Traders Purchase High Volume of Put Options on Xerox (NYSE:XRX)

Xerox Holdings Co. (NYSE:XRX) was the target of unusually large options trading on Wednesday. Traders purchased 1,689 put options on the stock. This represents an increase of 1,369% compared to the typical daily volume of 115 put options.

Xerox Price Performance

NYSE XRX opened at $9.17 on Friday. 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 has a 52-week low of $8.02 and a 52-week high of $19.78. The business has a 50 day simple moving average of $8.95 and a 200 day simple moving average of $10.35. The stock has a market cap of $1.14 billion, a price-to-earnings ratio of -0.83 and a beta of 1.59.

Xerox (NYSE:XRX) last issued its quarterly earnings data 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). The company had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.63 billion. Xerox had a positive return on equity of 6.60% and a negative net margin of 21.31%. The company’s revenue was down 7.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.46 earnings per share. Analysts anticipate that Xerox will post 1.12 earnings per share for the current fiscal year.

Xerox Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 31st. Stockholders 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 dividend yield of 10.91%. Xerox’s dividend payout ratio is currently -9.06%.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the company. StockNews.com upgraded Xerox from a “hold” rating to a “buy” rating in a report on Thursday. Morgan Stanley decreased their price objective on shares of Xerox from $10.00 to $8.00 and set an “underweight” rating for the company in a report on Wednesday, October 30th. Finally, JPMorgan Chase & Co. cut their target price on shares of Xerox from $11.00 to $8.00 and set an “underweight” rating on the stock in a report on Wednesday, October 30th. Three equities research analysts have rated the stock with a sell rating, one has issued a hold rating and one has given a buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $9.50.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Gladius Capital Management LP acquired a new position in Xerox during the 3rd quarter worth approximately $29,000. US Bancorp DE lifted its position in shares of Xerox by 42.3% in the third quarter. US Bancorp DE now owns 6,353 shares of the information technology services provider’s stock worth $66,000 after purchasing an additional 1,888 shares in the last quarter. nVerses Capital LLC acquired a new position in Xerox during the second quarter worth $78,000. International Assets Investment Management LLC grew its position in Xerox by 938.0% in the third quarter. International Assets Investment Management LLC now owns 8,304 shares of the information technology services provider’s stock valued at $800,000 after purchasing an additional 7,504 shares in the last quarter. Finally, Plato Investment Management Ltd increased its stake in Xerox by 45.0% in the 2nd quarter. Plato Investment Management Ltd now owns 9,346 shares of the information technology services provider’s stock valued at $109,000 after buying an additional 2,899 shares during the last quarter. 85.36% of the stock is currently owned by 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.