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

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

Institutional Trading of Xerox

A number of institutional investors have recently modified their holdings of XRX. Integrated Wealth Concepts LLC bought a new position in Xerox during the 2nd quarter worth $28,000. Sowell Financial Services LLC acquired a new stake in shares of Xerox during the 3rd quarter worth $34,000. Great Lakes Advisors LLC bought a new position in shares of Xerox in the second quarter worth $45,000. Chicago Partners Investment Group LLC bought a new position in shares of Xerox in the first quarter worth $25,000. Finally, Vontobel Holding Ltd. raised its stake in Xerox by 41.5% in the third quarter. Vontobel Holding Ltd. now owns 22,840 shares of the information technology services provider’s stock valued at $72,000 after purchasing an additional 6,700 shares in the last quarter. 85.36% of the stock is currently owned by institutional investors.

Key Stories Impacting Xerox

Here are the key news stories impacting Xerox this week:

• Positive Sentiment: Third-quarter results exceeded estimates. Xerox reported adjusted earnings of approximately $0.06 per share, versus consensus expectations for a $0.07 loss, while revenue of about $1.87 billion was broadly ahead of estimates. However, revenue still declined 4.7% from the prior year. Xerox Q3 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Debt-reduction measures provide some balance-sheet support. Xerox announced an exchange transaction covering roughly $174 million of 2028 senior notes, extending maturities to 2030 and reducing debt principal by about $53 million while preserving cash. Xerox Debt Exchange Transaction
• Neutral Sentiment: Strategic pressure is increasing. STARTEEPO, Xerox’s third-largest shareholder with a 7.34% stake in shares and options, supported debt-reduction efforts but urged the board to consider strategic alternatives for Xerox Financial Services and the broader company. STARTEEPO Comments on Xerox Results
• Negative Sentiment: Profit and cash-flow forecasts were reduced. Xerox lowered its 2026 adjusted operating-income outlook to approximately $450 million-$475 million, a reduction of up to $130 million only three months after raising guidance. The company also cut its free-cash-flow forecast, citing higher costs, weaker cash generation and other operating headwinds, although it maintained its full-year revenue outlook.
• Negative Sentiment: The dividend suspension and legal investigations worsen sentiment. Xerox’s board suspended its dividend as it prioritizes liquidity and debt reduction. Multiple law firms also announced investigations into whether investors received materially misleading information, adding potential legal and reputational risk. Rosen Xerox Investigation

Analyst Ratings Changes

A number of equities analysts have weighed in on the stock. Needham & Company LLC set a $5.00 target price on shares of Xerox in a research note on Tuesday, August 18th. Weiss Ratings restated a “sell (d-)” rating on shares of Xerox in a research report on Thursday, October 22nd. Citigroup dropped their price objective on shares of Xerox from $2.50 to $1.50 and set a “sell” rating for the company in a research report on Friday. Finally, Noble Financial began coverage on Xerox in a report on Tuesday, August 18th. They set an “outperform” rating and a $5.00 price objective on the stock. One research 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 MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus price target of $3.83.

Xerox Trading Down 12.0%

NASDAQ XRX opened at $1.47 on Friday. Xerox has a 12 month low of $1.19 and a 12 month high of $3.78. The stock has a 50-day simple moving average of $2.98 and a 200 day simple moving average of $2.53. The company has a current ratio of 1.14, a quick ratio of 0.85 and a debt-to-equity ratio of 12.58. The company has a market capitalization of $192.38 million, a PE ratio of -0.16 and a beta of 2.45.

Xerox (NASDAQ:XRX) last posted its earnings results on Thursday, October 29th. The information technology services provider reported $0.02 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.07) by $0.09. The company had revenue of $1.87 billion during the quarter. Xerox had a positive return on equity of 53.07% and a negative net margin of 15.40%. Xerox’s quarterly revenue was down 4.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.20 earnings per share. Research analysts forecast that Xerox will post 0.17 EPS for the current year.

Xerox Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, October 30th. Shareholders of record on Wednesday, September 30th were issued a dividend of $0.0250 per share. This represents a $0.10 dividend on an annualized basis and a yield of 6.8%. The ex-dividend date was Wednesday, September 30th. Xerox’s dividend payout ratio is -1.10%.

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.