On September 15, 2023, Silver Lake Group, L.L.C. (Trades, Portfolio), a prominent technology-focused investment firm, executed a significant transaction involving Unity Software Inc. This article provides a comprehensive overview of the transaction, the profiles of both Silver Lake Group and Unity Software Inc, and an analysis of Unity Software's financials and stock performance. The potential implications of this transaction for value investors are also discussed.
Details of the Transaction
Silver Lake Group, L.L.C. (Trades, Portfolio) reduced its stake in Unity Software Inc on September 15, 2023. The transaction involved a share change of -9827, representing a -0.03% change. The transaction was executed at a price of $36.76 per share. Following the transaction, Silver Lake Group holds a total of 34,974,592 shares in Unity Software Inc, representing 8.68% of the firm's portfolio and 9.12% of Unity Software's total shares. The transaction had no significant impact on the firm's portfolio.
Profile of Silver Lake Group, L.L.C. (Trades, Portfolio)
Silver Lake Group, L.L.C. (Trades, Portfolio), established in 1989, is a software-focused investment firm based in Menlo Park, California. The firm has grown significantly over the years, employing over 1,200 people worldwide. Silver Lake Group's investment philosophy is primarily focused on technology and related industries. The firm's top holdings include VMware Inc(VMW, Financial), Endeavor Group Holdings Inc(EDR, Financial), Unity Software Inc(U, Financial), First Advantage Corp(FA, Financial), and N-able Inc(NABL, Financial), with a total equity of $14.81 billion. The firm's primary sectors of investment are Technology and Communication Services.
Overview of Unity Software Inc.
Unity Software Inc, a US-based company, provides a software platform for creating and operating interactive, real-time 3D content. The platform is used across various sectors, including gaming, architecture, animation, and design. The company's business is spread across the United States, Greater China, EMEA, APAC, and Other Americas, with the EMEA region being a key revenue contributor. Unity Software Inc has a market capitalization of $13.93 billion and a current stock price of $36.32.
Analysis of Unity Software Inc.'s Financials
Unity Software Inc's financials reveal a PE percentage of 0.00, indicating the company is currently at a loss. The company's GF Score is 49/100, suggesting poor future performance potential. The company's Financial Strength is ranked 4/10, while its Profitability Rank is 1/10. Unity Software Inc's Growth Rank is 0/10, and its GF Value Rank is 2/10. The company's Piotroski F-Score is 3, and its Altman Z score is 1.61, indicating potential financial distress.
Performance of Unity Software Inc.'s Stock
Unity Software Inc's stock has experienced a -1.2% gain since the transaction and a -51.57% change since its Initial Public Offering (IPO) on September 18, 2020. The stock's year-to-date (YTD) change is 34.92%. The stock's 5-day, 9-day, and 14-day RSI are 40.19, 44.22, and 45.06, respectively. The stock's 6 - 1 month and 12 - 1 month momentum indices are 24.59 and -7.15, respectively.
Comparison with the Largest Guru Holder of Unity Software Inc.
The largest guru holder of Unity Software Inc is Gotham Asset Management, LLC. A comparison of the share percentages held by Silver Lake Group, L.L.C. (Trades, Portfolio) and Gotham Asset Management, LLC will be provided once the data is available.
Conclusion
In conclusion, Silver Lake Group, L.L.C. (Trades, Portfolio)'s recent transaction involving Unity Software Inc represents a significant move by the firm. Despite the reduction in stake, Unity Software Inc remains a substantial part of Silver Lake Group's portfolio. However, given Unity Software Inc's financials and stock performance, value investors should exercise caution. The transaction's impact on the stock and the guru's portfolio will be closely monitored in the coming months.
