Xerox Corp. (XRX) Stock Rating Upgraded by Zacks Investment Research
Xerox Corp. (NYSE:XRX) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued on Tuesday.
According to Zacks, “Xerox reported relatively modest third-quarter 2016 results with adjusted earnings matching the Zacks Consensus Estimate. The company remains on track to complete the split of its BPO business from Document Technology and Document Outsourcing businesses by year-end 2016, in order to focus on revenue growth, margin expansion and disciplined investments in attractive growing markets. The company remains on track to save about $700 million in 2016 from the restructuring activities. 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. The availability of a large number of substitutes has also largely affected the profit margins of the company.”
Other equities research analysts have also recently issued reports about the stock. SunTrust Banks Inc. initiated coverage on shares of Xerox Corp. in a research report on Tuesday, September 13th. They set a “buy” rating and a $13.00 price objective for the company. Vetr lowered shares of Xerox Corp. from a “strong-buy” rating to a “buy” rating and set a $10.47 target price for the company. in a research note on Tuesday, October 4th. Brean Capital reaffirmed a “hold” rating on shares of Xerox Corp. in a research note on Monday, October 31st. BMO Capital Markets increased their target price on shares of Xerox Corp. from $10.00 to $10.50 and gave the stock a “market perform” rating in a research note on Monday, August 1st. Finally, Morgan Stanley lowered shares of Xerox Corp. from an “equal weight” rating to an “underweight” rating and lowered their target price for the stock from $11.50 to $9.50 in a research note on Monday, November 7th. Two equities research analysts have rated the stock with a sell rating, eight have given a hold rating and three have issued a buy rating to the company’s stock. Xerox Corp. has an average rating of “Hold” and an average target price of $10.95.
Shares of Xerox Corp. (NYSE:XRX) opened at 9.55 on Tuesday. The company has a market cap of $9.68 billion, a price-to-earnings ratio of 16.02 and a beta of 1.22. Xerox Corp. has a 12-month low of $8.48 and a 12-month high of $11.39. The stock has a 50 day moving average of $9.68 and a 200 day moving average of $9.70.
Xerox Corp. (NYSE:XRX) last released its quarterly earnings data on Friday, October 28th. The company reported $0.27 earnings per share (EPS) for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.27. Xerox Corp. had a net margin of 3.74% and a return on equity of 12.62%. The firm earned $4.20 billion during the quarter, compared to analysts’ expectations of $4.31 billion. During the same period last year, the business earned $0.24 earnings per share. Xerox Corp.’s revenue was down 2.8% compared to the same quarter last year. Analysts forecast that Xerox Corp. will post $1.12 earnings per share for the current year.
The company also recently announced a quarterly dividend, which will be paid on Tuesday, January 31st. Investors of record on Thursday, December 15th will be issued a $0.0775 dividend. The ex-dividend date of this dividend is Tuesday, December 13th. This represents a $0.31 annualized dividend and a yield of 3.25%. Xerox Corp.’s dividend payout ratio (DPR) is 50.00%.
In related news, Chairman Ursula M. Burns sold 74,815 shares of the firm’s stock in a transaction that occurred on Thursday, November 3rd. The shares were sold at an average price of $9.51, for a total value of $711,490.65. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. 0.37% of the stock is currently owned by corporate insiders.
A number of hedge funds have recently modified their holdings of XRX. CIBC World Markets Inc. purchased a new stake in shares of Xerox Corp. during the second quarter valued at $101,000. New York Life Trust Co. boosted its stake in shares of Xerox Corp. by 49.7% in the third quarter. New York Life Trust Co. now owns 10,203 shares of the company’s stock valued at $103,000 after buying an additional 3,387 shares during the period. Concert Wealth Management Inc. boosted its stake in shares of Xerox Corp. by 0.6% in the third quarter. Concert Wealth Management Inc. now owns 10,375 shares of the company’s stock valued at $104,000 after buying an additional 59 shares during the period. Lakeview Capital Partners LLC purchased a new stake in shares of Xerox Corp. during the third quarter valued at $107,000. Finally, Acrospire Investment Management LLC boosted its stake in shares of Xerox Corp. by 738.5% in the third quarter. Acrospire Investment Management LLC now owns 10,900 shares of the company’s stock valued at $110,000 after buying an additional 9,600 shares during the period. 84.28% of the stock is currently owned by hedge funds and other institutional investors.
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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