Investors Purchase Large Volume of Xerox Put Options (NYSE:XRX)

Key Points

• Investors have shown significant interest in Xerox put options, with a trading volume increase of approximately 1,369%, acquiring 1,689 put options compared to the typical 115.
• Xerox reported a loss of $0.64 per share in its latest earnings announcement, missing analysts' consensus estimates by $0.71 and reflecting a slight revenue decline year-over-year.
• The company recently declared a quarterly dividend of $0.025 per share, translating to an annualized yield of 2.4% with a negative dividend payout ratio of -0.87%.

Xerox Holdings Co. (NYSE:XRX - Get Free Report) saw some unusual options trading on Wednesday. Stock investors purchased 1,689 put options on the stock. Thisrepresentsanincreaseof1,369% compared to the typical daily volume of 115 put options.

Xerox Trading Down 1.2%

NYSE XRX traded down $0.05 on Friday, hitting $4.17. 3,675,441 shares of the stock were exchanged, compared to its average volume of 4,081,715. The company's 50-day moving average price is $5.22 and its two-hundred day moving average price is $5.73. The company has a market capitalization of $524.54 million, a price-to-earnings ratio of -0.39 and a beta of 1.79. Xerox has a 52-week low of $3.44 and a 52-week high of $11.42. The company has a debt-to-equity ratio of 2.61, a current ratio of 1.11 and a quick ratio of 0.84.

Xerox (NYSE:XRX - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The information technology services provider reported ($0.64) earnings per share 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 period last year, the business earned $0.29 EPS. The firm's revenue was down .1% on a year-over-year basis. Research analysts predict that Xerox will post 1.07 EPS for the current year.

Xerox Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, October 31st. Shareholders of record on Tuesday, September 30th will be given a $0.025 dividend. The ex-dividend date is Tuesday, September 30th. This represents a $0.10 dividend on an annualized basis and a yield of 2.4%. Xerox's dividend payout ratio is presently -0.87%.

Insider Transactions at Xerox

In other news, CFO Mirlanda Gecaj acquired 10,000 shares of the business's stock in a transaction dated Friday, May 23rd. The stock was acquired at an average price of $4.41 per share, for a total transaction of $44,100.00. Following the completion of the acquisition, the chief financial officer directly owned 15,956 shares in the company, valued at $70,365.96. This represents a 167.90% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this link. Also, Director A. Scott Letier purchased 29,600 shares of the company's stock in a transaction on Friday, August 1st. The stock was bought at an average cost of $3.95 per share, for a total transaction of $116,920.00. Following the acquisition, the director directly owned 58,984 shares of the company's stock, valued at $232,986.80. This represents a 100.74% increase in their position. The disclosure for this purchase can be found here. Insiders have purchased a total of 117,079 shares of company stock valued at $502,045 in the last quarter. Company insiders own 1.50% of the company's stock.

Institutional Investors Weigh In On Xerox

Institutional investors have recently modified their holdings of the stock. PNC Financial Services Group Inc. raised its position in Xerox by 110.8% during the first quarter. PNC Financial Services Group Inc. now owns 5,539 shares of the information technology services provider's stock valued at $27,000 after acquiring an additional 2,911 shares in the last quarter. Allworth Financial LP increased its stake in shares of Xerox by 137.7% during the 1st quarter. Allworth Financial LP now owns 6,014 shares of the information technology services provider's stock worth $29,000 after purchasing an additional 3,484 shares during the last quarter. Larson Financial Group LLC raised its holdings in shares of Xerox by 331.8% during the 1st quarter. Larson Financial Group LLC now owns 6,507 shares of the information technology services provider's stock valued at $31,000 after purchasing an additional 5,000 shares in the last quarter. Spire Wealth Management acquired a new stake in shares of Xerox in the 2nd quarter valued at $31,000. Finally, GAMMA Investing LLC boosted its holdings in Xerox by 569.7% in the first quarter. GAMMA Investing LLC now owns 7,045 shares of the information technology services provider's stock worth $34,000 after purchasing an additional 5,993 shares in the last quarter. Institutional investors and hedge funds own 85.36% 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.