According to Zacks, “Xerox is executing a Strategic Transformation program to achieve productivity and cost reduction. The company has an aggressive product development program in new high growth markets. It continues to maintain a solid track record of strong margins, which it has been attaining through cost and productivity initiatives. Xerox’s post-sale driven business model provides significant recurring revenue and cash generation. In the past six months, the company's shares have outperformed the industry. On the flip side, company continues to grapple with decreased demand for paper-related systems and products. Global presence exposes Xerox to risks associated with unfavorable foreign currency movements. Large number of substitutes is a major threat to company’s business, which has largely affected the profit margin of Xerox.”
A number of other research analysts have also recently commented on XRX. Credit Suisse Group began coverage on shares of Xerox in a research note on Thursday, April 11th. They set an outperform rating and a $42.00 price target for the company. TheStreet upgraded shares of Xerox from a c+ rating to a b- rating in a research note on Friday, February 22nd. ValuEngine upgraded shares of Xerox from a strong sell rating to a sell rating in a research note on Tuesday, January 29th. Finally, Standpoint Research cut shares of Xerox from a buy rating to a hold rating in a research note on Friday, February 22nd. Five research analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. The company presently has an average rating of Hold and an average price target of $36.60.
Xerox (NYSE:XRX) last announced its quarterly earnings results on Tuesday, January 29th. The information technology services provider reported $1.14 EPS for the quarter, missing analysts’ consensus estimates of $1.16 by ($0.02). The business had revenue of $2.53 billion for the quarter, compared to the consensus estimate of $2.60 billion. Xerox had a return on equity of 16.81% and a net margin of 3.67%. The firm’s revenue for the quarter was down 7.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.04 EPS. As a group, sell-side analysts anticipate that Xerox will post 3.76 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Tuesday, April 30th. Stockholders of record on Friday, March 29th will be paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 2.86%. The ex-dividend date is Thursday, March 28th. Xerox’s dividend payout ratio (DPR) is currently 28.90%.
Large investors have recently bought and sold shares of the company. Moody National Bank Trust Division acquired a new stake in shares of Xerox in the first quarter valued at approximately $35,000. Legacy Bridge LLC acquired a new stake in shares of Xerox in the fourth quarter valued at approximately $30,000. CSat Investment Advisory L.P. increased its holdings in shares of Xerox by 56.9% in the fourth quarter. CSat Investment Advisory L.P. now owns 2,013 shares of the information technology services provider’s stock valued at $40,000 after purchasing an additional 730 shares in the last quarter. First Mercantile Trust Co. increased its holdings in shares of Xerox by 62.7% in the fourth quarter. First Mercantile Trust Co. now owns 2,570 shares of the information technology services provider’s stock valued at $50,000 after purchasing an additional 990 shares in the last quarter. Finally, Manchester Capital Management LLC increased its holdings in shares of Xerox by 1,366.3% in the fourth quarter. Manchester Capital Management LLC now owns 2,654 shares of the information technology services provider’s stock valued at $64,000 after purchasing an additional 2,473 shares in the last quarter. Institutional investors own 85.15% of the company’s stock.
Xerox Company Profile
Xerox Corporation designs, develops, and sells document management systems and solutions worldwide. It offers intelligent workplace services, including managed print services; digitization services; and digital solutions, such as workflow automation, personalization and communication software, and content management.
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