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

Key Points

• Xerox shares briefly moved above their 200-day moving average of $2.74, reaching $2.76 before closing at $2.71; the stock was down 1.5% in trading.
• Analyst sentiment remains cautious: Xerox has an average “Reduce” rating, with two Sell, one Hold, and one Buy rating, and a consensus price target of $4.17. Price targets range from $2.50 at Citigroup to $5.00 from Noble Financial and Needham.
• The company exceeded quarterly earnings and revenue expectations, reporting $0.38 EPS and $1.92 billion in revenue, while maintaining a quarterly dividend of $0.025 per share, equivalent to a 3.7% annualized yield.

Xerox Holdings Co. (NASDAQ:XRX - Get Free Report)'s stock price passed above its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $2.74 and traded as high as $2.76. Xerox shares last traded at $2.71, with a volume of 1,735,172 shares trading hands.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the company. Noble Financial assumed coverage on Xerox in a research note on Tuesday, August 18th. They issued an "outperform" rating and a $5.00 price target on the stock. Needham & Company LLC set a $5.00 price objective on Xerox in a research report on Tuesday, August 18th. Citigroup downgraded Xerox from a "neutral" rating to a "sell" rating and dropped their price objective for the company from $3.45 to $2.50 in a report on Thursday. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Xerox in a research report on Friday, July 24th. One investment analyst has rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Xerox has an average rating of "Reduce" and a consensus price target of $4.17.

Xerox Trading Down 1.5%

The stock has a market capitalization of $355.86 million, a PE ratio of -0.37 and a beta of 2.45. The company has a quick ratio of 0.85, a current ratio of 1.18 and a debt-to-equity ratio of 12.58. The business's 50-day moving average is $3.16 and its two-hundred day moving average is $2.74.

Xerox (NASDAQ:XRX - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The information technology services provider reported $0.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.06 by $0.32. The company had revenue of $1.92 billion during the quarter, compared to the consensus estimate of $1.90 billion. Xerox had a negative net margin of 11.93% and a positive return on equity of 17.61%. Xerox's revenue for the quarter was up 22.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.64) earnings per share. On average, analysts anticipate that Xerox Holdings Co. will post 0.17 earnings per share 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 $0.0250 dividend. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $0.10 dividend on an annualized basis and a dividend yield of 3.7%. Xerox's dividend payout ratio is -1.36%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Paradigm Capital Management Inc. NY purchased a new stake in Xerox in the second quarter valued at approximately $5,626,000. Renaissance Technologies LLC boosted its holdings in shares of Xerox by 926.4% in the first quarter. Renaissance Technologies LLC now owns 645,624 shares of the information technology services provider's stock valued at $833,000 after acquiring an additional 582,724 shares during the period. Squarepoint Ops LLC grew 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 worth $1,831,000 after acquiring an additional 3,689 shares during the last quarter. Gamco Investors INC. ET AL increased its holdings in shares of Xerox by 1.8% in the 1st quarter. Gamco Investors INC. ET AL now owns 564,000 shares of the information technology services provider's stock valued at $728,000 after acquiring an additional 9,800 shares during the period. Finally, Bank of New York Mellon Corp acquired a new position in shares of Xerox in the 2nd quarter valued at $1,313,000. Hedge funds and other institutional investors own 85.36% of the company's stock.

About Xerox

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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