Xerox (NYSE:XRX) Stock Price Down 6.2% Following Weak Earnings

Xerox Holdings Co. (NYSE:XRX) shares traded down 6.2% during mid-day trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $4.15 and last traded at $4.14. 1,351,580 shares traded hands during trading, a decline of 50% from the average session volume of 2,717,074 shares. The stock had previously closed at $4.41.

The information technology services provider reported ($0.06) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.03). Xerox had a positive return on equity of 7.57% and a negative net margin of 21.24%. The business’s revenue for the quarter was down 3.0% compared to the same quarter last year. During the same period in the previous year, the company earned $0.06 EPS.

Xerox Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, April 30th. Stockholders of record on Monday, March 31st were issued a dividend of $0.125 per share. The ex-dividend date of this dividend was Monday, March 31st. This represents a $0.50 dividend on an annualized basis and a dividend yield of 10.33%. Xerox’s dividend payout ratio is currently -4.66%.

Wall Street Analyst Weigh In

Separately, StockNews.com downgraded shares of Xerox from a “buy” rating to a “hold” rating in a research report on Wednesday, February 5th. Three analysts have rated the stock with a sell rating and two have given a hold rating to the stock. Based on data from MarketBeat, Xerox presently has a consensus rating of “Reduce” and an average target price of $9.50.

Hedge Funds Weigh In On Xerox

Institutional investors have recently modified their holdings of the company. Allworth Financial LP raised its holdings in Xerox by 137.7% in the 1st quarter. Allworth Financial LP now owns 6,014 shares of the information technology services provider’s stock worth $29,000 after acquiring an additional 3,484 shares during the period. Picton Mahoney Asset Management grew its position in shares of Xerox by 330.5% in the fourth quarter. Picton Mahoney Asset Management now owns 3,758 shares of the information technology services provider’s stock valued at $31,000 after purchasing an additional 2,885 shares during the last quarter. Larson Financial Group LLC increased its stake in shares of Xerox by 331.8% in the first quarter. Larson Financial Group LLC now owns 6,507 shares of the information technology services provider’s stock worth $31,000 after purchasing an additional 5,000 shares during the period. GAMMA Investing LLC lifted its position in shares of Xerox by 569.7% during the 1st quarter. GAMMA Investing LLC now owns 7,045 shares of the information technology services provider’s stock worth $34,000 after purchasing an additional 5,993 shares during the last quarter. Finally, TD Waterhouse Canada Inc. bought a new position in Xerox in the 4th quarter worth approximately $51,000. Institutional investors own 85.36% of the company’s stock.

Xerox Trading Up 11.5 %

The company has a debt-to-equity ratio of 2.61, a current ratio of 1.11 and a quick ratio of 0.84. The company has a market capitalization of $608.75 million, a price-to-earnings ratio of -0.45 and a beta of 1.56. The business has a fifty day moving average price of $5.00 and a 200 day moving average price of $7.51.

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.