Stock Traders Buy Large Volume of Put Options on Xerox (NYSE:XRX)

Key Points

• Investors purchased a significant volume of 1,689 put options for Xerox, marking a 1,369% increase in trading compared to the usual volume of 115 put options.
• Xerox reported a loss of $0.64 EPS for the last quarter, missing analyst expectations, and its revenue fell by 0.1% compared to the previous year.
• The company declared a $0.025 quarterly dividend, reflecting an annualized yield of 2.6%, with the ex-dividend date set for September 30th.

Xerox Holdings Co. (NYSE:XRX - Get Free Report) was the recipient of some unusual options trading on Wednesday. Stock investors bought 1,689 put options on the company. Thisisanincreaseofapproximately1,369% compared to the typical daily volume of 115 put options.

Insider Activity at Xerox

In other Xerox news, Director A. Scott Letier acquired 29,600 shares of the business's stock in a transaction that occurred on Friday, August 1st. The stock was bought at an average cost of $3.95 per share, with a total value of $116,920.00. Following the acquisition, the director owned 58,984 shares in the company, valued at approximately $232,986.80. This represents a 100.74% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. 1.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Paradigm Capital Management Inc. NY boosted its holdings in 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. Yousif Capital Management LLC lifted its stake in Xerox by 5.7% in the 1st quarter. Yousif Capital Management LLC now owns 56,907 shares of the information technology services provider's stock worth $275,000 after purchasing an additional 3,091 shares in the last quarter. Deutsche Bank AG lifted its stake in Xerox by 103.8% in the 4th quarter. Deutsche Bank AG now owns 138,852 shares of the information technology services provider's stock worth $1,171,000 after purchasing an additional 70,724 shares in the last quarter. GAMMA Investing LLC lifted its stake in Xerox by 569.7% in the 1st 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. Finally, Janney Montgomery Scott LLC purchased a new stake in Xerox in the 1st quarter worth $72,000. Institutional investors own 85.36% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the stock. Zacks Research raised shares of Xerox from a "strong sell" rating to a "hold" rating in a report on Wednesday. Citigroup assumed coverage on shares of Xerox in a report on Monday, August 18th. They set a "neutral" rating and a $4.50 price objective for the company. Two research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and a consensus price target of $6.83.

Xerox Trading Up 1.0%

Xerox stock traded up $0.04 during trading hours on Friday, reaching $3.92. The stock had a trading volume of 3,497,735 shares, compared to its average volume of 4,060,556. The stock has a market cap of $493.25 million, a PE ratio of -0.36 and a beta of 1.77. Xerox has a 52 week low of $3.44 and a 52 week high of $11.29. 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 company has a fifty day simple moving average of $4.66 and a 200-day simple moving average of $5.06.

Xerox (NYSE:XRX - Get Free Report) last posted its earnings results on Thursday, July 31st. The information technology services provider reported ($0.64) 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 quarter in the previous year, the firm earned $0.29 earnings per share. The business's revenue for the quarter was down .1% on a year-over-year basis. Xerox has set its FY 2025 guidance at EPS. Analysts forecast that Xerox will post 1.07 EPS for the current fiscal year.

Xerox Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 31st. Stockholders of record on Tuesday, September 30th will be paid a $0.025 dividend. This represents a $0.10 annualized dividend and a dividend yield of 2.6%. The ex-dividend date is Tuesday, September 30th. Xerox's dividend payout ratio is -0.87%.

Xerox Company 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.