Xerox Corp. (NYSE:XRX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued 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.”
A number of other research analysts also recently commented on the company. Vetr downgraded Xerox Corp. from a “strong-buy” rating to a “buy” rating and set a $10.47 price target for the company. in a research note on Tuesday, October 4th. SunTrust Banks Inc. assumed coverage on Xerox Corp. in a research note on Tuesday, September 13th. They issued a “buy” rating and a $13.00 price target for the company. Barclays PLC reaffirmed an “underweight” rating and issued a $11.00 price target (up previously from $10.00) on shares of Xerox Corp. in a research note on Tuesday, August 2nd. BMO Capital Markets boosted their price target on Xerox Corp. from $10.00 to $10.50 and gave the company a “market perform” rating in a research note on Monday, August 1st. Finally, Brean Capital reaffirmed a “hold” rating on shares of Xerox Corp. in a research note on Monday, August 1st. One equities research analyst has rated the stock with a sell rating, nine have given a hold rating and three have given a buy rating to the company. The stock has a consensus rating of “Hold” and a consensus price target of $11.10.
Xerox Corp. (NYSE:XRX) traded up 0.257% during midday trading on Wednesday, hitting $9.735. The stock had a trading volume of 1,678,500 shares. Xerox Corp. has a 12 month low of $8.48 and a 12 month high of $11.39. The stock has a market cap of $9.86 billion, a price-to-earnings ratio of 25.418 and a beta of 1.29. The stock has a 50 day moving average of $9.87 and a 200 day moving average of $9.88.
Xerox Corp. (NYSE:XRX) last posted its quarterly earnings results on Friday, July 29th. The company reported $0.30 EPS for the quarter, beating the Zacks’ consensus estimate of $0.25 by $0.05. The business earned $4.40 billion during the quarter, compared to the consensus estimate of $4.39 billion. Xerox Corp. had a return on equity of 12.36% and a net margin of 2.49%. Xerox Corp.’s revenue for the quarter was down 69.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.22 earnings per share. Analysts expect that Xerox Corp. will post $1.13 EPS for the current fiscal year.
In other news, Chairman Ursula M. Burns sold 3,317 shares of the business’s stock in a transaction dated Monday, August 15th. The stock was sold at an average price of $9.85, for a total transaction of $32,672.45. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider Herve Tessler sold 13,000 shares of the business’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 sale, the insider now owns 110,319 shares in the company, valued at $1,091,054.91. The disclosure for this sale can be found here. Insiders own 0.37% of the company’s stock.
Several hedge funds have recently added to or reduced their stakes in XRX. JPMorgan Chase & Co. boosted its stake in Xerox Corp. by 79.0% in the first quarter. JPMorgan Chase & Co. now owns 3,015,848 shares of the company’s stock valued at $33,657,000 after buying an additional 1,331,226 shares during the period. Menta Capital LLC purchased a new stake in Xerox Corp. during the first quarter valued at $800,000. ING Groep NV boosted its stake in Xerox Corp. by 349.3% in the first quarter. ING Groep NV now owns 52,847 shares of the company’s stock valued at $589,000 after buying an additional 41,086 shares during the period. Meeder Asset Management Inc. boosted its stake in Xerox Corp. by 3.7% in the first quarter. Meeder Asset Management Inc. now owns 136,754 shares of the company’s stock valued at $1,526,000 after buying an additional 4,927 shares during the period. Finally, Quadrature Capital Ltd purchased a new stake in Xerox Corp. during the first quarter valued at $380,000. Institutional investors own 83.85% of the company’s stock.
About Xerox Corp.
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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