Unisys stock price target raised to $21 from $18 at Sidoti & Co.
6:39 a.m. Feb. 7, 2020
7:27 a.m. Feb. 6, 2020
- By Tomi Kilgore
Unisys's stock rockets toward best day in nearly 11 years after after detailing use of asset sale proceedsShares of Unisys Corp. rocketed 44% toward a 15-month high in active midday trading Thursday, after the information technology company announced , to Science Applications International Corp. . The stock's gain, which is on track to be the biggest since it's record rally of 69% on April 16, 2009, was enough to make the stock the best performer on major U.S. exchanges. Chief Financial Officer Michael Thomson said on a conference call with analysts discussing the deal that $600 million of the proceeds will be applied to required contributions to defined-benefit pension plans over the next three years. He said that will reduce the unfunded pension deficit to about $860 million from $1.9 billion, and decrease the company's net debt leverage to 2.4 times from 4.2 times as of Sept. 30, 2019. "Our intended contribution of the net proceeds to the US pension plans will also effectively eliminate requirements to make cash contributions out of ongoing operations to those plans for the next three years and significantly accelerates our path to being free cash flow positive," Thomson said, according to a FactSet transcript. Unisys also said it plans to fully redeem the $440 million of senior secured notes outstanding. Over the past 12 months, Unisys shares have now gained 21.8%, while the S&P 500 has advanced 22.5%.
Unisys's stock rockets 42% to 15-mo. high, on track for biggest 1-day gain in nearly 11 years
7:06 a.m. Feb. 6, 2020
2:28 a.m. Feb. 6, 2020
- By Tomi Kilgore
Unisys's stock soars after $1.2 billion sale of U.S. Federal businessShares of Unisys Corp. ran up 11.4% in premarket trading Thursday, after the information technology company announced a deal to sell its U.S. Federal business to Science Applications International Corp. for $1.2 billion. SAIC shares were still inactive ahead of the open. Unisys said it plans to use the proceeds to "significantly" improve its balance sheet by paying down debt and reducing pension obligations. Unisys said the transaction multiple of 13-times adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) represents a "significant premium" to Unisys' overall multiple. Separately, Unisys said it has adopted a tax asset protection plan. As part of the plan, the company declared a dividend of one preferred share purchase right for each common share outstanding, payable to shareholders as of Feb. 15. The stock has gained 3.4% over the past three months through Wednesday, while the S&P 500 has hiked up 8.4%.
Unisys's stock soars 16% premarket after sale of U.S. Federal business for $1.2 bln
2:07 a.m. Feb. 6, 2020
Science Applications International to buy Unisys's U.S. Federal business for $1.2 bln
1:39 a.m. Feb. 6, 2020
Unisys started at hold with $13 stock price target at Canaccord Genuity
6:23 a.m. Dec. 19, 2019
Unisys stock price target cut to $17 from $20 at SunTrust RH
2:09 a.m. April 11, 2019