Xerox Corp. (XRX) Lowered to “Hold” at Zacks Investment Research
Xerox Corp. (NYSE:XRX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.
According to Zacks, “Xerox has a decent earnings surprise history, having beaten estimates thrice in the trailing four quarters. The company is splitting its BPO business from Document Technology and Document Outsourcing businesses to focus on revenue growth, margin expansion and disciplined investments in attractive growing markets. Xerox has also decided to execute a three-year strategic transformation program which will target incremental savings of $600 million across all segments. Xerox is further attempting to realize cumulative cost reduction of $2.4 billion over three years. However, post Brexit referendum, Xerox is likely to be stifled by the renegotiated deals and restrictions imposed on trade with other European Union members due to significant U.K. operations. Significant slip-ups in its Medicare and Medicare information services for several government agencies across the U.S. have also hurt its overall profitability.”
Several other brokerages have also weighed in on XRX. BMO Capital Markets upped their price objective on Xerox Corp. from $10.00 to $10.50 and gave the company a “market perform” rating in a report on Monday, August 1st. Brean Capital restated a “hold” rating on shares of Xerox Corp. in a report on Monday, August 1st. Barclays PLC restated an “underweight” rating and issued a $11.00 price objective (up previously from $10.00) on shares of Xerox Corp. in a report on Tuesday, August 2nd. Vetr lowered Xerox Corp. from a “strong-buy” rating to a “buy” rating and set a $10.47 price objective for the company. in a report on Tuesday, October 4th. Finally, SunTrust Banks Inc. assumed coverage on Xerox Corp. in a report on Tuesday, September 13th. They issued a “buy” rating and a $13.00 price objective for the company. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating and three have assigned a buy rating to the stock. The stock presently has an average rating of “Hold” and an average price target of $11.10.
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Shares of Xerox Corp. (NYSE:XRX) traded up 0.21% during mid-day trading on Wednesday, reaching $9.73. The company’s stock had a trading volume of 1,702,338 shares. The company has a market capitalization of $9.86 billion, a PE ratio of 25.40 and a beta of 1.29. The firm’s 50 day moving average is $9.87 and its 200-day moving average is $9.88. Xerox Corp. has a 52-week low of $8.48 and a 52-week high of $11.39.
Xerox Corp. (NYSE:XRX) last announced its quarterly earnings data on Friday, July 29th. The company reported $0.30 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.25 by $0.05. The business earned $4.40 billion during the quarter, compared to analyst estimates of $4.39 billion. Xerox Corp. had a return on equity of 12.36% and a net margin of 2.49%. The company’s revenue was down 69.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.22 earnings per share. Analysts forecast that Xerox Corp. will post $1.13 EPS for the current year.
In other Xerox Corp. news, insider Herve Tessler sold 13,000 shares of the company’s stock in a transaction dated Wednesday, August 3rd. The stock was sold at an average price of $9.89, for a total value of $128,570.00. Following the transaction, the insider now directly owns 110,319 shares of the company’s stock, valued at approximately $1,091,054.91. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Chairman Ursula M. Burns sold 3,317 shares of the company’s stock in a transaction dated Monday, August 15th. The stock was sold at an average price of $9.85, for a total value of $32,672.45. The disclosure for this sale can be found here. 0.37% of the stock is owned by company insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of XRX. Eaton Vance Management raised its position in shares of Xerox Corp. by 0.7% in the second quarter. Eaton Vance Management now owns 11,873 shares of the company’s stock valued at $113,000 after buying an additional 88 shares during the last quarter. Tdam USA Inc. raised its position in shares of Xerox Corp. by 0.5% in the second quarter. Tdam USA Inc. now owns 27,343 shares of the company’s stock valued at $259,000 after buying an additional 139 shares during the last quarter. Commerce Bank raised its position in shares of Xerox Corp. by 0.8% in the second quarter. Commerce Bank now owns 29,906 shares of the company’s stock valued at $284,000 after buying an additional 228 shares during the last quarter. SSI Investment Management Inc. raised its position in shares of Xerox Corp. by 1.8% in the second quarter. SSI Investment Management Inc. now owns 14,721 shares of the company’s stock valued at $138,000 after buying an additional 254 shares during the last quarter. Finally, Conning Inc. raised its position in shares of Xerox Corp. by 1.1% in the second quarter. Conning Inc. now owns 41,728 shares of the company’s stock valued at $396,000 after buying an additional 450 shares during the last quarter. 83.85% of the stock is currently owned by institutional investors.
Xerox Corp. Company Profile
Xerox Corporation is engaged in imaging, business process, analytics, automation and user-centric insights. The Company’s segments include Services, Document Technology and Other. The Company’s Services segment comprises two types of service offerings: Business Process Outsourcing (BPO) and Document Outsourcing (DO).
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