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

Key Points

• Xerox shares fell below their 200-day moving average, trading as low as $1.57 and last changing hands at $1.66, amid a sharp decline in the stock.
• Although third-quarter adjusted earnings and revenue exceeded analyst expectations, Xerox lowered its 2026 operating-income and free-cash-flow outlooks and suspended dividend payments to preserve cash and reduce debt.
• Analyst sentiment remains negative, with Citigroup downgrading the stock to “sell”; the consensus rating is “Reduce,” with a $4.17 price target. Legal investigations into possible investor disclosures add further uncertainty.

Shares of Xerox Holdings Co. (NASDAQ:XRX - Get Free Report) passed below its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $2.54 and traded as low as $1.57. Xerox shares last traded at $1.66, with a volume of 29,886,392 shares traded.

Key Stories Impacting Xerox

Here are the key news stories impacting Xerox this week:

• Positive Sentiment: Xerox reported third-quarter adjusted earnings above Wall Street expectations, with revenue of approximately $1.87 billion. However, earnings were below the year-ago level and sales declined year over year. Xerox Q3 earnings and revenues surpass estimates
• Positive Sentiment: The company announced a debt exchange covering about $174 million of senior notes due in 2028. Extending maturities to 2030, reducing debt principal and preserving cash could help Xerox manage leverage and near-term liquidity pressures. Xerox debt exchange announcement
• Neutral Sentiment: Law firms including Levi & Korsinsky and Rosen launched investigations into whether Xerox provided materially misleading information, particularly regarding its prior outlook and an IEEPA tariff-receivable benefit. These are announcements of investigations, not findings of wrongdoing, but they add legal and reputational uncertainty. Xerox investigation notice
• Neutral Sentiment: Put-option activity was unusually high, indicating increased hedging or bearish speculation around XRX, although options flow alone does not establish the direction of future performance.
• Negative Sentiment: Xerox cut its 2026 adjusted operating-income outlook by as much as $130 million, only three months after raising the forecast by $105 million. It also reduced its free-cash-flow expectations while maintaining its revenue outlook. Why Xerox stock is falling
• Negative Sentiment: Xerox’s board suspended dividend payments, removing an important source of shareholder income and signaling that conserving cash and reducing debt are higher priorities. Xerox forecast and dividend suspension

Analyst Ratings Changes

XRX has been the subject of several research reports. Citigroup cut shares of Xerox from a "neutral" rating to a "sell" rating and lowered their price objective for the company from $3.45 to $2.50 in a research report on Thursday, October 8th. 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 on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Xerox in a research note on Thursday, October 22nd. Finally, Needham & Company LLC set a $5.00 price objective on Xerox in a research note on Tuesday, August 18th. One analyst has rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Reduce" and a consensus price target of $4.17.

Xerox Stock Down 40.5%

The company has a 50-day moving average of $3.01 and a 200-day moving average of $2.54. 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 company has a market capitalization of $217.99 million, a price-to-earnings ratio of -0.22 and a beta of 2.45.

Xerox (NASDAQ:XRX - Get Free Report) last released its earnings results on Thursday, October 29th. The information technology services provider reported $0.02 EPS for the quarter, topping analysts' consensus estimates of ($0.07) by $0.09. Xerox had a negative net margin of 11.93% and a positive return on equity of 17.61%. The company had revenue of $1.87 billion during the quarter. During the same quarter last year, the business earned $0.20 earnings per share. The firm's revenue for the quarter was down 4.7% on a year-over-year basis. On average, equities analysts predict that Xerox Holdings Co. will post 0.17 earnings per share for the current fiscal year.

Xerox Announces Dividend

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 is Wednesday, September 30th. This represents a $0.10 dividend on an annualized basis and a yield of 6.0%. Xerox's dividend payout ratio is currently -1.36%.

Institutional Trading of Xerox

Several large investors have recently made changes to their positions in XRX. Renaissance Technologies LLC lifted its position in Xerox by 926.4% during the first quarter. Renaissance Technologies LLC now owns 645,624 shares of the information technology services provider's stock valued at $833,000 after purchasing an additional 582,724 shares during the period. Bank of New York Mellon Corp purchased a new position in shares of Xerox during the 2nd quarter valued at about $1,313,000. Paradigm Capital Management Inc. NY acquired a new position in shares of Xerox in the 2nd quarter valued at about $5,626,000. Odyssean LLC lifted its holdings in shares of Xerox by 522.0% in the 2nd quarter. Odyssean LLC now owns 203,988 shares of the information technology services provider's stock valued at $638,000 after buying an additional 171,192 shares during the period. Finally, Headlands Technologies LLC purchased a new stake in shares of Xerox in the second quarter worth about $779,000. 85.36% of the stock is owned by hedge funds and other institutional investors.

About Xerox

Xerox Holdings Corporation NASDAQ: XRX is a technology and workplace solutions company that provides printing, document management and digital services to businesses and other organizations. The company serves customers across a range of industries, including government, education, healthcare, financial services and professional services.

Xerox offers office printers, multifunction devices, production printers and related supplies, software and support services. Its portfolio also includes document workflow and content-management solutions designed to help organizations digitize, automate and manage business processes.

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