Wedge Capital Management L L P NC, a North Carolina-based investment management firm, has significantly increased its stake in Xerox Holdings Co. (NYSE:XRX) during the second quarter of this year, according to the company’s recent disclosure with the Securities & Exchange Commission. The firm now owns 206,613 shares of Xerox, marking a significant rise of 1,126.8% as it acquired an additional 189,771 shares during this period.
Based on the filing submitted to the Securities & Exchange Commission, Wedge Capital Management L L P NC’s stake in Xerox amounts to approximately $3,076,000 as of their most recent filing date. This indicates that Wedge Capital Management has approximately 0.13% ownership of Xerox.
In addition to the increase in stake, Xerox recently announced a quarterly dividend payment scheduled for Tuesday, October 31st. Shareholders who held Xerox stock as of Friday, September 29th will receive a dividend of $0.25 per share. On an annualized basis, this represents a dividend payout of $1.00 per share and offers a dividend yield of 6.30%.
It is worth noting that investors looking to benefit from this dividend should take into account that Thursday, September 28th is the ex-dividend date for this particular dividend distribution by Xerox.
Xerox’s current payout ratio stands at -58.14%, indicating that the company’s dividend payments exceed its earnings and it may be utilizing other financial resources to support its payout obligations.
As investors evaluate their strategies and explore various investment options within the information technology services sector, these developments surrounding Wedge Capital Management’s increased stake and Xerox’s upcoming dividend payment may be noteworthy considerations.
Please note that this analysis is based on available public information up until September 27th, 2023 and investors are advised to conduct further due diligence before making any investment decisions.
[bs_slider_forecast ticker=”XRX”]
Xerox Holdings Co. Sees Changes in Ownership and Positive Outlook for Growth
Xerox Holdings Co. (NYSE:XRX) has recently witnessed changes in its ownership as several institutional investors have made adjustments to their positions in the company’s stock. Arden Trust Co made a strategic move by acquiring a new position in Xerox during the second quarter of this year, investing approximately $415,000. Similarly, Xponance Inc. raised its stake in Xerox by 49.5% during the same period, now owning 27,796 shares valued at $414,000 after purchasing an additional 9,206 shares.
Another institutional investor, Counterpoint Mutual Funds LLC, also entered the picture by acquiring a new stake in Xerox worth around $127,000. Transcend Capital Advisors LLC followed suit with a new stake valued at approximately $300,000 during the same quarter. Lastly, Sound Income Strategies LLC demonstrated their confidence in Xerox by raising their stake by 8.1%, resulting in ownership of 398,346 shares valued at $5,931,000 after purchasing an additional 29,934 shares.
It is important to note that these institutional investors collectively own a significant portion of Xerox’s stock – precisely 83.53% as per recent reports.
In other news related to Xerox’s performance and prospects for growth, StockNews.com assumed coverage on the company and issued a “buy” rating on its stock earlier this year on Thursday, August 17th. This positive outlook was also supported by three research analysts who rated the stock with a sell rating while one analyst recommended buying it. Analyzing data from Bloomberg reveals that Xerox currently holds a consensus rating of “Hold” with an average target price estimated at $12.75.
On Wednesday morning market session on September 27th, Xerox Holdings Co.’s stock opened at $15.88 on the New York Stock Exchange (NYSE). The company maintains a debt-to-equity ratio of 0.66, a current ratio of 1.15, and a quick ratio of 0.88, indicating firm financial strength. The stock’s one-year low stands at $11.80, with a one-year high at $18.00.
Technical analysis indicates that Xerox has been performing steadily, as observed from its 50-day simple moving average standing at $15.87 and its two-hundred-day simple moving average valued at $15.17.
Xerox previously announced its second-quarter earnings results on Tuesday, July 25th, reporting an impressive $0.44 EPS for the quarter. This exceeded analysts’ consensus estimates of $0.32 by an impressive $0.12 per share. The company generated revenue of $1.75 billion during the quarter, in line with market expectations.
In terms of profitability ratios, Xerox demonstrated a positive return on equity (ROE) of 9.89% and had a slightly negative net margin of 3.52%. Despite minor changes in quarterly revenue compared to the previous year (+0.4%), the company showcased stable performance overall.
Equity analysts predict that Xerox Holdings Co.’s strong performance will continue into the remainder of this fiscal year, estimating an EPS around 1.7 for the period.
With substantial interest from institutional investors and favorable analyst ratings for both short and long-term investments in Xerox, it appears that the company is well-positioned to maintain its growth trajectory and deliver positive results moving forward.
