Xerox (NASDAQ:XRX) Share Price Crosses Above 200-Day Moving Average - Here's Why

Key Points

• Xerox shares crossed above their 200-day moving average of $2.80, reaching $2.81 before closing at $2.74 on volume of about 2.8 million shares.
• Analyst sentiment remains cautious: Xerox has a consensus “Reduce” rating and an average price target of $4.17, with ratings ranging from Buy to Sell and targets of $2.50 to $5.00.
• The company reported quarterly EPS of $0.38, surpassing the $0.06 consensus estimate, while revenue rose 22% year over year to $1.92 billion. Xerox also declared a quarterly dividend of $0.025 per share, representing a 3.6% annualized yield.

Xerox Holdings Co. (NASDAQ:XRX - Get Free Report) crossed above its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $2.80 and traded as high as $2.81. Xerox shares last traded at $2.74, with a volume of 2,782,329 shares changing hands.

Analysts Set New Price Targets

XRX has been the topic of several recent research reports. Needham & Company LLC set a $5.00 price target on shares of Xerox in a research report on Tuesday, August 18th. Citigroup cut shares of Xerox from a "neutral" rating to a "sell" rating and dropped their price target for the stock from $3.45 to $2.50 in a research note on Thursday, October 8th. Weiss Ratings reissued a "sell (d-)" rating on shares of Xerox in a research report on Friday, July 24th. Finally, Noble Financial assumed coverage on shares of Xerox in a research report on Tuesday, August 18th. They set an "outperform" rating and a $5.00 price objective for the company. One analyst has rated the stock with a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Xerox presently has a consensus rating of "Reduce" and an average target price of $4.17.

Xerox Price Performance

The company has a current ratio of 1.18, a quick ratio of 0.85 and a debt-to-equity ratio of 12.58. The stock has a 50 day simple moving average of $3.08 and a 200-day simple moving average of $2.80. The firm has a market cap of $359.80 million, a PE ratio of -0.37 and a beta of 2.45.

Xerox (NASDAQ:XRX - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The information technology services provider reported $0.38 EPS for the quarter, beating the consensus estimate of $0.06 by $0.32. The business had revenue of $1.92 billion for the quarter, compared to the consensus estimate of $1.90 billion. Xerox had a positive return on equity of 17.61% and a negative net margin of 11.93%. The business's revenue was up 22.0% on a year-over-year basis. During the same period in the previous year, the business earned ($0.64) earnings per share. Equities analysts anticipate that Xerox Holdings Co. will post 0.17 earnings per share for the current fiscal year.

Xerox Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Wednesday, September 30th will be issued a $0.0250 dividend. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $0.10 dividend on an annualized basis and a yield of 3.6%. Xerox's payout ratio is currently -1.36%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Squarepoint Ops LLC raised its position in shares of Xerox by 0.6% during the second quarter. Squarepoint Ops LLC now owns 584,825 shares of the information technology services provider's stock valued at $1,831,000 after buying an additional 3,689 shares during the last quarter. Vontobel Holding Ltd. lifted its holdings in shares of Xerox by 41.5% in the third quarter. Vontobel Holding Ltd. now owns 22,840 shares of the information technology services provider's stock worth $72,000 after buying an additional 6,700 shares in the last quarter. Integrated Wealth Concepts LLC bought a new position in shares of Xerox during the second quarter worth $28,000. Gamco Investors INC. ET AL boosted its position in shares of Xerox by 1.8% during the first quarter. Gamco Investors INC. ET AL now owns 564,000 shares of the information technology services provider's stock worth $728,000 after acquiring an additional 9,800 shares during the last quarter. Finally, Gabelli Funds LLC grew its stake in Xerox by 17.2% during the first quarter. Gabelli Funds LLC now owns 68,000 shares of the information technology services provider's stock valued at $88,000 after acquiring an additional 10,000 shares in the last quarter. 85.36% of the stock is currently owned by institutional investors.

Xerox Company Profile

Xerox Holdings Corporation NASDAQ: XRX is a technology company that provides workplace technology, document management and business process services. Its offerings include office printers and multifunction devices, production printing systems, digital document solutions, workflow automation, and related software and services.

The company also provides managed print services, IT services and digital workplace solutions designed to help organizations manage communications, documents and work processes.

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