Xerox (NASDAQ:XRX) Share Price Crosses Above 200 Day Moving Average - Should You Sell?

Key Points

• Xerox shares rose above their 200-day moving average, trading as high as $3.23 before last changing hands at $3.14. The stock’s 200-day average is $2.48, while its 50-day average is $2.96.
• Analyst sentiment remains mixed: MarketBeat reports an overall “Hold” rating and an average price target of $4.48, with targets ranging from $3.45 to $5.00 and one sell rating.
• Xerox beat quarterly earnings expectations, reporting $0.38 EPS versus the $0.06 consensus and $1.92 billion in revenue. The company also announced a quarterly dividend of $0.025 per share, equivalent to a 3.2% annualized yield.

Xerox Holdings Co. (NASDAQ:XRX - Get Free Report) crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $2.48 and traded as high as $3.23. Xerox shares last traded at $3.14, with a volume of 2,769,984 shares changing hands.

Analyst Ratings Changes

A number of brokerages recently weighed in on XRX. Citigroup restated a "neutral" rating and set a $3.45 price objective (up from $2.50) on shares of Xerox in a research note on Friday, July 31st. Needham & Company LLC set a $5.00 price target on shares of Xerox in a research report on Tuesday, August 18th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Xerox in a research report on Friday, July 24th. Finally, Noble Financial began coverage on shares of Xerox in a research report on Tuesday, August 18th. They set an "outperform" rating and a $5.00 target price for the company. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $4.48.

Xerox Stock Down 1.9%

The company has a debt-to-equity ratio of 12.58, a current ratio of 1.18 and a quick ratio of 0.85. The business's fifty day moving average price is $2.96 and its two-hundred day moving average price is $2.48. The stock has a market capitalization of $412.34 million, a PE ratio of -0.43 and a beta of 2.42.

Xerox (NASDAQ:XRX - Get Free Report) last issued its earnings results on Thursday, July 30th. The information technology services provider reported $0.38 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.06 by $0.32. The company had revenue of $1.92 billion during the quarter, compared to analyst estimates of $1.90 billion. Xerox had a positive return on equity of 17.61% and a negative net margin of 11.93%.The firm's quarterly revenue was up 22.0% on a year-over-year basis. During the same quarter last year, the business posted ($0.64) EPS. On average, equities research analysts forecast that Xerox Holdings Co. will post 0.17 EPS for the current fiscal year.

Xerox Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Wednesday, September 30th will be given a $0.025 dividend. The ex-dividend date is Wednesday, September 30th. This represents a $0.10 dividend on an annualized basis and a yield of 3.2%. Xerox's dividend payout ratio is currently -1.36%.

Hedge Funds Weigh In On Xerox

A number of institutional investors have recently bought and sold shares of the business. Goldman Sachs Group Inc. boosted its holdings in shares of Xerox by 339.3% in the 4th quarter. Goldman Sachs Group Inc. now owns 9,294,446 shares of the information technology services provider's stock valued at $22,028,000 after acquiring an additional 7,178,915 shares during the last quarter. Charles Schwab Investment Management Inc. raised its holdings in shares of Xerox by 32.3% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,498,232 shares of the information technology services provider's stock worth $8,291,000 after purchasing an additional 854,119 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of Xerox by 24.4% during the fourth quarter. Geode Capital Management LLC now owns 2,915,580 shares of the information technology services provider's stock worth $6,911,000 after purchasing an additional 571,715 shares during the last quarter. Two Sigma Investments LP lifted its position in Xerox by 43.2% during the third quarter. Two Sigma Investments LP now owns 2,476,689 shares of the information technology services provider's stock valued at $9,312,000 after purchasing an additional 746,582 shares during the period. Finally, First Eagle Investment Management LLC lifted its position in Xerox by 89.4% during the fourth quarter. First Eagle Investment Management LLC now owns 2,182,500 shares of the information technology services provider's stock valued at $5,173,000 after purchasing an additional 1,030,000 shares during the period. 85.36% of the stock is owned by hedge funds and other institutional investors.

About Xerox

Xerox Holdings Corporation NYSE: XRX is a global provider of document management technology and services. The company designs and manufactures a broad range of multifunction printers, production printers, digital presses and related consumables. In addition to its hardware offerings, Xerox delivers software and workflow automation solutions, managed print services and cloud-based document platforms that help organizations optimize their information-intensive processes.

Founded in 1906 as The Haloid Photographic Company, Xerox pioneered xerographic imaging in the late 1940s, launching the first plain-paper copier in 1959.

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