Stock Traders Buy Large Volume of Xerox Put Options (NYSE:XRX)

Xerox Holdings Co. (NYSE:XRX) was the target of some unusual options trading on Wednesday. Stock investors purchased 1,689 put options on the stock. This represents an increase of 1,369% compared to the typical volume of 115 put options.

Xerox Price Performance

Shares of NYSE:XRX remained flat at $8.27 during midday trading on Thursday. 117,359 shares of the stock traded hands, compared to its average volume of 2,203,555. The company has a current ratio of 1.26, a quick ratio of 0.95 and a debt-to-equity ratio of 2.11. Xerox has a one year low of $8.02 and a one year high of $19.78. The stock has a market cap of $1.03 billion, a P/E ratio of 8.42 and a beta of 1.59. The business’s 50 day moving average price is $9.89 and its 200 day moving average price is $11.39.

Xerox (NYSE:XRX) last issued its quarterly earnings data on Tuesday, October 29th. The information technology services provider reported $0.25 EPS for the quarter, missing the consensus estimate of $0.51 by ($0.26). The company had revenue of $1.53 billion during the quarter, compared to analysts’ expectations of $1.63 billion. Xerox had a positive return on equity of 6.60% and a negative net margin of 21.31%. The business’s revenue for the quarter was down 7.5% compared to the same quarter last year. During the same period last year, the company earned $0.46 earnings per share. On average, analysts anticipate that Xerox will post 1.38 EPS for the current fiscal year.

Xerox Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, January 31st. Stockholders of record on Tuesday, December 31st will be issued a $0.25 dividend. The ex-dividend date of this dividend is Tuesday, December 31st. This represents a $1.00 annualized dividend and a dividend yield of 12.09%. Xerox’s dividend payout ratio is currently -9.06%.

Wall Street Analyst Weigh In

XRX has been the topic of several analyst reports. StockNews.com upgraded shares of Xerox from a “hold” rating to a “buy” rating in a research report on Saturday, November 9th. Morgan Stanley cut their price objective on Xerox from $10.00 to $8.00 and set an “underweight” rating on the stock in a report on Wednesday, October 30th. Loop Capital decreased their price target on shares of Xerox from $14.00 to $11.00 and set a “hold” rating for the company in a research report on Wednesday, August 14th. Finally, JPMorgan Chase & Co. lowered their price objective on Xerox from $11.00 to $8.00 and set an “underweight” rating for the company in a research report on Wednesday, October 30th. Three research analysts have rated the stock with a sell rating, one has issued a hold rating and one has assigned a buy rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $9.50.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Pacer Advisors Inc. raised its stake in shares of Xerox by 33.2% during the 3rd quarter. Pacer Advisors Inc. now owns 16,969,127 shares of the information technology services provider’s stock worth $176,140,000 after purchasing an additional 4,228,806 shares during the period. SG Capital Management LLC bought a new position in shares of Xerox during the 1st quarter valued at approximately $8,466,000. Mizuho Markets Americas LLC increased its stake in shares of Xerox by 282.4% during the 2nd quarter. Mizuho Markets Americas LLC now owns 353,682 shares of the information technology services provider’s stock worth $4,110,000 after purchasing an additional 261,180 shares during the last quarter. Edgestream Partners L.P. purchased a new position in Xerox in the first quarter valued at approximately $4,509,000. Finally, Acadian Asset Management LLC bought a new position in Xerox during the first quarter valued at $4,066,000. 85.36% of the stock is currently owned by hedge funds and other institutional investors.

About Xerox

Xerox Holdings Corporation, together with its subsidiaries, operates as a workplace technology company that integrates hardware, services, and software for enterprises in the Americas, Europe, the Middle East, Africa, India, and internationally. The company operates through two segments, Print and Other; and FITTLE.