Xerox (XRX) Downgraded by Zacks Investment Research

Xerox (NYSE:XRX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Friday.

According to Zacks, “Xerox Corporation reported mixed first-quarter 2018 results, wherein the company’s bottom line lagged the Zacks Consensus Estimate but the top line surpassed the same. We appreciate Xerox’s continuous efforts to expand its Small and Mid-sized (SMB) coverage through distribution acquisitions. The company has a solid track record strong margins which it has been attaining through cost and productivity initiatives. Xerox’s post-sale driven business model supports strong cash flows that help it to make strategic investments and penetrate in higher growth markets. However, the company is grappling with decreased demand for paper-related systems and products, while its attempts to leverage the business process outsourcing market failed to lend a growth momentum. Xerox terminated its previously announced merger with Fuji Xerox. Shares of Xerox underperformed its industry in the past year.”

A number of other equities research analysts also recently issued reports on the company. JPMorgan Chase & Co. lowered their price target on Xerox from $41.00 to $40.00 and set an “overweight” rating for the company in a research report on Tuesday, February 13th. UBS raised Xerox from a “neutral” rating to a “buy” rating in a research report on Monday, February 5th. Loop Capital reissued a “buy” rating on shares of Xerox in a research report on Thursday, February 1st. Standpoint Research reissued a “hold” rating on shares of Xerox in a research report on Wednesday, January 31st. Finally, ValuEngine raised Xerox from a “hold” rating to a “buy” rating in a research report on Saturday, April 21st. Six investment analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. The company has an average rating of “Buy” and a consensus target price of $35.81.

XRX stock opened at $27.91 on Friday. Xerox has a 12-month low of $27.11 and a 12-month high of $37.42. The company has a quick ratio of 1.39, a current ratio of 1.71 and a debt-to-equity ratio of 0.86. The stock has a market cap of $7.16 billion, a price-to-earnings ratio of 8.02 and a beta of 1.18.

Xerox (NYSE:XRX) last posted its quarterly earnings results on Thursday, May 3rd. The information technology services provider reported $0.68 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.73 by ($0.05). Xerox had a net margin of 1.74% and a return on equity of 17.08%. The firm had revenue of $2.44 billion for the quarter, compared to analysts’ expectations of $2.39 billion. During the same period last year, the firm posted $0.15 EPS. Xerox’s revenue was down .8% on a year-over-year basis. research analysts anticipate that Xerox will post 3.49 earnings per share for the current year.

Several institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. lifted its stake in shares of Xerox by 0.7% during the fourth quarter. BlackRock Inc. now owns 15,067,064 shares of the information technology services provider’s stock worth $439,206,000 after purchasing an additional 98,850 shares in the last quarter. LSV Asset Management lifted its stake in shares of Xerox by 0.6% during the first quarter. LSV Asset Management now owns 6,291,831 shares of the information technology services provider’s stock worth $181,078,000 after purchasing an additional 34,869 shares in the last quarter. Boston Partners acquired a new position in shares of Xerox during the first quarter worth about $180,292,000. Dimensional Fund Advisors LP lifted its stake in shares of Xerox by 1.3% during the first quarter. Dimensional Fund Advisors LP now owns 5,245,481 shares of the information technology services provider’s stock worth $150,967,000 after purchasing an additional 69,168 shares in the last quarter. Finally, TIAA CREF Investment Management LLC lifted its stake in shares of Xerox by 31.4% during the fourth quarter. TIAA CREF Investment Management LLC now owns 3,979,223 shares of the information technology services provider’s stock worth $115,994,000 after purchasing an additional 951,355 shares in the last quarter. Institutional investors own 83.50% of the company’s stock.

Xerox Company Profile

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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