Xerox Sees Unusually Large Options Volume (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 target of unusually large options trading on Wednesday. Stock investors acquired 1,689 put options on the stock. Thisisanincreaseofapproximately1,369% compared to the average volume of 115 put options.

Insiders Place Their Bets

In related news, COO John G. Bruno acquired 25,000 shares of Xerox stock in a transaction dated Friday, May 23rd. The stock was acquired at an average price of $4.38 per share, for a total transaction of $109,500.00. Following the transaction, the chief operating officer owned 259,775 shares of the company's stock, valued at $1,137,814.50. This represents a 10.65% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Steven John Bandrowczak bought 22,300 shares of the company's stock in a transaction that occurred on Friday, May 23rd. The stock was bought at an average cost of $4.48 per share, for a total transaction of $99,904.00. Following the completion of the transaction, the chief executive officer directly owned 382,442 shares in the company, valued at approximately $1,713,340.16. The trade was a 6.19% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have bought 117,079 shares of company stock worth $502,045 in the last three months. 1.50% of the stock is owned by company insiders.

Institutional Trading of Xerox

Several hedge funds have recently made changes to their positions in XRX. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in shares of Xerox by 3.6% in the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 66,209 shares of the information technology services provider's stock valued at $558,000 after purchasing an additional 2,320 shares in the last quarter. Gabelli Funds LLC boosted its holdings in Xerox by 4.5% during the second quarter. Gabelli Funds LLC now owns 58,000 shares of the information technology services provider's stock worth $306,000 after buying an additional 2,500 shares in the last quarter. Russell Investments Group Ltd. grew its position in Xerox by 3.0% during the fourth quarter. Russell Investments Group Ltd. now owns 87,466 shares of the information technology services provider's stock worth $737,000 after buying an additional 2,534 shares during the period. PNC Financial Services Group Inc. increased its holdings in Xerox by 110.8% in the first quarter. PNC Financial Services Group Inc. now owns 5,539 shares of the information technology services provider's stock valued at $27,000 after buying an additional 2,911 shares in the last quarter. Finally, SBI Securities Co. Ltd. lifted its position in shares of Xerox by 21.6% during the 1st quarter. SBI Securities Co. Ltd. now owns 17,281 shares of the information technology services provider's stock valued at $83,000 after acquiring an additional 3,066 shares during the period. Institutional investors and hedge funds own 85.36% of the company's stock.

Xerox Trading Down 3.3%

NYSE XRX opened at $3.82 on Thursday. Xerox has a one year low of $3.44 and a one year high of $11.42. The firm has a market cap of $480.67 million, a PE ratio of -0.36 and a beta of 1.79. The firm's fifty day moving average is $5.02 and its two-hundred day moving average is $5.41. The company has a debt-to-equity ratio of 2.61, a quick ratio of 0.84 and a current ratio of 1.11.

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

Xerox Dividend Announcement

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

Wall Street Analyst Weigh In

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

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.

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