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

Key Points

• Xerox Holdings Co. experienced an unusual surge in options trading, with investors purchasing 1,689 put options, marking a 1,369% increase compared to its average volume.
• Director A. Scott Letier increased his ownership in Xerox by 100.74% after acquiring 29,600 shares at an average price of $3.95 per share.
• Xerox has a consensus rating of "Reduce" with an average target price of $6.83, despite the company's recent earnings miss and quarterly revenue decline.

Xerox Holdings Co. (NYSE:XRX - Get Free Report) was the recipient of some unusual options trading activity on Wednesday. Stock investors bought 1,689 put options on the stock. This is an increase of approximately 1,369% compared to the average daily volume of 115 put options.

Insider Buying and Selling

In other news, Director A. Scott Letier bought 29,600 shares of the stock in a transaction on Friday, August 1st. The stock was purchased at an average price of $3.95 per share, with a total value of $116,920.00. Following the completion of the purchase, the director owned 58,984 shares of the company's stock, valued at approximately $232,986.80. This trade represents a 100.74% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Insiders own 1.50% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in XRX. PNC Financial Services Group Inc. boosted its holdings in Xerox by 110.8% during the first quarter. PNC Financial Services Group Inc. now owns 5,539 shares of the information technology services provider's stock worth $27,000 after purchasing an additional 2,911 shares during the last quarter. Allworth Financial LP lifted its stake in Xerox by 137.7% in the first quarter. Allworth Financial LP now owns 6,014 shares of the information technology services provider's stock valued at $29,000 after acquiring an additional 3,484 shares during the last quarter. Larson Financial Group LLC lifted its stake in Xerox by 331.8% in the first quarter. Larson Financial Group LLC now owns 6,507 shares of the information technology services provider's stock valued at $31,000 after acquiring an additional 5,000 shares during the last quarter. Spire Wealth Management acquired a new stake in Xerox in the second quarter valued at $31,000. Finally, GAMMA Investing LLC lifted its stake in Xerox by 569.7% in the first quarter. GAMMA Investing LLC now owns 7,045 shares of the information technology services provider's stock valued at $34,000 after acquiring an additional 5,993 shares during the last quarter. Institutional investors and hedge funds own 85.36% of the company's stock.

Xerox Stock Up 3.2%

Shares of XRX stock opened at $3.88 on Thursday. Xerox has a 12-month low of $3.44 and a 12-month high of $11.29. The firm has a fifty day moving average of $4.09 and a 200-day moving average of $4.69. The company has a market capitalization of $488.22 million, a price-to-earnings ratio of -0.36 and a beta of 1.77. The company has a quick ratio of 0.84, a current ratio of 1.11 and a debt-to-equity ratio of 2.61.

Xerox (NYSE:XRX - Get Free Report) last announced its earnings results 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 last year, the firm posted $0.29 EPS. The firm's quarterly revenue was down .1% on a year-over-year basis. Xerox has set its FY 2025 guidance at EPS. As a group, equities research analysts predict that Xerox will post 1.07 earnings per share for the current fiscal year.

Xerox Dividend Announcement

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

Wall Street Analyst Weigh In

Several brokerages have commented on XRX. Citigroup began coverage on shares of Xerox in a research note on Monday, August 18th. They issued a "neutral" rating and a $4.50 target price for the company. Zacks Research raised shares of Xerox from a "strong sell" rating to a "hold" rating in a research report on Wednesday, September 3rd. Two analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Reduce" and an average target price 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.

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