Hsbc Holdings PLC Cuts Stake in Xerox Holdings Co. $XRX

Key Points

• Hsbc Holdings PLC reduced its stake in Xerox Holdings Co. by 71.1% in the 1st quarter, now owning 46,426 shares valued at $224,000.
• Xerox reported a net loss of ($0.64) earnings per share for the latest quarter, missing estimates by ($0.71) and indicating a negative net margin of 21.24%.
• The company has declared a quarterly dividend of $0.025 per share, resulting in an annualized yield of 2.6% set to be paid on October 31st.

Hsbc Holdings PLC lowered its position in Xerox Holdings Co. (NYSE:XRX - Free Report) by 71.1% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 46,426 shares of the information technology services provider's stock after selling 114,485 shares during the period. Hsbc Holdings PLC's holdings in Xerox were worth $224,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also modified their holdings of XRX. Federated Hermes Inc. grew its holdings 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 acquiring an additional 3,509,574 shares during the period. Point72 Asset Management L.P. grew its holdings in Xerox by 2,846.8% during the 4th quarter. Point72 Asset Management L.P. now owns 1,128,973 shares of the information technology services provider's stock valued at $9,517,000 after buying an additional 1,090,661 shares during the last quarter. Nuveen LLC acquired a new stake in Xerox during the 1st quarter valued at $4,765,000. Connor Clark & Lunn Investment Management Ltd. grew its holdings in Xerox by 348.8% during the 1st quarter. Connor Clark & Lunn Investment Management Ltd. now owns 953,827 shares of the information technology services provider's stock valued at $4,607,000 after buying an additional 741,297 shares during the last quarter. Finally, BNP Paribas Financial Markets acquired a new stake in Xerox during the 4th quarter valued at $4,101,000. Institutional investors and hedge funds own 85.36% of the company's stock.

Xerox Trading Down 2.3%

Shares of Xerox stock traded down $0.09 during trading hours on Monday, reaching $3.83. 5,018,863 shares of the company's stock were exchanged, compared to its average volume of 4,066,250. Xerox Holdings Co. has a 52-week low of $3.44 and a 52-week high of $11.29. The firm has a market capitalization of $481.93 million, a price-to-earnings ratio of -0.36 and a beta of 1.77. The company has a fifty day moving average of $4.63 and a 200-day moving average of $4.99. The company has a current ratio of 1.11, a quick ratio of 0.84 and a debt-to-equity ratio of 2.61.

Xerox (NYSE:XRX - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The information technology services provider reported ($0.64) earnings per share for the quarter, missing analysts' consensus estimates of $0.07 by ($0.71). Xerox had a positive return on equity of 7.57% and a negative net margin of 21.24%.The company's quarterly revenue was down .1% compared to the same quarter last year. During the same period in the previous year, the business posted $0.29 EPS. Xerox has set its FY 2025 guidance at EPS. Sell-side analysts forecast that Xerox Holdings Co. will post 1.07 EPS for the current fiscal 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 given a $0.025 dividend. This represents a $0.10 annualized dividend and a dividend yield of 2.6%. The ex-dividend date of this dividend is Tuesday, September 30th. Xerox's dividend payout ratio (DPR) is -0.87%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the company. Zacks Research upgraded Xerox from a "strong sell" rating to a "hold" rating in a report on Wednesday, September 3rd. Citigroup assumed coverage on Xerox in a report on Monday, August 18th. They set a "neutral" rating and a $4.50 target price on the stock. Two analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Xerox presently has a consensus rating of "Reduce" and an average price target of $6.83.

Insider Buying and Selling at Xerox

In other news, Director A. Scott Letier bought 29,600 shares of the business's stock in a transaction that occurred on Friday, August 1st. The shares were acquired at an average cost of $3.95 per share, with a total value of $116,920.00. Following the transaction, the director owned 58,984 shares of the company's stock, valued at $232,986.80. This represents a 100.74% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. Company 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.