Xerox (NYSE:XRX) Shares Down 6.1% - Here's Why

Key Points

• Xerox Holdings Co. saw its stock price decline by 6.1% during mid-day trading, with the last traded price at $4.09, significantly below its previous closing of $4.35.
• The company reported negative earnings of ($0.64) per share for the last quarter, missing the consensus estimate by ($0.71), with a negative net margin of 21.24% and a revenue decline of 0.1% year-over-year.
• Xerox declared a quarterly dividend of $0.025 per share, with an annualized yield of 2.4%, set to be paid on October 31st for investors of record on September 30th.

Shares of Xerox Holdings Co. (NYSE:XRX - Get Free Report) were down 6.1% during mid-day trading on Thursday . The company traded as low as $4.08 and last traded at $4.09. Approximately 803,842 shares were traded during mid-day trading, a decline of 80% from the average daily volume of 4,044,404 shares. The stock had previously closed at $4.35.

Analyst Ratings Changes

Separately, Citigroup began coverage on Xerox in a research note on Monday. They set a "neutral" rating and a $4.50 price objective for the company. One analyst has rated the stock with a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Xerox currently has an average rating of "Sell" and an average target price of $6.83.

Xerox Stock Up 2.3%

The company has a quick ratio of 0.84, a current ratio of 1.11 and a debt-to-equity ratio of 2.61. The company has a fifty day moving average price of $5.06 and a 200-day moving average price of $5.42. The stock has a market capitalization of $497.02 million, a P/E ratio of -0.37 and a beta of 1.79.

Xerox (NYSE:XRX - Get Free Report) last posted 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 positive return on equity of 7.57% and a negative net margin of 21.24%.During the same quarter in the previous year, the business earned $0.29 EPS. The firm's revenue was down .1% compared to the same quarter last year. Xerox has set its FY 2025 guidance at EPS. As a group, research analysts forecast that Xerox Holdings Co. will post 1.07 EPS for the current fiscal year.

Xerox Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 31st. Stockholders of record on Tuesday, September 30th will be issued a $0.025 dividend. The ex-dividend date of this dividend is Tuesday, September 30th. This represents a $0.10 dividend on an annualized basis and a dividend yield of 2.5%. Xerox's dividend payout ratio is currently -0.87%.

Insider Buying and Selling at Xerox

In other news, Director A. Scott Letier bought 29,600 shares of the business's stock in a transaction dated Friday, August 1st. The stock was purchased at an average cost of $3.95 per share, with a total value of $116,920.00. Following the acquisition, the director directly owned 58,984 shares in the company, valued at $232,986.80. This trade represents a 100.74% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Mirlanda Gecaj bought 10,000 shares of the stock in a transaction dated Friday, May 23rd. The shares were purchased at an average cost of $4.41 per share, for a total transaction of $44,100.00. Following the completion of the purchase, the chief financial officer owned 15,956 shares in the company, valued at approximately $70,365.96. This represents a 167.90% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last 90 days, insiders have acquired 117,079 shares of company stock valued at $502,045. 1.50% of the stock is currently owned by insiders.

Institutional Trading of Xerox

Several institutional investors have recently modified their holdings of the stock. Public Sector Pension Investment Board lifted its stake in shares of Xerox by 8.7% in the second quarter. Public Sector Pension Investment Board now owns 398,841 shares of the information technology services provider's stock worth $2,102,000 after buying an additional 31,888 shares in the last quarter. Evergreen Capital Management LLC acquired a new position in shares of Xerox in the 2nd quarter worth approximately $184,000. CANADA LIFE ASSURANCE Co boosted its position in shares of Xerox by 1.9% during the second quarter. CANADA LIFE ASSURANCE Co now owns 164,566 shares of the information technology services provider's stock worth $868,000 after buying an additional 3,138 shares during the period. Tower Research Capital LLC TRC grew its position in Xerox by 189.8% in the 2nd quarter. Tower Research Capital LLC TRC now owns 11,990 shares of the information technology services provider's stock valued at $63,000 after acquiring an additional 7,852 shares in the last quarter. Finally, Corient Private Wealth LLC purchased a new position in Xerox in the 2nd quarter valued at approximately $571,000. Institutional investors and hedge funds 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.