Xerox Target of Unusually Large Options Trading (NYSE:XRX)

Key Points

• Xerox Holdings Co. experienced an unprecedented increase in options trading with 1,689 put options purchased, marking a 1,369% rise in volume compared to the average.
• Company insiders, including COO John G. Bruno and CEO Steven John Bandrowczak, have recently increased their ownership by acquiring large amounts of stock, suggesting confidence in the company's future.
• Xerox announced a quarterly dividend of $0.025 per share, translating to a 2.6% yield, with the next payment scheduled for October 31st.

Xerox Holdings Co. (NYSE:XRX - Get Free Report) was the recipient of unusually large options trading on Wednesday. Investors bought 1,689 put options on the company. Thisrepresentsanincreaseofapproximately1,369% compared to the average volume of 115 put options.

Xerox Trading Down 2.8%

NYSE:XRX traded down $0.11 on Tuesday, reaching $3.82. The company's stock had a trading volume of 4,293,429 shares, compared to its average volume of 4,083,575. Xerox has a 12-month low of $3.44 and a 12-month high of $11.42. 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 firm has a market cap of $480.67 million, a price-to-earnings ratio of -0.36 and a beta of 1.79. The stock has a 50 day moving average price of $4.90 and a 200 day moving average price of $5.26.

Xerox (NYSE:XRX - Get Free Report) last posted its earnings results on Thursday, July 31st. The information technology services provider reported ($0.64) 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 period in the previous year, the company posted $0.29 earnings per share. The firm's revenue was down .1% compared to the same quarter last year. Xerox has set its FY 2025 guidance at EPS. On average, equities analysts anticipate that Xerox will post 1.07 EPS for the current fiscal year.

Xerox Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 31st. Shareholders of record on Tuesday, September 30th will be given a $0.025 dividend. The ex-dividend date is Tuesday, September 30th. This represents a $0.10 dividend on an annualized basis and a yield of 2.6%. Xerox's payout ratio is currently -0.87%.

Insider Buying and Selling

In related news, Director A. Scott Letier acquired 29,600 shares of Xerox stock in a transaction that occurred on Friday, August 1st. The shares were purchased at an average price of $3.95 per share, for a total transaction of $116,920.00. Following the completion of the transaction, the director owned 58,984 shares in the company, valued at $232,986.80. This represents a 100.74% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders own 1.50% of the company's stock.

Institutional Investors Weigh In On Xerox

A number of institutional investors and hedge funds have recently added to or reduced their stakes in XRX. LPL Financial LLC raised its position in 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 purchasing an additional 8,837 shares during the period. Russell Investments Group Ltd. raised its holdings in shares of Xerox by 3.0% in the 4th quarter. Russell Investments Group Ltd. now owns 87,466 shares of the information technology services provider's stock valued at $737,000 after buying an additional 2,534 shares during the period. Raymond James Financial Inc. purchased a new stake in shares of Xerox in the 4th quarter valued at $208,000. Sterling Capital Management LLC raised its holdings in shares of Xerox by 48.9% in the 4th quarter. Sterling Capital Management LLC now owns 10,106 shares of the information technology services provider's stock valued at $85,000 after buying an additional 3,319 shares during the period. Finally, XTX Topco Ltd purchased a new stake in shares of Xerox in the 4th quarter valued at $281,000. Hedge funds and other institutional investors own 85.36% of the company's stock.

Wall Street Analysts Forecast Growth

Separately, Citigroup initiated coverage on Xerox in a research report on Monday, August 18th. They set a "neutral" rating and a $4.50 price objective on the stock. One research analyst has rated the stock with a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Sell" and an average price target of $6.83.

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.