Short Interest in Xerox Holdings Co. (NYSE:XRX) Increases By 79,609.1%

Key Points

• Xerox experienced a dramatic increase in short interest, with shares sold short rising by 79,609.1% in July, leading to a total of 21,920,000 shares.
• The company's stock dropped 2.3% to $3.96, with a significant debt-to-equity ratio of 2.61 and a current ratio of 1.11.
• Xerox's quarterly earnings report showed a loss of ($0.64) per share, missing analysts' estimates, while its revenue declined by 0.1% year-over-year.

Xerox Holdings Co. (NYSE:XRX - Get Free Report) saw a large growth in short interest in the month of July. As of July 15th, there was short interest totaling 21,920,000 shares, agrowthof79,609.1% from the June 30th total of 27,500 shares. Based on an average trading volume of 3,940,000 shares, the short-interest ratio is presently 5.6 days. Approximately18.9% of the company's stock are sold short. Approximately18.9% of the company's stock are sold short. Based on an average trading volume of 3,940,000 shares, the short-interest ratio is presently 5.6 days.

Xerox Stock Up 0.5%

XRX stock traded up $0.02 during midday trading on Tuesday, reaching $4.15. 1,197,330 shares of the company's stock traded hands, compared to its average volume of 4,067,167. The company has a market cap of $522.15 million, a price-to-earnings ratio of -0.39 and a beta of 1.80. The firm's fifty day moving average price is $5.26 and its 200-day moving average price is $5.79. The company has a quick ratio of 0.84, a current ratio of 1.11 and a debt-to-equity ratio of 2.61. Xerox has a 52 week low of $3.44 and a 52 week high of $11.42.

Xerox (NYSE:XRX - Get Free Report) last announced its earnings results 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%. Xerox's quarterly revenue was down .1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.29 earnings per share. As a group, sell-side analysts forecast that Xerox will post 1.07 earnings per share for the current fiscal year.

Xerox Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 31st. Stockholders of record on Monday, June 30th were paid a $0.025 dividend. The ex-dividend date was Monday, June 30th. This represents a $0.10 annualized dividend and a dividend yield of 2.4%. Xerox's dividend payout ratio (DPR) is presently -0.87%.

Insider Activity at Xerox

In related news, Director A. Scott Letier bought 25,000 shares of the company's stock in a transaction that occurred on Friday, May 23rd. The shares were bought at an average price of $4.43 per share, for a total transaction of $110,750.00. Following the transaction, the director directly owned 29,384 shares of the company's stock, valued at approximately $130,171.12. The trade was a 570.26% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO John G. Bruno bought 25,000 shares of the company's stock in a transaction that occurred on Friday, May 23rd. The shares were bought at an average price of $4.38 per share, for a total transaction of $109,500.00. Following the transaction, the chief operating officer directly owned 259,775 shares in the company, valued at $1,137,814.50. This trade represents a 10.65% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have purchased 82,300 shares of company stock worth $364,254 over the last quarter. 1.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Xerox

Several large investors have recently modified their holdings of XRX. Raymond James Financial Inc. bought a new position in shares of Xerox in the fourth quarter valued at approximately $208,000. KLP Kapitalforvaltning AS bought a new position in shares of Xerox in the fourth quarter valued at approximately $440,000. LPL Financial LLC boosted its position in shares of Xerox by 13.0% in the fourth quarter. LPL Financial LLC now owns 77,064 shares of the information technology services provider's stock valued at $650,000 after acquiring an additional 8,837 shares during the period. Vanguard Group Inc. boosted its position in shares of Xerox by 1.3% in the fourth quarter. Vanguard Group Inc. now owns 15,763,679 shares of the information technology services provider's stock valued at $132,888,000 after acquiring an additional 199,598 shares during the period. Finally, Norges Bank bought a new position in shares of Xerox in the fourth quarter valued at approximately $1,632,000. Hedge funds and other institutional investors own 85.36% of the company's stock.

Xerox Company Profile

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.