Investing

Morgan Stanley Sells Almost all Unity Software (U) Position After Q3 Update

Fintel reports that Morgan Stanley has filed a 13G/A form with the SEC disclosing ownership of 260,571 shares of Unity Software Inc (U). This represents 0.1% of the company.

In their previous filing dated February 11, 2022 they reported 20,095,927 shares and 6.90% of the company, a decrease in shares of 98.70% and a decrease in total ownership of 6.80% (calculated as current – previous percent ownership).

Unity Software provided these highlights in their most recent earnings update:

  • Revenue was $322.9 million, an increase of 13% from the third quarter of 2021.
  • Create Solutions revenue was $128.6 million, an increase of 54%; Operate Solutions revenue was $171.7 million, a decrease of 7%; Strategic Partnerships and Other revenue was $22.6 million, an increase of 28%, each as compared to the third quarter of 2021.
  • Loss from operations was $239.6 million, or 74% of revenue, compared to loss from operations of $126.8 million, or 44% of revenue, in the third quarter of 2021.
  • Non-GAAP loss from operations was $37.4 million, or 12% of revenue, compared to a non-GAAP loss from operations of $6.2 million, or 2% of revenue, in the third quarter of 2021.
  • Basic and diluted net loss per share was $0.84, compared to basic and diluted net loss per share of $0.41 in the third quarter of 2021.
  • Basic and diluted non-GAAP net loss per share was $0.14, compared to basic and diluted non-GAAP net loss per share of $0.03 in the third quarter of 2021.
  • 1,075 customers each generated more than $100,000 of revenue in the trailing 12 months as of September 30, 2022, compared to 973 as of September 30, 2021.
  • Dollar-based net expansion rate as of September 30, 2022 was 111% as compared to 142% as of September 30, 2021.
  • Net cash used in operating activities was $68.8 million for the third quarter of 2022, compared to $43.6 million provided for the same period last year. Free cash flow in the third quarter of 2022 was $(80.8) million, compared to $34.2 million for the same period last ye

What are other large shareholders doing?

Silver Lake Group, L.L.C. holds 34,984,419 shares representing 11.64% ownership of the company. No change in the last quarter.

Sc Us (ttgp), Ltd. holds 27,552,684 shares representing 9.17% ownership of the company. In it’s prior filing, the firm reported owning 24,652,204 shares, representing an increase of 10.53%. The firm decreased its portfolio allocation in U by 24.34% over the last quarter.

Resolute Advisors LLC holds 21,757,521 shares representing 7.24% ownership of the company. In it’s prior filing, the firm reported owning 21,778,521 shares, representing a decrease of 0.10%. The firm decreased its portfolio allocation in U by 9.01% over the last quarter.

Morgan Stanley holds 19,501,013 shares representing 6.49% ownership of the company. In it’s prior filing, the firm reported owning 20,000,048 shares, representing a decrease of 2.56%. The firm decreased its portfolio allocation in U by 65.17% over the last quarter.

Vanguard Group Inc holds 18,470,257 shares representing 6.15% ownership of the company. In it’s prior filing, the firm reported owning 17,279,116 shares, representing an increase of 6.45%. The firm decreased its portfolio allocation in U by 52.85% over the last quarter.

What is the overall institutional sentiment?

There are 900 funds or institutions reporting positions in Unity Software Inc. This is a decrease of 64 owner(s) or 6.64%.

Average portfolio weight of all funds dedicated to Unity Software Inc is 0.5153%, a decrease of 6.5109%. Total shares owned by institutions increased in the last three months by 2.45% to 266,217,947 shares.

Based on this information, institutional sentiment is bearish.

This article originally appeared on Fintel

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