Unity Software's Short Interest Falls Amid Declining Peer Average

Unity Software's short interest has fallen 12.63% since its last report, with 26.96 million shares sold short, representing 6.71% of all regular shares available for trading. It would take traders 1.54 days to cover their short positions on average. The company's short interest is lower than its peer group average of 7.18%, indicating a less bearish market sentiment.

Unity Software (U) has seen a significant decrease in its short interest, with the number of shares sold short falling by 12.63% since the last report. As of June 19, 2025, 26.96 million shares are sold short, representing 6.71% of all regular shares available for trading. This marks a decrease from the previous short interest of 31.01 million shares reported on August 15, 2024 [1].

The short interest ratio, also known as the "days to cover ratio," has decreased from 3.2 to 1.54 days. This indicates that it would now take traders approximately 1.54 days to cover their short positions, on average, based on the current trading volume of 9.74 million shares [1].

The drop in short interest suggests a less bearish market sentiment towards Unity Software. The company's short interest ratio of 1.54 is lower than the peer group average of 7.18%, indicating that investors are less pessimistic about the stock's future performance [1].

Key institutional investors, such as Susquehanna International Group LLP, Millennium Management LLC, and D. E. Shaw & Co. Inc., have reported short positions in Unity Software, but these positions are relatively stable compared to the overall decrease in short interest [1].

The recent insider transaction involving Unity Software's director, Shlomo Dovrat, may also have contributed to the change in sentiment. Dovrat sold 15,782 shares of Unity's common stock on June 12, 2025, but he retains a substantial stake in the company, indicating a long-term commitment to the stock [2].

Despite the recent dip in stock price, Unity Software has shown promising growth potential. The company's strategic initiatives, such as the launch of Unity 6 and support for Nintendo Switch 2, indicate a strong future outlook. Additionally, Unity Software's earnings have consistently beaten the Zacks Consensus Estimate over the past four quarters, further bolstering investor confidence [3].

In conclusion, Unity Software's decreased short interest and improved short interest ratio suggest a more bullish market sentiment. While the stock has faced challenges, the company's strategic initiatives and strong financial performance indicate potential for future growth.

References:

[1] https://www.marketbeat.com/stocks/NYSE/U/short-interest/
[2] https://au.investing.com/news/insider-trading-news/unity-software-director-shlomo-dovrat-sells-394707-in-stock-93CH-3892150
[3] https://www.tradingview.com/news/zacks:13bd708a3094b:0-should-you-buy-unity-software-stock-after-a-36-dip-in-a-year/