Jacobs Levy Equity Management Inc. Buys 385,938 Shares of Xerox Holdings Co. $XRX

Key Points

• Jacobs Levy Equity Management Inc. increased its stake in Xerox Holdings Co. by 389.8%, acquiring a total of 484,950 shares valued at approximately $2.34 million.
• Xerox reported a significant earnings miss in its latest quarter, with earnings per share at ($0.64), falling short of the expected $0.07.
• The company announced a quarterly dividend of $0.025 per share, yielding 2.8%, scheduled for payment on October 31st to shareholders recorded by September 30th.

Jacobs Levy Equity Management Inc. lifted its holdings in Xerox Holdings Co. (NYSE:XRX - Free Report) by 389.8% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 484,950 shares of the information technology services provider's stock after buying an additional 385,938 shares during the quarter. Jacobs Levy Equity Management Inc. owned approximately 0.39% of Xerox worth $2,342,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the business. Federated Hermes Inc. grew its position in shares of Xerox by 2,035.4% in the 1st quarter. Federated Hermes Inc. now owns 3,682,002 shares of the information technology services provider's stock worth $17,784,000 after buying an additional 3,509,574 shares during the period. Charles Schwab Investment Management Inc. grew its position in shares of Xerox by 14.0% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 2,066,576 shares of the information technology services provider's stock worth $9,982,000 after buying an additional 254,474 shares during the period. Invesco Ltd. grew its position in shares of Xerox by 7.7% in the 1st quarter. Invesco Ltd. now owns 1,836,657 shares of the information technology services provider's stock worth $8,871,000 after buying an additional 130,571 shares during the period. Northern Trust Corp grew its position in shares of Xerox by 7.7% in the 4th quarter. Northern Trust Corp now owns 1,405,471 shares of the information technology services provider's stock worth $11,848,000 after buying an additional 100,900 shares during the period. Finally, Paradigm Capital Management Inc. NY grew its position in shares of Xerox by 2,392.4% in the 1st quarter. Paradigm Capital Management Inc. NY now owns 1,246,200 shares of the information technology services provider's stock worth $6,019,000 after buying an additional 1,196,200 shares during the period. 85.36% of the stock is owned by hedge funds and other institutional investors.

Xerox Stock Performance

XRX traded down $0.02 during midday trading on Friday, hitting $3.68. 3,647,820 shares of the company traded hands, compared to its average volume of 4,066,538. The company has a quick ratio of 0.84, a current ratio of 1.11 and a debt-to-equity ratio of 2.61. The firm has a market capitalization of $463.05 million, a PE ratio of -0.34 and a beta of 1.77. The company's 50-day moving average is $4.48 and its 200 day moving average is $4.91. Xerox Holdings Co. has a 52 week low of $3.44 and a 52 week high of $11.29.

Xerox (NYSE:XRX - Get Free Report) last posted 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 negative net margin of 21.24% and a positive return on equity of 7.57%. During the same quarter in the prior year, the firm posted $0.29 EPS. The company's quarterly revenue was down .1% on a year-over-year basis. Xerox has set its FY 2025 guidance at EPS. On average, research analysts expect that Xerox Holdings Co. will post 1.07 EPS for the current year.

Xerox Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, October 31st. Investors of record on Tuesday, September 30th will be issued a $0.025 dividend. This represents a $0.10 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend is Tuesday, September 30th. Xerox's dividend payout ratio is currently -0.87%.

Analyst Ratings Changes

A number of brokerages recently issued reports on XRX. Citigroup began coverage on shares of Xerox in a research note on Monday, August 18th. They issued a "neutral" rating and a $4.50 price target on the stock. Zacks Research upgraded shares of Xerox from a "strong sell" rating to a "hold" rating in a research note on Wednesday, September 3rd. Two investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, Xerox has a consensus rating of "Reduce" and a consensus target price of $6.83.

Insider Transactions at Xerox

In related news, Director A. Scott Letier acquired 29,600 shares of the business's stock in a transaction on Friday, August 1st. The stock was acquired at an average cost of $3.95 per share, with a total value of $116,920.00. Following the acquisition, the director directly owned 58,984 shares in the company, valued at $232,986.80. This represents a 100.74% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Corporate insiders own 1.50% of the company's stock.

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.