Unity Software Insiders Are Selling Big—Should Investors Follow Suit?

Investors, take note: unity Software (U) insiders have been selling shares—and not just a little. According to SEC filings, top executives and directors unloaded shares worth $3.59 million in 2025 alone. But here’s the twist: Some of these sales were pre-planned, while others might hint at deeper concerns. Let’s break it down.

The "Safe" Sale: Carol Carpenter’s $58,800 Disposition

First, let’s address the recent headline-making transaction: On December 1, 2023, Unity’s Chief Marketing Officer, Carol W. Carpenter, sold 2,000 shares at $29.40 per share, pocketing roughly $58,800. The key detail here is that this sale was executed under a Rule 10b5-1 trading plan—a prearranged strategy set up in March 2023. These plans are designed to insulate executives from allegations of insider trading, as they’re created when the seller isn’t in possession of material non-public information.

While Carpenter’s sale isn’t alarming on its own, it’s the context that matters.

The Red Flag: $3.59 Million in Insider Sales in 2025

Looking ahead to 2025, the data gets more concerning. Unity insiders—including directors and top officers—pumped the brakes hard:
- Tomer Bar-Zeev (Director) unloaded 5.65 million shares on March 4, 2025, at prices between $23.40 and $25.15.
- Mark Barrysmith (Officer) sold 305,555 shares in February 2025 at prices up to $26.74.
- David Helgason (Director) offloaded 4.5 million shares at $30.08 in February 2025—a price point that’s since likely dropped.

Add it all up, and insiders sold $3.59 million worth of shares in early 2025. That’s a stark contrast to the usual “buy low, sell high” mantra.

Why This Matters—and Why It Might Not

Here’s where Jim Cramer would lean in: Insider selling can be a red flag, especially when it’s massive and concentrated. Directors like Bar-Zeev, who own large stakes, rarely dump millions of shares unless they’re genuinely worried about the stock’s trajectory.

But there’s a catch:
1. Prearranged Plans: Some sales, like Carpenter’s, are part of 10b5-1 plans. These aren’t inherently bad—they’re just disciplined financial moves.
2. Ownership Context: Insiders still hold 21.84% of Unity’s shares, per the filings. That’s a significant stake, suggesting they still believe in the long-term value.
3. Market Timing: Unity’s stock price fluctuated wildly in 2025. The $30.08 sale by Helgason in February 2025? That’s a high-water mark—meaning insiders might’ve cashed out at a peak.

The Bottom Line: Proceed with Caution

Unity Software is a critical player in the gaming and augmented-reality markets, and its tools power major studios. But when insiders—especially directors—sell in bulk, it’s a heads-up.

Action Items for Investors:
- Watch the stock price: If Unity’s shares keep sliding below $20 (as seen in April 2025 transactions), it could signal broader market skepticism.
- Dig into fundamentals: Unity’s revenue growth and customer retention are key. A dip in cloud-based revenue could validate the insider moves.
- Avoid the panic button: One-off sales under 10b5-1 plans aren’t reasons to sell—massive dumps by directors are.

In Cramer’s words: “When the people who know the company best are selling, you’ve got to ask why. But don’t let fear make you miss the rebound!”

Final Take

Unity’s insider selling is a yellow flag, not a red one—yet. The $3.59 million in sales in 2025 demand attention, but so does the fact that insiders still hold over 20% of the company. Investors should monitor Unity’s earnings reports and competitor dynamics closely. If the stock price stays stubbornly below $20, it might be time to rethink your position. But if the company delivers on its cloud and AI-driven growth promises? Those insiders might just be timing their exits perfectly.

Stay vigilant, stay informed—and never bet against the market’s mood.