Xerox (NYSE:XRX) Reaches New 1-Year Low Following Weak Earnings

Xerox Holdings Co. (NYSE:XRX)’s share price reached a new 52-week low during mid-day trading on Tuesday following a dissappointing earnings announcement. The stock traded as low as $8.53 and last traded at $8.57, with a volume of 899267 shares traded. The stock had previously closed at $10.28.

The information technology services provider reported $0.25 EPS for the quarter, missing the consensus estimate of $0.53 by ($0.28). The firm had revenue of $1.53 billion for the quarter, compared to analysts’ expectations of $1.63 billion. Xerox had a negative net margin of 1.60% and a positive return on equity of 7.33%. The business’s quarterly revenue was down 7.5% compared to the same quarter last year. During the same period in the previous year, the company posted $0.46 earnings per share.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on XRX. StockNews.com raised Xerox from a “hold” rating to a “buy” rating in a research report on Thursday, September 5th. Morgan Stanley decreased their price target on Xerox from $10.00 to $8.00 and set an “underweight” rating for the company in a research note on Wednesday. Loop Capital dropped their price target on Xerox from $14.00 to $11.00 and set a “hold” rating on the stock in a research note on Wednesday, August 14th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Xerox from $11.00 to $8.00 and set an “underweight” rating for the company in a research report on Wednesday. Three investment analysts have rated the stock with a sell rating, one has assigned a hold rating and one has assigned a buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $9.50.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. CWM LLC boosted its stake in shares of Xerox by 155.5% in the second quarter. CWM LLC now owns 2,264 shares of the information technology services provider’s stock worth $26,000 after buying an additional 1,378 shares during the last quarter. EntryPoint Capital LLC acquired a new stake in shares of Xerox during the 1st quarter worth approximately $45,000. US Bancorp DE increased its holdings in shares of Xerox by 42.3% during the 3rd quarter. US Bancorp DE now owns 6,353 shares of the information technology services provider’s stock valued at $66,000 after purchasing an additional 1,888 shares in the last quarter. Plato Investment Management Ltd acquired a new position in shares of Xerox in the 1st quarter valued at $115,000. Finally, nVerses Capital LLC purchased a new stake in Xerox during the second quarter worth $78,000. 85.36% of the stock is currently owned by institutional investors and hedge funds.

Xerox Trading Down 3.1 %

The company has a quick ratio of 1.13, a current ratio of 1.49 and a debt-to-equity ratio of 1.34. The company’s 50-day moving average is $10.37 and its 200 day moving average is $11.88. The company has a market cap of $1.02 billion, a price-to-earnings ratio of -7.84 and a beta of 1.57.

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.