Xerox (XRX) Upgraded to “Buy” at Zacks Investment Research

Xerox (NYSE:XRX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Saturday. The firm currently has a $35.00 price target on the information technology services provider’s stock. Zacks Investment Research‘s target price points to a potential upside of 18.20% from the company’s previous close.

According to Zacks, “Xerox reported year-over-year growth in revenues and adjusted earnings per share in fourth-quarter 2017. Xerox has announced plans to merge with Fuji Xerox joint venture. There is uncertainty about the positive effects of the merger as the market lacks clarity about how the business will pan out. However, the company has outperformed the industry in the last three months. The company continues to grow globally through successful acquisitions and disposal of non-core assets. It is executing a three-year strategic transformation program to target incremental savings of $600 million across all segments. To better adapt to the changing market trends, Xerox is continually expanding indirect distribution channels and streamlining its supply chain and product portfolio. It is reprioritizing investments and accelerating its restructuring actions to improve revenue and margin. It aims to focus on organic improvements and services for the next few quarters.”

A number of other equities research analysts have also recently commented on XRX. UBS Group lowered their price objective on shares of Xerox from $36.00 to $34.50 and set a “neutral” rating on the stock in a research note on Friday, October 27th. Standpoint Research restated a “hold” rating on shares of Xerox in a report on Wednesday, January 31st. Finally, Loop Capital restated a “buy” rating on shares of Xerox in a report on Thursday, February 1st. Two investment analysts have rated the stock with a hold rating and nine have issued a buy rating to the company. Xerox presently has an average rating of “Buy” and a consensus price target of $35.19.

Shares of Xerox (XRX) traded down $0.19 during midday trading on Friday, reaching $29.61. 3,777,826 shares of the company were exchanged, compared to its average volume of 2,920,000. The firm has a market cap of $7,490.00, a PE ratio of 45.55 and a beta of 1.13. Xerox has a 12-month low of $26.64 and a 12-month high of $37.42. The company has a debt-to-equity ratio of 0.99, a quick ratio of 1.57 and a current ratio of 1.91.

Xerox (NYSE:XRX) last issued its quarterly earnings data on Wednesday, January 31st. The information technology services provider reported $1.04 EPS for the quarter, beating the Zacks’ consensus estimate of $0.96 by $0.08. The firm had revenue of $2.75 billion for the quarter, compared to analysts’ expectations of $2.63 billion. Xerox had a net margin of 1.67% and a return on equity of 17.13%. The firm’s revenue was up .5% on a year-over-year basis. During the same period in the prior year, the company earned $1.00 EPS. analysts predict that Xerox will post 3.43 earnings per share for the current year.

In other Xerox news, insider Carl C. Icahn sold 140,011 shares of the company’s stock in a transaction dated Monday, February 5th. The shares were sold at an average price of $32.50, for a total value of $4,550,357.50. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Carl C. Icahn sold 1,161,404 shares of the company’s stock in a transaction dated Friday, February 2nd. The shares were sold at an average price of $34.49, for a total transaction of $40,056,823.96. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 1,307,415 shares of company stock worth $44,778,721. 0.29% of the stock is owned by insiders.

A number of large investors have recently added to or reduced their stakes in the business. D.A. Davidson & CO. purchased a new position in shares of Xerox during the 4th quarter worth about $202,000. Advisor Partners LLC purchased a new position in shares of Xerox during the 4th quarter worth about $204,000. Conning Inc. purchased a new position in shares of Xerox during the 4th quarter worth about $215,000. Contravisory Investment Management Inc. lifted its holdings in shares of Xerox by 10,970.1% during the 4th quarter. Contravisory Investment Management Inc. now owns 7,417 shares of the information technology services provider’s stock worth $216,000 after acquiring an additional 7,350 shares during the period. Finally, Keybank National Association OH purchased a new position in shares of Xerox during the 3rd quarter worth about $233,000. Institutional investors own 82.83% of the company’s stock.

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Xerox Company Profile

Xerox Corporation is a provider of digital print technology and related solutions. The Company has capabilities in imaging and printing, data analytics, and the development of secure and automated solutions to help customers improve productivity. The Company’s primary offerings span three main areas: Managed Document Services, Workplace Solutions and Graphic Communications.

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