Zacks Investment Research Downgrades Xerox (NYSE:XRX) to Strong Sell

Xerox (NYSE:XRXGet Rating) was downgraded by Zacks Investment Research from a “buy” rating to a “strong sell” rating in a note issued to investors on Tuesday, Zacks.com reports. They presently have a $15.00 price objective on the information technology services provider’s stock. Zacks Investment Research‘s price objective suggests a potential downside of 14.14% from the company’s current price.

According to Zacks, “Xerox's bottom line is benefiting from "Project Own It," an initiative aimed at increasing productivity and operational efficiency, reducing costs and realigning business to changing market conditions. The company has an aggressive product development program in new high growth markets. It's post-sale driven business model provides significant recurring revenue and cash generation opportunity. On the flip side, the company continues to grapple with decreased demand for paper-related systems and products due to technological advancements. Presence of large number of substitutes raises competitive pressure. A debt-laden balance sheet remains a concern. Xerox's shares have underperformed its industry over the past year, partly due to revenues miss in two of the last four quarters.”

Several other analysts also recently weighed in on XRX. TheStreet downgraded Xerox from a “b” rating to a “c” rating in a research note on Tuesday, January 25th. Citigroup decreased their price target on Xerox from $17.00 to $15.00 and set a “sell” rating for the company in a research note on Friday. Morgan Stanley decreased their price target on Xerox from $15.00 to $13.00 and set an “underweight” rating for the company in a research note on Friday. Finally, StockNews.com assumed coverage on Xerox in a research note on Thursday, March 31st. They issued a “hold” rating for the company. Three research analysts have rated the stock with a sell rating and one has given a hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Sell” and an average target price of $14.33.

NYSE:XRX traded down $0.19 during mid-day trading on Tuesday, hitting $17.47. The company had a trading volume of 44,768 shares, compared to its average volume of 2,666,940. The business has a fifty day simple moving average of $19.59 and a 200-day simple moving average of $20.48. The company has a current ratio of 1.21, a quick ratio of 1.42 and a debt-to-equity ratio of 0.67. Xerox has a 1 year low of $16.07 and a 1 year high of $25.53. The firm has a market capitalization of $2.71 billion, a price-to-earnings ratio of -5.12 and a beta of 1.70.

Xerox (NYSE:XRXGet Rating) last announced its earnings results on Thursday, April 21st. The information technology services provider reported ($0.12) earnings per share for the quarter, missing the consensus estimate of $0.13 by ($0.25). The business had revenue of $1.67 billion for the quarter, compared to analyst estimates of $1.63 billion. Xerox had a negative net margin of 7.86% and a positive return on equity of 4.85%. The firm’s revenue was down 2.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.22 earnings per share. As a group, research analysts anticipate that Xerox will post 1.8 earnings per share for the current year.

In other news, major shareholder Carl C. Icahn bought 1,346,523 shares of the company’s stock in a transaction that occurred on Friday, April 22nd. The shares were purchased at an average price of $16.96 per share, with a total value of $22,837,030.08. Following the completion of the acquisition, the insider now directly owns 33,461,414 shares in the company, valued at $567,505,581.44. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, major shareholder Carl C. Icahn purchased 783,900 shares of the firm’s stock in a transaction on Monday, April 25th. The stock was acquired at an average price of $17.17 per share, for a total transaction of $13,459,563.00. Following the transaction, the insider now owns 34,245,314 shares of the company’s stock, valued at approximately $587,992,041.38. The disclosure for this purchase can be found here. Insiders own 0.57% of the company’s stock.

Institutional investors have recently bought and sold shares of the business. Parallel Advisors LLC grew its position in Xerox by 1,882.5% during the 4th quarter. Parallel Advisors LLC now owns 1,130 shares of the information technology services provider’s stock worth $26,000 after purchasing an additional 1,073 shares in the last quarter. TCI Wealth Advisors Inc. grew its holdings in shares of Xerox by 81.1% during the 4th quarter. TCI Wealth Advisors Inc. now owns 1,612 shares of the information technology services provider’s stock valued at $36,000 after acquiring an additional 722 shares in the last quarter. Signaturefd LLC grew its holdings in shares of Xerox by 722.8% during the 4th quarter. Signaturefd LLC now owns 2,131 shares of the information technology services provider’s stock valued at $48,000 after acquiring an additional 1,872 shares in the last quarter. Exchange Traded Concepts LLC grew its holdings in shares of Xerox by 73.1% during the 4th quarter. Exchange Traded Concepts LLC now owns 2,278 shares of the information technology services provider’s stock valued at $52,000 after acquiring an additional 962 shares in the last quarter. Finally, Quent Capital LLC purchased a new position in shares of Xerox during the 4th quarter valued at $52,000. Hedge funds and other institutional investors own 79.52% of the company’s stock.

About Xerox (Get Rating)

Xerox Holdings Corporation, a workplace technology company, designs, develops, and sells document management systems and solutions in the United States, Europe, Canada, and internationally. It offers workplace solutions, including desktop monochrome, and color and multifunction printers; digital printing presses and light production devices, and solutions; and digital services that leverage workflow automation, personalization and communication software, content management solutions, and digitization services.

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