Xerox (NYSE:XRX) Trading Down 2.6% – Here’s Why

Xerox Holdings Co. (NYSE:XRX)’s stock price fell 2.6% on Tuesday . The stock traded as low as $9.16 and last traded at $9.20. 1,264,631 shares traded hands during trading, a decline of 43% from the average session volume of 2,218,857 shares. The stock had previously closed at $9.45.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on XRX shares. StockNews.com upgraded shares of Xerox from a “hold” rating to a “buy” rating in a research report on Monday, December 16th. JPMorgan Chase & Co. cut their target price on Xerox from $11.00 to $8.00 and set an “underweight” rating on the stock in a research note on Wednesday, October 30th. Finally, Morgan Stanley cut their price objective on Xerox from $10.00 to $8.00 and set an “underweight” rating on the stock in a research report on Wednesday, October 30th. Three investment analysts have rated the stock with a sell rating, one has issued a hold rating and one has given a buy rating to the company’s stock. According to data from MarketBeat, Xerox currently has an average rating of “Hold” and an average price target of $9.50.

Xerox Price Performance

The company has a market capitalization of $1.15 billion, a PE ratio of -0.84 and a beta of 1.59. The firm has a fifty day simple moving average of $9.04 and a 200 day simple moving average of $10.40. The company has a debt-to-equity ratio of 2.11, a quick ratio of 0.95 and a current ratio of 1.26.

Xerox (NYSE:XRX) last posted its earnings results on Tuesday, October 29th. The information technology services provider reported $0.25 EPS for the quarter, missing analysts’ consensus estimates of $0.51 by ($0.26). Xerox had a negative net margin of 21.31% and a positive return on equity of 6.60%. The business had revenue of $1.53 billion for the quarter, compared to analysts’ expectations of $1.63 billion. During the same period last year, the business posted $0.46 EPS. The company’s revenue for the quarter was down 7.5% on a year-over-year basis. Equities analysts anticipate that Xerox Holdings Co. will post 1.12 EPS for the current year.

Xerox Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, January 31st. Shareholders of record on Tuesday, December 31st will be given a dividend of $0.25 per share. The ex-dividend date of this dividend is Tuesday, December 31st. This represents a $1.00 annualized dividend and a yield of 10.83%. Xerox’s dividend payout ratio (DPR) is presently -9.06%.

Institutional Trading of Xerox

Several hedge funds have recently modified their holdings of XRX. Pacer Advisors Inc. boosted its stake in Xerox by 33.2% in the third quarter. Pacer Advisors Inc. now owns 16,969,127 shares of the information technology services provider’s stock valued at $176,140,000 after acquiring an additional 4,228,806 shares in the last quarter. Geode Capital Management LLC raised its stake in Xerox by 2.3% in the third quarter. Geode Capital Management LLC now owns 2,808,775 shares of the information technology services provider’s stock valued at $29,161,000 after buying an additional 62,947 shares during the last quarter. Charles Schwab Investment Management Inc. raised its stake in Xerox by 6.7% in the third quarter. Charles Schwab Investment Management Inc. now owns 1,719,607 shares of the information technology services provider’s stock valued at $17,850,000 after buying an additional 107,580 shares during the last quarter. Sound Income Strategies LLC grew its stake in shares of Xerox by 27.9% during the third quarter. Sound Income Strategies LLC now owns 1,033,506 shares of the information technology services provider’s stock worth $10,728,000 after acquiring an additional 225,617 shares during the last quarter. Finally, Advisors Asset Management Inc. increased its holdings in shares of Xerox by 9.5% during the third quarter. Advisors Asset Management Inc. now owns 796,609 shares of the information technology services provider’s stock valued at $8,269,000 after acquiring an additional 69,183 shares in the last quarter. 85.36% of the stock is owned by hedge funds and other institutional investors.

About Xerox

Xerox Holdings Corporation, together with its subsidiaries, operates as a workplace technology company that integrates hardware, services, and software for enterprises in the Americas, Europe, the Middle East, Africa, India, and internationally. The company operates through two segments, Print and Other; and FITTLE.