Traders Purchase Large Volume of Xerox Call Options (NYSE:XRX)

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Xerox Holdings Co. (NYSE:XRX) was the recipient of some unusual options trading on Wednesday. Stock traders purchased 26,984 call options on the stock. This represents an increase of approximately 821% compared to the typical daily volume of 2,930 call options.

In related news, Director A. Scott Letier purchased 3,384 shares of Xerox stock in a transaction that occurred on Wednesday, October 27th. The shares were acquired at an average price of $17.84 per share, with a total value of $60,370.56. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, major shareholder Carl C. Icahn purchased 424,710 shares of Xerox stock in a transaction that occurred on Thursday, October 28th. The shares were bought at an average cost of $17.93 per share, for a total transaction of $7,615,050.30. The disclosure for this purchase can be found here. Insiders acquired 433,594 shares of company stock worth $7,778,381 in the last 90 days. Corporate insiders own 0.57% of the company’s stock.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in XRX. West Branch Capital LLC bought a new position in Xerox during the 2nd quarter worth $34,000. Liberty Wealth Management LLC raised its position in Xerox by 2,248.6% during the 2nd quarter. Liberty Wealth Management LLC now owns 1,738 shares of the information technology services provider’s stock worth $74,000 after purchasing an additional 1,664 shares during the last quarter. Berman Capital Advisors LLC raised its position in Xerox by 232.8% during the 3rd quarter. Berman Capital Advisors LLC now owns 2,456 shares of the information technology services provider’s stock worth $49,000 after purchasing an additional 1,718 shares during the last quarter. Spire Wealth Management raised its position in Xerox by 183.3% during the 3rd quarter. Spire Wealth Management now owns 3,873 shares of the information technology services provider’s stock worth $78,000 after purchasing an additional 2,506 shares during the last quarter. Finally, US Bancorp DE raised its position in Xerox by 69.8% during the 2nd quarter. US Bancorp DE now owns 4,474 shares of the information technology services provider’s stock worth $105,000 after purchasing an additional 1,839 shares during the last quarter. 80.95% of the stock is currently owned by institutional investors.

Shares of XRX stock opened at $21.06 on Friday. The stock’s fifty day moving average price is $19.92 and its two-hundred day moving average price is $22.00. The company has a market cap of $3.76 billion, a PE ratio of 14.23 and a beta of 1.68. Xerox has a fifty-two week low of $17.59 and a fifty-two week high of $26.96. The company has a debt-to-equity ratio of 0.71, a quick ratio of 1.60 and a current ratio of 1.88.

Xerox (NYSE:XRX) last released its quarterly earnings data on Tuesday, October 26th. The information technology services provider reported $0.48 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.43 by $0.05. Xerox had a return on equity of 6.56% and a net margin of 4.13%. The company had revenue of $1.76 billion for the quarter, compared to the consensus estimate of $1.81 billion. During the same quarter last year, the business posted $0.48 EPS. Xerox’s revenue for the quarter was up .6% on a year-over-year basis. On average, equities analysts predict that Xerox will post 1.5 EPS for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Monday, January 31st. Investors of record on Friday, December 31st will be issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 4.75%. The ex-dividend date of this dividend is Thursday, December 30th. Xerox’s dividend payout ratio (DPR) is 67.57%.

A number of equities research analysts recently issued reports on the company. Zacks Investment Research raised Xerox from a “strong sell” rating to a “hold” rating and set a $24.00 price target on the stock in a research report on Tuesday, August 24th. Morgan Stanley assumed coverage on Xerox in a report on Thursday, September 23rd. They issued an “underweight” rating and a $17.00 target price on the stock. Two equities research analysts have rated the stock with a sell rating and two have assigned a hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $47.60.

About Xerox

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 intelligent workplace services; and digital services that leverage its software capabilities in workflow automation, personalization and communication software, content management solutions, and digitization services.

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