Xerox (NASDAQ:XRX) Stock Sees Unusually High Put Option Buying

Xerox Holdings Co. (NASDAQ:XRX) was the recipient of unusually large options trading on Thursday. Investors purchased 8,941 put options on the stock. This is an increase of approximately 192% compared to the typical volume of 3,066 put options.

Xerox Trading Down 37.8%

XRX traded down $1.05 during mid-day trading on Thursday, hitting $1.74. 12,679,347 shares of the stock were exchanged, compared to its average volume of 4,230,361. Xerox has a 1-year low of $1.19 and a 1-year high of $3.78. The firm’s fifty day moving average is $3.03 and its two-hundred day moving average is $2.54. The company has a market cap of $227.83 million, a PE ratio of -0.24 and a beta of 2.45. The company has a current ratio of 1.18, a quick ratio of 0.85 and a debt-to-equity ratio of 12.58.

Xerox (NASDAQ:XRX) last posted its quarterly earnings data on Thursday, October 29th. The information technology services provider reported $0.02 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.07) by $0.09. The business had revenue of $1.87 billion for the quarter. Xerox had a positive return on equity of 17.61% and a negative net margin of 11.93%. The firm’s revenue was down 4.7% compared to the same quarter last year. During the same period in the prior year, the company posted $0.20 EPS. Equities analysts forecast that Xerox will post 0.17 earnings per share for the current fiscal year.

Xerox Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Wednesday, September 30th will be given a dividend of $0.0250 per share. The ex-dividend date is Wednesday, September 30th. This represents a $0.10 dividend on an annualized basis and a dividend yield of 5.8%. Xerox’s payout ratio is -1.36%.

Analysts Set New Price Targets

A number of equities analysts recently commented on XRX shares. Citigroup cut Xerox from a “neutral” rating to a “sell” rating and decreased their target price for the stock from $3.45 to $2.50 in a report on Thursday, October 8th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Xerox in a report on Thursday, October 22nd. Needham & Company LLC set a $5.00 price objective on Xerox in a report on Tuesday, August 18th. Finally, Noble Financial started coverage on shares of Xerox in a report on Tuesday, August 18th. They set an “outperform” rating and a $5.00 price target on the stock. One analyst has rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Reduce” and a consensus price target of $4.17.

Xerox News Summary

Here are the key news stories impacting Xerox this week:

• Positive Sentiment: Debt reduction and maturity extension: Xerox announced an exchange transaction covering approximately $174 million of senior notes due in 2028. The deal is expected to reduce debt principal by about $53 million, extend the affected maturities to 2030 and preserve cash, supporting the company’s balance-sheet improvement efforts. Xerox Announces Exchange Transaction to Extend Portion of 2028 Debt Maturities and Reduce Overall Debt
• Neutral Sentiment: Quarterly results beat estimates: Xerox reported third-quarter revenue of roughly $1.87 billion, broadly in line with expectations, while reported adjusted earnings were approximately $0.06 per share versus consensus for a $0.07 loss. Other reports cite $0.02 per share, reflecting differences in the earnings metric used. However, earnings were down from $0.20 per share a year earlier. Xerox Q3 Earnings and Revenues Surpass Estimates
• Negative Sentiment: Profit outlook weakened: Xerox said its third-quarter loss widened and cut its fiscal 2026 adjusted-income outlook, signaling continued pressure on margins and operating performance. Revenue declined 4.7% year over year, and the company’s negative net margin, very high debt-to-equity ratio and sub-$1 billion market capitalization amplify the risk. Although Xerox maintained its revenue outlook, the lower earnings forecast outweighed the quarterly beat and debt-relief announcement for investors. Xerox Q3 Loss Widens, Cuts FY26 Adjusted Income View

Institutional Investors Weigh In On Xerox

Hedge funds and other institutional investors have recently bought and sold shares of the business. Renaissance Technologies LLC raised its holdings in Xerox by 926.4% in the 1st quarter. Renaissance Technologies LLC now owns 645,624 shares of the information technology services provider’s stock valued at $833,000 after acquiring an additional 582,724 shares during the last quarter. Bank of New York Mellon Corp purchased a new position in shares of Xerox in the 2nd quarter valued at $1,313,000. Paradigm Capital Management Inc. NY purchased a new stake in shares of Xerox during the 2nd quarter valued at about $5,626,000. Odyssean LLC increased its stake in Xerox by 522.0% during the 2nd quarter. Odyssean LLC now owns 203,988 shares of the information technology services provider’s stock worth $638,000 after buying an additional 171,192 shares during the period. Finally, Headlands Technologies LLC acquired a new stake in shares of Xerox during the second quarter valued at about $779,000. Institutional investors and hedge funds own 85.36% of the company’s stock.

Xerox Company Profile

Xerox Holdings Corporation (NASDAQ:XRX) is a technology and workplace solutions company that provides printing, document management and digital services to businesses and other organizations. The company serves customers across a range of industries, including government, education, healthcare, financial services and professional services.

Xerox offers office printers, multifunction devices, production printers and related supplies, software and support services. Its portfolio also includes document workflow and content-management solutions designed to help organizations digitize, automate and manage business processes.