Unisys (UIS) Cut to Strong Sell at Zacks Investment Research
Unisys (NYSE:UIS) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Friday.
According to Zacks, “Unisys has significant pension obligations under its U.S. and non-U.S. defined benefit pension plans. Pension liabilities have increased lately and are likely to be a drag on its earnings in the future. The GAAP pension liability is also sensitive to changes in discount rates and a minor increase could significantly increase its pension burden. In addition, Unisys has to continually invest in new technologies to provide a hedge against stiff competition. These incremental investments increase operating expenses, thus squeezing margins and negatively impacting profitability. Foreign currency volatility remains another concern for Unisys due to its significant international presence. The company also underperformed the industry year to date. However, Unisys is concentrating on business opportunities in fewer, more profitable markets in the IT marketplace and is revamping its sales strategy accordingly to improve its margins.”
A number of other analysts have also commented on the company. BidaskClub raised Unisys from a “strong sell” rating to a “sell” rating in a report on Friday, August 25th. ValuEngine raised Unisys from a “hold” rating to a “buy” rating in a report on Friday, December 1st. Finally, Loop Capital cut their target price on Unisys from $12.00 to $9.00 and set a “hold” rating on the stock in a research note on Tuesday, October 31st. Two investment analysts have rated the stock with a sell rating, one has given a hold rating, one has assigned a buy rating and one has given a strong buy rating to the company. The company currently has an average rating of “Hold” and a consensus price target of $12.00.
Unisys (NYSE:UIS) last issued its quarterly earnings data on Monday, October 30th. The information technology services provider reported $0.29 EPS for the quarter, topping analysts’ consensus estimates of ($0.58) by $0.87. The firm had revenue of $666.30 million during the quarter, compared to analyst estimates of $637.10 million. Unisys had a negative return on equity of 5.32% and a negative net margin of 4.30%. The company’s revenue for the quarter was down 2.5% on a year-over-year basis. During the same period in the previous year, the company posted $0.41 EPS. research analysts forecast that Unisys will post 1.39 earnings per share for the current year.
Several hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. boosted its stake in shares of Unisys by 18.7% in the 2nd quarter. Vanguard Group Inc. now owns 6,715,192 shares of the information technology services provider’s stock worth $85,954,000 after buying an additional 1,058,172 shares during the last quarter. Fairpointe Capital LLC boosted its stake in shares of Unisys by 3.9% in the 2nd quarter. Fairpointe Capital LLC now owns 6,021,503 shares of the information technology services provider’s stock worth $77,075,000 after buying an additional 228,358 shares during the last quarter. JPMorgan Chase & Co. boosted its stake in shares of Unisys by 2.7% in the 2nd quarter. JPMorgan Chase & Co. now owns 4,881,766 shares of the information technology services provider’s stock worth $62,488,000 after buying an additional 128,320 shares during the last quarter. Towle & Co. boosted its stake in shares of Unisys by 31.0% in the 3rd quarter. Towle & Co. now owns 2,976,222 shares of the information technology services provider’s stock worth $25,298,000 after buying an additional 704,306 shares during the last quarter. Finally, Alliancebernstein L.P. boosted its stake in shares of Unisys by 35.6% in the 2nd quarter. Alliancebernstein L.P. now owns 2,400,663 shares of the information technology services provider’s stock worth $30,728,000 after buying an additional 629,880 shares during the last quarter.
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Unisys Corporation (Unisys) is an information technology (IT) company. The Company operates through two segments: Services and Technology. The Company offers services, which include cloud and infrastructure services, application services and business process outsourcing services. In technology segment, the Company designs and develops software, servers and related products.
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