Xerox (NASDAQ:XRX) Stock Breaks Above 200 Day Moving Average - What's Next?

Key Points

• Xerox shares rose above their 200-day moving average, reaching $3.51 before closing at $3.32, compared with the 200-day average of $2.61.
• Analyst sentiment remains mixed: the stock has a consensus “Hold” rating and a $4.48 price target, with targets ranging from $3.45 to $5.00.
• Xerox reported quarterly EPS of $0.38, well above the $0.06 consensus estimate, while revenue increased 22% year over year to $1.92 billion. The company also declared a $0.025 quarterly dividend, representing a 3.0% annualized yield.

Xerox Holdings Co. (NASDAQ:XRX - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $2.61 and traded as high as $3.51. Xerox shares last traded at $3.32, with a volume of 1,865,531 shares.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on XRX shares. 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. Noble Financial initiated coverage on Xerox in a report on Tuesday, August 18th. They set 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 report on Tuesday, August 18th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Xerox in a report on Friday, July 24th. One research 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's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $4.48.

Xerox Stock Down 0.3%

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 stock has a market capitalization of $435.98 million, a P/E ratio of -0.45 and a beta of 2.42. The stock's fifty day moving average is $3.11 and its two-hundred day moving average is $2.61.

Xerox (NASDAQ:XRX - Get Free Report) last posted its quarterly earnings results 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. Xerox had a positive return on equity of 17.61% and a negative net margin of 11.93%.The company had revenue of $1.92 billion for the quarter, compared to analysts' expectations of $1.90 billion. During the same quarter in the prior year, the company earned ($0.64) earnings per share. The firm's revenue was up 22.0% on a year-over-year basis. As a group, research analysts predict that Xerox Holdings Co. will post 0.17 earnings per share for the current fiscal year.

Xerox Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Wednesday, September 30th will be given a dividend of $0.0250 per share. 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 3.0%. Xerox's payout ratio is -1.36%.

Hedge Funds Weigh In On Xerox

A number of hedge funds and other institutional investors have recently modified their holdings of XRX. BRC Group Holdings Inc. purchased a new stake in Xerox during the second quarter valued at about $35,013,000. Paradigm Capital Management Inc. NY purchased a new position in shares of Xerox in the second quarter worth approximately $5,626,000. Squarepoint Ops LLC raised its holdings 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 acquiring an additional 3,689 shares during the period. BW Gestao de Investimentos Ltda. acquired a new stake in shares of Xerox during the fourth quarter valued at approximately $1,659,000. Finally, Bank of New York Mellon Corp purchased a new stake in shares of Xerox in the 2nd quarter valued at approximately $1,313,000. Institutional investors and hedge funds own 85.36% of the company's stock.

Xerox Company Profile

Xerox Holdings Corporation NASDAQ: XRX is a workplace technology and document management company that provides hardware, software and services for managing information and business processes. Its offerings include office printers, multifunction printers, production printers, digital printing systems and related supplies and support services.

The company also provides managed print services, document workflow solutions, content management tools and information technology services. These offerings are designed to help organizations digitize documents, automate workflows, improve communications and manage printing and other workplace processes.

Xerox traces its origins to the Haloid Company, founded in 1906.

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