Why Unisys Corporation (UIS) Looks An Exciting Stock?

Analysts are forecasting revenue to climb 0.7 percent to $752M in the next fiscal quarter, while earnings are seen soaring by nearly -62.29 percent to $0.66 per share. History has shown that shares in Unisys Corporation have gone up on 20 different earnings reaction days and are predicted to add 0.14 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.39 per share, worse than the $0.41, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $755M, better than the $752M analysts expected. Earnings are estimated to increase by -106.7 percent this year, 13.75 percent next year and continue to increase by 9 percent annually for the next 5 years.

Unisys Corporation (UIS) will probably climb 14.11 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $20 price as 12-month high target. This represents a whopping 38.31 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $16.5, which represents a return potential of 14.11 percent when compared to the closing price of the stock of $14.46 on Wednesday, February 13. The lowest price target for the stock is $13 — slightly more than -10.1 percent from UIS’s current share price.

The stock is currently hovering around the first support level of $14.05. Below this, the next support is placed in the zone of $13.63. Till the time, the UIS stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 69.25 on daily chart, which may remain a cause for concern. If the price breaks below $13.63 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $15.02 mark may result into a pull-back move towards $15.57 level.

On 13th of February, Unisys Corporation (NYSE:UIS) shares ended higher after a volatile session. The shares accumulated 1.85 points or 14.67 percent at $14.46 with a light trade volume of 3.103 million shares. After opening the session at $14.57, the shares went as high as $15.163 and as low as $14.19, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $744 million and now has 51.43 million shares outstanding. Unisys Corporation (UIS) stock has gained 13.5 percent of market value in 21 trading days.

UIS stock has a trailing 3-year beta of 1.47, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.08 a share in the trailing twelve months. The stock’s value has surged 24.33 percent year to date (YTD) against a rise of 41.07 percent in 12 month’s time. The company’s shares still trade -30.98 percent away from its 1-year high of $20.95 and 49.07 percent up from 52-week low of $9.70. The average consensus rating on the company is 0, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Unisys Corporation (UIS) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry UIS operates in has an average P/E of 20.65. Its P/E ratio went as low as 6.09X and as high as 33.22 over the 5-year span. Further, it is sporting a 0.26 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.56. 24.1 percent is the gross profit margin for Unisys Corporation and operating margin sits at 9.6 percent. Along with this, the net profit margin is 3.6 percent.

Let’s take a look at some insider activity at Unisys Corporation (NYSE:UIS) and see the pattern. The earliest insider trade took place on 05/09/2018. El Sadany Tarek parted with a total of 0.08 thousand shares of company at average share price of $12.1. The total for the sales was set at $0.91 thousand. After this transaction, the Senior Vice President account balance stood at 27.77 thousand shares. The stock grew 19.5 percent since that insider sale. On 05/09/2018, Renzi Jeffrey, Senior Vice President, sold 8 thousand shares at a price per share of $11.96. This removed 95.68 thousand shares from the insider’s fortune and the stock saw a 20.9 percent rally in value since the news became public. This transaction left 52.3 thousand shares in the Senior Vice President account.

On 05/07/2018, Senior Vice President El Sadany Tarek performed a sale transaction worth $88.04 thousand. This sale at $12.06 each has eliminated 7.3 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 19.9 percent increase since the transaction was reported. The insider now is left with 27.85 thousand shares remaining in the account. Davis Alison, who performs the Director job, sold 10.64 thousand shares for $131.39 thousand. The disposal occurred on 06/02/2017 was priced at $12.35 per share. The share price soared 17.09 percent since the reporting date. Davis Alison now left with a stake of 44.39 thousand UIS stock worth $641.92 thousand after the insider selling.