Unisys (NYSE:UIS) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research 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 research firms have also recently weighed in on UIS. ValuEngine upgraded Unisys from a “buy” rating to a “strong-buy” rating in a report on Tuesday. BidaskClub upgraded Unisys from a “strong sell” rating to a “sell” rating in a report on Friday, August 25th. Finally, Loop Capital lowered their price target on Unisys from $12.00 to $9.00 and set a “hold” rating for the company in a report on Tuesday, October 31st. Two equities research analysts have rated the stock with a sell rating, one has issued a hold rating, one has issued a buy rating and one has issued a strong buy rating to the company’s stock. Unisys has an average rating of “Hold” and an average price target of $12.00.

Shares of Unisys (UIS) remained flat at $$7.85 on Friday. The company’s stock had a trading volume of 338,000 shares, compared to its average volume of 702,821. The firm has a market capitalization of $396.21, a price-to-earnings ratio of 6.43 and a beta of 1.86. The company has a debt-to-equity ratio of -0.38, a quick ratio of 1.33 and a current ratio of 1.37. Unisys has a one year low of $6.90 and a one year high of $16.70.

Unisys (NYSE:UIS) last released its quarterly earnings results on Monday, October 30th. The information technology services provider reported $0.29 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.58) by $0.87. The business had revenue of $666.30 million during the quarter, compared to analysts’ expectations 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 was down 2.5% compared to the same quarter last year. During the same period in the prior year, the business posted $0.41 EPS. equities analysts predict that Unisys will post 1.39 earnings per share for the current fiscal year.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in UIS. Stifel Financial Corp purchased a new position in Unisys during the 2nd quarter valued at about $141,000. Cigna Investments Inc. New purchased a new position in Unisys during the 2nd quarter valued at about $148,000. Bayesian Capital Management LP purchased a new position in Unisys during the 2nd quarter valued at about $157,000. BNP Paribas Arbitrage SA boosted its holdings in Unisys by 117.6% during the 2nd quarter. BNP Paribas Arbitrage SA now owns 19,142 shares of the information technology services provider’s stock valued at $245,000 after acquiring an additional 10,345 shares during the period. Finally, Thompson Davis & CO. Inc. boosted its holdings in Unisys by 4,549.0% during the 2nd quarter. Thompson Davis & CO. Inc. now owns 23,245 shares of the information technology services provider’s stock valued at $298,000 after acquiring an additional 22,745 shares during the period.

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Unisys Company Profile

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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