Unisys Corporation (UIS) shares are trading at higher $12.48 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $18.75.
To add more color to this target, the company’s high over the last year is $18.13 and the low is $8.22. Over the last 52 weeks, UIS is up 45.62% while the S&P 500 is up 11.51%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, UIS reported a profit of $74.9 million. Unisys Corporation also saw revenues increase to $438.8 million. In addition, UIS has free cash flow of -$418.5 million as of 06-2020. The company’s EBITDA came in at $38.0 million which compares well with its peers.
UIS booked profit margins of 37.20%, its Return on Equity (ROE) is -123.70%, and its Return on Assets is 35.50%. All told, it is clear that, UIS needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. UIS has a short ratio of 13.06 and outstanding shares of 63.01M.
UIS has seen increased volume after this news and investors are putting their support behind the value proposition. Traders will also note the company’s earnings per share came in at -2.46. Unisys Corporation UIS also noted assets of $2.4 billion at the end of the last quarter. Investors should also keep an eye on sector updates as UIS has historically followed its peers on positive news.
All told, Unisys Corporation UIS has strung together solid data and demonstrated underlying fundamentals. At its current valuation, UIS represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Unisys Corporation UIS is now commanding a market cap of 776.63M and a float of 61.45M. UIS is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of UIS stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in UIS, either long or short, and we have not been compensated for this article.