Federated Hermes Inc. Acquires 3,509,574 Shares of Xerox Holdings Co. (NYSE:XRX)

Key Points

• Federated Hermes Inc. increased its stake in Xerox Holdings Co. by 2,035.4% during the 1st quarter, owning approximately 3.68 million shares valued at $17.78 million.
• Xerox reported a significant earnings miss with a quarterly EPS of ($0.64), falling short of estimates by $0.71, and revenues down by 0.1% compared to the previous year.
• The company declared a quarterly dividend of $0.025 per share, resulting in an annual yield of 2.5%, despite a negative dividend payout ratio of -0.95%.

Federated Hermes Inc. raised its holdings in Xerox Holdings Co. (NYSE:XRX - Free Report) by 2,035.4% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 3,682,002 shares of the information technology services provider's stock after acquiring an additional 3,509,574 shares during the quarter. Federated Hermes Inc. owned about 2.93% of Xerox worth $17,784,000 as of its most recent SEC filing.

A number of other large investors also recently made changes to their positions in XRX. Mackenzie Financial Corp boosted its stake in Xerox by 539.0% during the 1st quarter. Mackenzie Financial Corp now owns 108,558 shares of the information technology services provider's stock worth $524,000 after acquiring an additional 91,570 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank boosted its position in Xerox by 29.1% during the 1st quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 35,234 shares of the information technology services provider's stock worth $170,000 after acquiring an additional 7,932 shares during the last quarter. Kovack Advisors Inc. increased its stake in Xerox by 101.9% in the 1st quarter. Kovack Advisors Inc. now owns 124,400 shares of the information technology services provider's stock valued at $601,000 after buying an additional 62,800 shares during the last quarter. Larson Financial Group LLC raised its holdings in Xerox by 331.8% during the first quarter. Larson Financial Group LLC now owns 6,507 shares of the information technology services provider's stock worth $31,000 after acquiring an additional 5,000 shares in the last quarter. Finally, SBI Securities Co. Ltd. increased its holdings in Xerox by 21.6% during the first quarter. SBI Securities Co. Ltd. now owns 17,281 shares of the information technology services provider's stock worth $83,000 after buying an additional 3,066 shares during the last quarter. Institutional investors and hedge funds own 85.36% of the company's stock.

Insider Buying and Selling at Xerox

In related news, Director A. Scott Letier purchased 25,000 shares of the firm's stock in a transaction dated Friday, May 23rd. The stock was bought at an average price of $4.43 per share, with a total value of $110,750.00. Following the completion of the purchase, the director owned 29,384 shares in the company, valued at approximately $130,171.12. This represents a 570.26% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. Also, COO John G. Bruno purchased 25,000 shares of the business's stock in a transaction on Friday, May 23rd. The shares were purchased at an average cost of $4.38 per share, for a total transaction of $109,500.00. Following the transaction, the chief operating officer directly owned 259,775 shares of the company's stock, valued at approximately $1,137,814.50. The trade was a 10.65% increase in their position. The disclosure for this purchase can be found here. In the last quarter, insiders have bought 82,300 shares of company stock valued at $364,254. Insiders own 1.50% of the company's stock.

Xerox Stock Performance

Xerox stock traded up $0.01 during mid-day trading on Tuesday, hitting $4.14. 1,498,024 shares of the company's stock traded hands, compared to its average volume of 4,069,187. The firm has a 50 day simple moving average of $5.26 and a two-hundred day simple moving average of $5.79. The company has a debt-to-equity ratio of 2.61, a current ratio of 1.11 and a quick ratio of 0.84. The stock has a market cap of $520.14 million, a price-to-earnings ratio of -0.39 and a beta of 1.80. Xerox Holdings Co. has a fifty-two week low of $3.44 and a fifty-two week high of $11.42.

Xerox (NYSE:XRX - Get Free Report) last released its earnings results on Thursday, July 31st. The information technology services provider reported ($0.64) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.07 by ($0.71). Xerox had a positive return on equity of 7.57% and a negative net margin of 21.24%. During the same period last year, the business earned $0.29 EPS. The business's quarterly revenue was down .1% on a year-over-year basis. On average, research analysts expect that Xerox Holdings Co. will post 1.07 EPS for the current fiscal year.

Xerox Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, July 31st. Shareholders of record on Monday, June 30th were given a $0.025 dividend. This represents a $0.10 annualized dividend and a yield of 2.4%. The ex-dividend date was Monday, June 30th. Xerox's dividend payout ratio is -0.87%.

Xerox Profile

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.