Zacks Investment Research downgraded shares of Unisys (NYSE:UIS) from a hold rating to a strong sell rating in a research report sent 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 analysts have also recently commented on the company. BidaskClub raised Unisys from a strong sell rating to a sell rating in a research note on Friday, August 25th. ValuEngine raised Unisys from a hold rating to a buy rating in a research note on Friday, December 1st. Finally, Loop Capital reduced 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 assigned a hold rating, one has given a buy rating and one has issued a strong buy rating to the stock. The stock presently has an average rating of Hold and an average target price of $12.00.

Unisys (NYSE:UIS) traded up $0.45 on Friday, reaching $8.30. The company had a trading volume of 729,697 shares, compared to its average volume of 419,035. The company has a market capitalization of $396.21, a PE ratio of 6.43 and a beta of 1.86. The company has a current ratio of 1.37, a quick ratio of 1.33 and a debt-to-equity ratio of -0.38. Unisys has a 1-year low of $6.90 and a 1-year high of $16.70.

Unisys (NYSE:UIS) last released its earnings results on Monday, October 30th. The information technology services provider reported $0.29 EPS for the quarter, beating the Zacks’ consensus estimate of ($0.58) by $0.87. The business had revenue of $666.30 million for 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 firm’s revenue was down 2.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.41 earnings per share. equities research analysts predict that Unisys will post 1.32 EPS for the current year.

Several large investors have recently made changes to their positions in UIS. Vanguard Group Inc. grew its stake in shares of Unisys by 18.7% during the second quarter. Vanguard Group Inc. now owns 6,715,192 shares of the information technology services provider’s stock valued at $85,954,000 after buying an additional 1,058,172 shares during the last quarter. Neuberger Berman Group LLC bought a new position in shares of Unisys during the second quarter valued at about $12,709,000. Towle & Co. grew its stake in shares of Unisys by 31.0% during the third quarter. Towle & Co. now owns 2,976,222 shares of the information technology services provider’s stock valued at $25,298,000 after buying an additional 704,306 shares during the last quarter. Alliancebernstein L.P. grew its stake in shares of Unisys by 35.6% during the second quarter. Alliancebernstein L.P. now owns 2,400,663 shares of the information technology services provider’s stock valued at $30,728,000 after buying an additional 629,880 shares during the last quarter. Finally, Fairpointe Capital LLC grew its stake in shares of Unisys by 3.9% during the second quarter. Fairpointe Capital LLC now owns 6,021,503 shares of the information technology services provider’s stock valued at $77,075,000 after buying an additional 228,358 shares during the last quarter.

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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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