Zacks Investment Research Downgrades Unisys Corp. (UIS) to Hold
Unisys Corp. (NYSE:UIS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Wednesday.
According to Zacks, “Unisys’ third-quarter 2016 adjusted earnings comprehensively beat the Zacks Consensus Estimate by $0.14, although revenues missed. In tune with the evolution in the IT industry, Unisys is aligning its services and solution portfolio by shifting its offerings to cloud-based and software-as-a-service delivery model. Unisys is also focusing on business opportunities in fewer, more profitable sectors in the IT marketplace. The company expects its restructuring efforts to generate about $200 million in annualized savings by the end of 2016 and maintained its earlier guidance. However, foreign currency exposure and continued pension obligations remain headwinds for the company. In addition, Unisys has to continually invest in new technologies which act as value drivers that could provide a hedge against stiff competition. These incremental investments increase operating expenses, thus squeezing margins and negatively impacting profitability.”
Shares of Unisys Corp. (NYSE:UIS) opened at 11.95 on Wednesday. The company’s 50-day moving average price is $10.03 and its 200 day moving average price is $8.94. Unisys Corp. has a 52 week low of $6.72 and a 52 week high of $13.65. The firm’s market cap is $598.49 million.
Unisys Corp. (NYSE:UIS) last announced its quarterly earnings results on Tuesday, October 25th. The company reported ($0.56) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.87) by $0.31. The company earned $683.30 million during the quarter, compared to the consensus estimate of $673.60 million. Unisys Corp. had a negative net margin of 1.57% and a negative return on equity of 12.78%. The company’s revenue for the quarter was down 7.6% compared to the same quarter last year. During the same period in the prior year, the business earned $0.67 earnings per share. On average, equities analysts anticipate that Unisys Corp. will post ($0.79) earnings per share for the current year.
In other news, Director Nathaniel A. Davis sold 38,200 shares of the company’s stock in a transaction on Thursday, August 18th. The shares were sold at an average price of $10.43, for a total transaction of $398,426.00. Following the completion of the transaction, the director now directly owns 3,654 shares in the company, valued at $38,111.22. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 1.00% of the company’s stock.
Several hedge funds and other institutional investors have recently made changes to their positions in the company. Fairpointe Capital LLC increased its position in shares of Unisys Corp. by 0.5% in the second quarter. Fairpointe Capital LLC now owns 6,747,603 shares of the company’s stock valued at $49,122,000 after buying an additional 35,989 shares during the period. Vanguard Group Inc. boosted its stake in shares of Unisys Corp. by 5.8% in the second quarter. Vanguard Group Inc. now owns 4,285,062 shares of the company’s stock valued at $31,194,000 after buying an additional 236,672 shares in the last quarter. JPMorgan Chase & Co. boosted its stake in shares of Unisys Corp. by 10.2% in the third quarter. JPMorgan Chase & Co. now owns 3,361,200 shares of the company’s stock valued at $32,738,000 after buying an additional 312,230 shares in the last quarter. BlackRock Institutional Trust Company N.A. boosted its stake in shares of Unisys Corp. by 48.4% in the third quarter. BlackRock Institutional Trust Company N.A. now owns 2,511,537 shares of the company’s stock valued at $24,462,000 after buying an additional 819,086 shares in the last quarter. Finally, Royce & Associates LP boosted its stake in shares of Unisys Corp. by 11.9% in the second quarter. Royce & Associates LP now owns 2,320,320 shares of the company’s stock valued at $16,892,000 after buying an additional 246,500 shares in the last quarter.
About Unisys Corp.
Unisys Corporation is an information technology (IT) company. The Company operates through two segments. Its Services segment includes cloud and infrastructure services, application services and business process outsourcing services. In cloud and infrastructure services, it helps clients apply cloud and as-a-service delivery models to manage and secure their IT infrastructure and operations.
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