Investors Purchase Large Volume of Put Options on Xerox (NYSE:XRX)

Key Points

• Traders purchased 1,689 put options for Xerox, marking an increase of approximately 1,369% compared to the average volume.
• Director A. Scott Letier acquired 29,600 shares at an average price of $3.95, increasing his position by 100.74%.
• Institutional investors have heavily invested in Xerox, with significant stakes growing by over 500% among several hedge funds in the first quarter.

Xerox Holdings Co. (NYSE:XRX - Get Free Report) saw unusually large options trading on Wednesday. Stock investors bought 1,689 put options on the stock. This is an increase of approximately 1,369% compared to the typical volume of 115 put options.

Insider Transactions at Xerox

In related news, Director A. Scott Letier purchased 29,600 shares of the business's stock in a transaction on Friday, August 1st. The stock was acquired at an average price of $3.95 per share, with a total value of $116,920.00. Following the completion of the acquisition, the director owned 58,984 shares of the company's stock, valued at approximately $232,986.80. This trade represents a 100.74% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Corporate insiders own 1.50% of the company's stock.

Institutional Trading of Xerox

A number of large investors have recently added to or reduced their stakes in the company. Deutsche Bank AG raised its holdings in shares of Xerox by 103.8% during the 4th quarter. Deutsche Bank AG now owns 138,852 shares of the information technology services provider's stock worth $1,171,000 after acquiring an additional 70,724 shares in the last quarter. Gotham Asset Management LLC purchased a new stake in shares of Xerox during the 4th quarter worth approximately $525,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Xerox by 3.6% during the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 66,209 shares of the information technology services provider's stock worth $558,000 after acquiring an additional 2,320 shares in the last quarter. Nuveen Asset Management LLC raised its holdings in shares of Xerox by 6.4% during the 4th quarter. Nuveen Asset Management LLC now owns 997,349 shares of the information technology services provider's stock worth $8,408,000 after acquiring an additional 60,283 shares in the last quarter. Finally, Man Group plc raised its holdings in shares of Xerox by 249.3% during the 4th quarter. Man Group plc now owns 402,359 shares of the information technology services provider's stock worth $3,392,000 after acquiring an additional 287,172 shares in the last quarter. Institutional investors own 85.36% of the company's stock.

Analysts Set New Price Targets

XRX has been the subject of several recent research reports. Citigroup initiated coverage on Xerox in a report on Monday, August 18th. They set a "neutral" rating and a $4.50 price target for the company. Zacks Research raised Xerox from a "strong sell" rating to a "hold" rating in a report on Wednesday, September 3rd. Two investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Xerox presently has a consensus rating of "Reduce" and an average price target of $6.83.

Xerox Price Performance

Shares of Xerox stock traded up $0.11 during trading hours on Friday, hitting $4.10. The company's stock had a trading volume of 30,705,087 shares, compared to its average volume of 4,247,085. The business has a 50 day moving average price of $4.33 and a two-hundred day moving average price of $4.80. Xerox has a 12-month low of $3.44 and a 12-month high of $11.29. The company has a market cap of $515.90 million, a PE ratio of -0.38 and a beta of 1.77. The company has a debt-to-equity ratio of 2.61, a quick ratio of 0.84 and a current ratio of 1.11.

Xerox (NYSE:XRX - Get Free Report) last announced its quarterly earnings data on Thursday, July 31st. The information technology services provider reported ($0.64) EPS for the quarter, missing the consensus estimate of $0.07 by ($0.71). Xerox had a negative net margin of 21.24% and a positive return on equity of 7.57%. During the same period in the previous year, the company earned $0.29 earnings per share. Xerox's revenue was down .1% compared to the same quarter last year. Xerox has set its FY 2025 guidance at EPS. Analysts expect that Xerox will post 1.07 earnings per share for the current fiscal year.

Xerox Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, October 31st. Shareholders of record on Tuesday, September 30th will be issued a dividend of $0.025 per share. This represents a $0.10 annualized dividend and a yield of 2.4%. The ex-dividend date is Tuesday, September 30th. Xerox's dividend payout ratio (DPR) is currently -0.87%.

About Xerox

Xerox Holdings Corporation, together with its subsidiaries, operates as a workplace technology company that integrates hardware, services, and software for enterprises in the Americas, Europe, the Middle East, Africa, India, and internationally. The company operates through two segments, Print and Other; and FITTLE.