Xerox (NYSE:XRX) Shares Gap Down – Should You Sell?

Xerox Holdings Co. (NYSE:XRX)’s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $9.71, but opened at $9.46. Xerox shares last traded at $8.45, with a volume of 726,232 shares trading hands.

Analyst Upgrades and Downgrades

XRX has been the topic of a number of recent analyst reports. Morgan Stanley dropped their price objective on Xerox from $10.00 to $8.00 and set an “underweight” rating on the stock in a research note on Wednesday, October 30th. JPMorgan Chase & Co. dropped their price target on Xerox from $11.00 to $8.00 and set an “underweight” rating on the stock in a research note on Wednesday, October 30th. Finally, StockNews.com downgraded Xerox from a “buy” rating to a “hold” rating in a research note on Friday, January 17th. Three analysts have rated the stock with a sell rating and two have issued a hold rating to the stock. According to MarketBeat, the company has an average rating of “Reduce” and a consensus price target of $9.50.

Xerox Trading Down 8.1 %

The business has a 50 day moving average of $8.92 and a two-hundred day moving average of $9.77. The company has a debt-to-equity ratio of 2.11, a quick ratio of 0.95 and a current ratio of 1.26. The firm has a market capitalization of $1.11 billion, a price-to-earnings ratio of -0.81 and a beta of 1.59.

Xerox (NYSE:XRX) last issued its quarterly earnings data 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 company had revenue of $1.53 billion during the quarter, compared to analysts’ expectations of $1.63 billion. Xerox had a positive return on equity of 6.60% and a negative net margin of 21.31%. The business’s revenue for the quarter was down 7.5% compared to the same quarter last year. During the same period last year, the company earned $0.46 earnings per share. Equities analysts predict that Xerox Holdings Co. will post 1.12 EPS for the current year.

Xerox Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, January 31st. Stockholders of record on Tuesday, December 31st will be issued a $0.25 dividend. This represents a $1.00 annualized dividend and a dividend yield of 11.20%. The ex-dividend date is Tuesday, December 31st. Xerox’s dividend payout ratio is presently -9.06%.

Hedge Funds Weigh In On Xerox

Institutional investors have recently modified their holdings of the business. Gladius Capital Management LP bought a new position in shares of Xerox in the third quarter valued at approximately $29,000. US Bancorp DE grew its holdings in shares of Xerox by 42.3% in 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. KBC Group NV grew its holdings in shares of Xerox by 84.5% in the fourth quarter. KBC Group NV now owns 9,223 shares of the information technology services provider’s stock valued at $78,000 after acquiring an additional 4,224 shares in the last quarter. Vest Financial LLC bought a new position in shares of Xerox in the fourth quarter valued at approximately $97,000. Finally, Prism Advisors Inc. bought a new position in shares of Xerox in the fourth quarter valued at approximately $103,000. 85.36% of the stock is owned by 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.