Xerox (NYSE:XRX) Trading Down 18.4% Following Weak Earnings

Key Points

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Xerox Holdings Co. (NYSE:XRX - Get Free Report) fell 18.4% on Thursday following a weaker than expected earnings announcement. The stock traded as low as $4.23 and last traded at $4.26. 2,329,931 shares were traded during trading, a decline of 41% from the average session volume of 3,953,139 shares. The stock had previously closed at $5.22.

The information technology services provider reported ($0.64) earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 quarter last year, the business earned $0.29 earnings per share. The business's revenue for the quarter was down .1% on a year-over-year basis.

Xerox Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, July 31st. Shareholders of record on Monday, June 30th were issued a $0.025 dividend. The ex-dividend date of this dividend was Monday, June 30th. This represents a $0.10 dividend on an annualized basis and a yield of 2.5%. Xerox's dividend payout ratio is -0.87%.

Insider Activity at Xerox

In related news, COO John G. Bruno purchased 25,000 shares of Xerox stock in a transaction on Friday, May 23rd. The stock was purchased at an average cost of $4.38 per share, with a total value of $109,500.00. Following the acquisition, the chief operating officer directly owned 259,775 shares in the company, valued at approximately $1,137,814.50. This trade represents a 10.65% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this link. Also, Director A. Scott Letier purchased 25,000 shares of Xerox stock in a transaction on Friday, May 23rd. The stock was bought at an average cost of $4.43 per share, with a total value of $110,750.00. Following the completion of the acquisition, the director owned 29,384 shares in the company, valued at approximately $130,171.12. This trade represents a 570.26% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders bought 82,300 shares of company stock valued at $364,254 in the last quarter. Company insiders own 1.50% of the company's stock.

Institutional Trading of Xerox

Hedge funds have recently bought and sold shares of the stock. Invesco Ltd. lifted its holdings in shares of Xerox by 5.9% during the 4th quarter. Invesco Ltd. now owns 1,706,086 shares of the information technology services provider's stock worth $14,382,000 after acquiring an additional 94,779 shares during the period. Vanguard Group Inc. lifted its holdings in shares of Xerox by 1.3% during the 4th quarter. Vanguard Group Inc. now owns 15,763,679 shares of the information technology services provider's stock worth $132,888,000 after acquiring an additional 199,598 shares during the period. Yousif Capital Management LLC lifted its holdings in shares of Xerox by 5.7% during the 1st quarter. Yousif Capital Management LLC now owns 56,907 shares of the information technology services provider's stock worth $275,000 after acquiring an additional 3,091 shares during the period. Deutsche Bank AG lifted 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 during the period. Finally, GAMMA Investing LLC lifted its holdings in shares of Xerox by 569.7% during the 1st quarter. GAMMA Investing LLC now owns 7,045 shares of the information technology services provider's stock worth $34,000 after acquiring an additional 5,993 shares during the period. 85.36% of the stock is owned by institutional investors.

Xerox Stock Down 3.0%

The business's fifty day moving average price is $5.27 and its 200 day moving average price is $5.87. The company has a market capitalization of $494.35 million, a P/E ratio of -0.37 and a beta of 1.82. The company has a current ratio of 1.11, a quick ratio of 0.84 and a debt-to-equity ratio of 2.61.

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.