Zacks Investment Research upgraded shares of Xerox (NYSE:XRX) from a hold rating to a strong-buy rating in a research report sent to investors on Friday morning. They currently have $32.00 target price on the information technology services provider’s stock.
According to Zacks, “Xerox reported mixed third-quarter 2018 results, wherein the company’s bottom line surpassed the Zacks Consensus Estimate but the top line lagged the same. Both the metrics declined on a year-over-year basis. Xerox continues to expand its Small and Mid-sized (SMB) coverage through distribution acquisitions. The company maintained 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. Despite such tailwinds, shares of Xerox have underperformed its industry in the past year. The 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.”
Several other equities analysts have also recently weighed in on the company. Citigroup reduced their price target on Xerox from $37.00 to $34.00 and set a buy rating for the company in a research report on Wednesday. Standpoint Research upgraded Xerox from a hold rating to a buy rating in a research report on Tuesday, July 10th. ValuEngine upgraded Xerox from a strong sell rating to a sell rating in a research report on Wednesday. Finally, JPMorgan Chase & Co. reduced their price target on Xerox from $38.00 to $35.00 and set a hold rating for the company in a research report on Friday, July 27th. One investment analyst has rated the stock with a sell rating, two have given a hold rating, four have assigned a buy rating and one has given a strong buy rating to the company. The stock presently has a consensus rating of Buy and a consensus price target of $35.10.
Xerox (NYSE:XRX) last issued its earnings results on Tuesday, October 23rd. The information technology services provider reported $0.85 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.78 by $0.07. The firm had revenue of $2.35 billion for the quarter, compared to analyst estimates of $2.42 billion. Xerox had a return on equity of 16.50% and a net margin of 0.34%. The business’s revenue was down 5.8% on a year-over-year basis. During the same period in the previous year, the company posted $0.89 earnings per share. Sell-side analysts anticipate that Xerox will post 3.42 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 31st. Investors of record on Monday, December 31st will be given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 3.65%. The ex-dividend date of this dividend is Friday, December 28th. Xerox’s payout ratio is 28.74%.
In related news, insider Herve Tessler sold 16,567 shares of the business’s stock in a transaction dated Friday, August 3rd. The stock was sold at an average price of $26.03, for a total transaction of $431,239.01. Following the completion of the transaction, the insider now directly owns 34,647 shares in the company, valued at $901,861.41. The transaction was disclosed in a document filed with the SEC, which is available through this link. 0.19% of the stock is owned by insiders.
A number of institutional investors have recently bought and sold shares of XRX. UBS Group AG grew its position in Xerox by 9.2% during the first quarter. UBS Group AG now owns 178,624 shares of the information technology services provider’s stock worth $5,140,000 after buying an additional 15,106 shares in the last quarter. Amundi Pioneer Asset Management Inc. grew its position in Xerox by 15.2% during the first quarter. Amundi Pioneer Asset Management Inc. now owns 189,345 shares of the information technology services provider’s stock worth $5,448,000 after buying an additional 25,009 shares in the last quarter. CIBC World Markets Inc. purchased a new position in Xerox during the first quarter worth about $467,000. Allianz Asset Management GmbH grew its position in Xerox by 17.5% during the first quarter. Allianz Asset Management GmbH now owns 628,817 shares of the information technology services provider’s stock worth $18,097,000 after buying an additional 93,535 shares in the last quarter. Finally, Suntrust Banks Inc. boosted its holdings in shares of Xerox by 226.5% in the 1st quarter. Suntrust Banks Inc. now owns 27,142 shares of the information technology services provider’s stock worth $780,000 after purchasing an additional 18,830 shares in the last quarter. Institutional investors and hedge funds own 83.18% of the company’s stock.
Xerox Corporation designs, develops, and sells document management systems and solutions worldwide. It offers managed document services, including managed print services and multi-channel communication services, as well as a range of digital solutions, such as workflow automation services, content management, and digitization services.
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