Xerox (NYSE:XRX) Shares Gap Up – Still a Buy?

Xerox Holdings Co. (NYSE:XRX) shares gapped up prior to trading on Monday . The stock had previously closed at $8.39, but opened at $8.99. Xerox shares last traded at $8.77, with a volume of 2,577,006 shares traded.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on XRX shares. JPMorgan Chase & Co. lowered their price objective on Xerox from $11.00 to $8.00 and set an “underweight” rating for the company in a research note on Wednesday, October 30th. Morgan Stanley dropped their price objective on shares of Xerox from $10.00 to $8.00 and set an “underweight” rating for the company in a research note on Wednesday, October 30th. Finally, StockNews.com raised shares of Xerox from a “hold” rating to a “buy” rating in a research note on Monday, December 16th. Three equities research analysts have rated the stock with a sell rating, one has issued a hold rating and one has given a buy rating to the company. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $9.50.

Xerox Stock Down 2.3 %

The stock has a market cap of $1.15 billion, a P/E ratio of -0.84 and a beta of 1.59. The company’s 50 day moving average price is $9.02 and its two-hundred day moving average price is $10.36. 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 data on Tuesday, October 29th. The information technology services provider reported $0.25 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.51 by ($0.26). The business had revenue of $1.53 billion for the quarter, compared to the consensus estimate of $1.63 billion. Xerox had a negative net margin of 21.31% and a positive return on equity of 6.60%. Xerox’s revenue for the quarter was down 7.5% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.46 earnings per share. As a group, research analysts expect that Xerox Holdings Co. will post 1.12 earnings per share for the current year.

Xerox Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, January 31st. Shareholders of record on Tuesday, December 31st will be issued a $0.25 dividend. The ex-dividend date is Tuesday, December 31st. This represents a $1.00 dividend on an annualized basis and a yield of 10.83%. Xerox’s dividend payout ratio is presently -9.06%.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of XRX. Gladius Capital Management LP acquired a new position in Xerox during the 3rd quarter valued at about $29,000. US Bancorp DE increased its holdings in shares of Xerox by 42.3% during the third quarter. US Bancorp DE now owns 6,353 shares of the information technology services provider’s stock valued at $66,000 after acquiring an additional 1,888 shares in the last quarter. nVerses Capital LLC purchased a new position in shares of Xerox in the 2nd quarter valued at approximately $78,000. International Assets Investment Management LLC boosted its stake in Xerox by 938.0% in the 3rd quarter. International Assets Investment Management LLC now owns 8,304 shares of the information technology services provider’s stock worth $800,000 after purchasing an additional 7,504 shares in the last quarter. Finally, Plato Investment Management Ltd grew its position in Xerox by 45.0% during the 2nd quarter. Plato Investment Management Ltd now owns 9,346 shares of the information technology services provider’s stock worth $109,000 after purchasing an additional 2,899 shares during the last quarter. Institutional investors own 85.36% of the company’s stock.

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.