StockNews.com Downgrades Xerox (NYSE:XRX) to Hold

StockNews.com cut shares of Xerox (NYSE:XRX) from a buy rating to a hold rating in a report published on Sunday morning.

A number of other brokerages have also weighed in on XRX. Loop Capital reduced their price target on shares of Xerox from $14.00 to $11.00 and set a “hold” rating for the company in a research note on Wednesday, August 14th. Morgan Stanley cut their target price on Xerox from $10.00 to $8.00 and set an “underweight” rating for the company in a research report on Wednesday, October 30th. Finally, JPMorgan Chase & Co. lowered their price target on Xerox from $11.00 to $8.00 and set an “underweight” rating on the stock in a research report on Wednesday, October 30th. Three investment analysts have rated the stock with a sell rating and two have assigned a hold rating to the stock. According to data from MarketBeat, the company has an average rating of “Reduce” and an average target price of $9.50.

Xerox Stock Performance

Shares of NYSE XRX opened at $8.39 on Friday. The stock has a market capitalization of $1.04 billion, a P/E ratio of -0.76 and a beta of 1.59. The firm’s 50-day moving average price is $9.72 and its two-hundred day moving average price is $11.22. Xerox has a 52-week low of $8.02 and a 52-week high of $19.78. The company has a quick ratio of 0.95, a current ratio of 1.26 and a debt-to-equity ratio of 2.11.

Xerox (NYSE:XRX) last released its quarterly earnings results on Tuesday, October 29th. The information technology services provider reported $0.25 EPS for the quarter, missing the consensus estimate of $0.51 by ($0.26). The firm had revenue of $1.53 billion for the quarter, compared to the consensus estimate of $1.63 billion. Xerox had a positive return on equity of 6.60% and a negative net margin of 21.31%. The firm’s revenue was down 7.5% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.46 EPS. As a group, sell-side analysts forecast that Xerox will post 1.38 earnings per share for the current year.

Xerox Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, January 31st. Shareholders of record on Tuesday, December 31st will be given a $0.25 dividend. The ex-dividend date of this dividend is Tuesday, December 31st. This represents a $1.00 annualized dividend and a yield of 11.92%. Xerox’s dividend payout ratio (DPR) is -9.06%.

Institutional Investors Weigh In On Xerox

Hedge funds have recently modified their holdings of the stock. CWM LLC boosted its position in shares of Xerox by 155.5% in the second quarter. CWM LLC now owns 2,264 shares of the information technology services provider’s stock worth $26,000 after buying an additional 1,378 shares during the period. EntryPoint Capital LLC acquired a new position in Xerox during the first quarter worth $45,000. Gladius Capital Management LP bought a new position in shares of Xerox in the third quarter valued at approximately $29,000. US Bancorp DE increased its position in Xerox by 42.3% in the 3rd quarter. US Bancorp DE now owns 6,353 shares of the information technology services provider’s stock worth $66,000 after buying an additional 1,888 shares during the period. Finally, Plato Investment Management Ltd acquired a new position in Xerox in the 1st quarter valued at approximately $115,000. 85.36% of the stock is owned by hedge funds and other institutional investors.

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.