Xerox (NASDAQ:XRX) Stock Passes Above 200 Day Moving Average - Time to Sell?

Key Points

• Xerox shares moved above their 200-day moving average, trading as high as $2.81 before last changing hands at $2.70. The stock’s 200-day average was $2.29.
• Analyst sentiment remains weak, with a consensus rating of “Reduce” and a price target of $2.50. Recent reports include a downgrade to “hold” from Zacks and a reaffirmed “sell” from Weiss Ratings.
• Recent earnings beat expectations, as Xerox reported a loss of $0.11 per share versus the expected $0.20 loss and revenue of $1.85 billion versus $1.78 billion projected. Revenue rose 26.7% year over year, and the company also announced a quarterly dividend of $0.025 per share.

Shares of Xerox Holdings Co. (NASDAQ:XRX - Get Free Report) passed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $2.29 and traded as high as $2.81. Xerox shares last traded at $2.70, with a volume of 1,545,772 shares.

Wall Street Analyst Weigh In

XRX has been the subject of several recent research reports. Zacks Research raised Xerox from a "strong sell" rating to a "hold" rating in a research report on Thursday, April 30th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Xerox in a research report on Monday, April 27th. Two equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Reduce" and a consensus price target of $2.50.

Xerox Stock Performance

The company has a debt-to-equity ratio of 14.04, a quick ratio of 0.85 and a current ratio of 1.18. The stock has a market capitalization of $353.11 million, a P/E ratio of -0.32 and a beta of 2.40. The business has a 50-day moving average price of $2.98 and a 200 day moving average price of $2.29.

Xerox (NASDAQ:XRX - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The information technology services provider reported ($0.11) earnings per share for the quarter, beating analysts' consensus estimates of ($0.20) by $0.09. The company had revenue of $1.85 billion during the quarter, compared to analyst estimates of $1.78 billion. Xerox had a negative return on equity of 12.08% and a negative net margin of 14.09%.The firm's revenue for the quarter was up 26.7% on a year-over-year basis. During the same quarter last year, the company earned ($0.06) EPS. As a group, sell-side analysts forecast that Xerox Holdings Co. will post 0.03 EPS for the current fiscal year.

Xerox Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Tuesday, June 30th will be issued a dividend of $0.025 per share. The ex-dividend date is Tuesday, June 30th. This represents a $0.10 annualized dividend and a dividend yield of 3.7%. Xerox's dividend payout ratio (DPR) is presently -1.20%.

Hedge Funds Weigh In On Xerox

A number of hedge funds have recently bought and sold shares of the company. Goldman Sachs Group Inc. increased its stake in Xerox by 339.3% during the 4th quarter. Goldman Sachs Group Inc. now owns 9,294,446 shares of the information technology services provider's stock valued at $22,028,000 after purchasing an additional 7,178,915 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its stake in shares of Xerox by 32.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,498,232 shares of the information technology services provider's stock worth $8,291,000 after buying an additional 854,119 shares in the last quarter. Geode Capital Management LLC grew its holdings in shares of Xerox by 24.4% during the fourth quarter. Geode Capital Management LLC now owns 2,915,580 shares of the information technology services provider's stock valued at $6,911,000 after buying an additional 571,715 shares during the last quarter. Two Sigma Investments LP grew its holdings in shares of Xerox by 43.2% during the third quarter. Two Sigma Investments LP now owns 2,476,689 shares of the information technology services provider's stock valued at $9,312,000 after buying an additional 746,582 shares during the last quarter. Finally, First Eagle Investment Management LLC increased its position in shares of Xerox by 89.4% during the fourth quarter. First Eagle Investment Management LLC now owns 2,182,500 shares of the information technology services provider's stock valued at $5,173,000 after acquiring an additional 1,030,000 shares in the last quarter. Institutional investors own 85.36% of the company's stock.

Xerox Company Profile

Xerox Holdings Corporation NYSE: XRX is a global provider of document management technology and services. The company designs and manufactures a broad range of multifunction printers, production printers, digital presses and related consumables. In addition to its hardware offerings, Xerox delivers software and workflow automation solutions, managed print services and cloud-based document platforms that help organizations optimize their information-intensive processes.

Founded in 1906 as The Haloid Photographic Company, Xerox pioneered xerographic imaging in the late 1940s, launching the first plain-paper copier in 1959.

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