Inc (NYSE:U) are surging 10.7% to trade at $47 this morning, after the tech firm posted an impressive third-quarter report. The 25 cents per share on revenue of $622 billion blew past estimates, as well as its fourth-quarter revenue outlook of $683 million. CEO Matt Bromberg noted the third quarter was its strongest performance ever, as its Vector unit grew 126% year-over-year.
Unity Software stock is headed for a fourth-straight gain and its best day since Aug. 6. The shares earlier also tapped their highest level since January. Today's bull gap has placed shares back above the year-to-date breakeven level, though its breakout has been once again thwarted by the $48 mark.
Options traders have been more bullish than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), U's 50-day call/put volume ratio of 4.85 ranks in the 94th percentile of its annual range.
While they've yet to chime in following today's report, analysts have also been heavily optimistic toward the Equity. Twenty of the 24 in coverage sport a "buy" or "strong buy" recommendation heading into today, while the average 12-month price target of $50.73 sits at a nearly 8% premium to current levels.
