Xerox (NYSE:XRX) Shares Gap Down - Should You Sell?

Xerox Holdings Co. (NYSE:XRX - Get Free Report)'s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $9.71, but opened at $9.46. Xerox shares last traded at $8.45, with a volume of 726,232 shares changing hands.

Analysts Set New Price Targets

Several research firms have issued reports on XRX. JPMorgan Chase & Co. dropped their target price on Xerox from $11.00 to $8.00 and set an "underweight" rating on the stock in a research report on Wednesday, October 30th. Morgan Stanley cut their price objective on Xerox from $10.00 to $8.00 and set an "underweight" rating for the company in a research report on Wednesday, October 30th. Finally, StockNews.com raised Xerox from a "hold" rating to a "buy" rating in a report on Tuesday. Three investment analysts have rated the stock with a sell rating, one has given a hold rating and one has given a buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $9.50.

Xerox Stock Performance

The firm has a fifty day moving average of $8.94 and a 200-day moving average of $9.74. The company has a quick ratio of 0.95, a current ratio of 1.11 and a debt-to-equity ratio of 2.61. The stock has a market capitalization of $1.06 billion, a price-to-earnings ratio of -0.80 and a beta of 1.59.

Xerox (NYSE:XRX - Get Free Report) last released its quarterly earnings data on Tuesday, October 29th. The information technology services provider reported $0.25 EPS for the quarter, missing the consensus estimate of $0.51 by ($0.26). Xerox had a positive return on equity of 7.57% and a negative net margin of 21.24%. The business had revenue of $1.53 billion during the quarter, compared to analysts' expectations of $1.63 billion. During the same quarter in the prior year, the firm earned $0.46 earnings per share. Xerox's quarterly revenue was down 7.5% on a year-over-year basis. As a group, sell-side analysts anticipate that Xerox Holdings Co. will post 1.3 EPS for the current year.

Institutional Trading of Xerox

Large investors have recently modified their holdings of the business. Gladius Capital Management LP purchased a new stake in shares of Xerox in the third quarter valued at $29,000. US Bancorp DE lifted its holdings in Xerox by 42.3% in the 3rd quarter. US Bancorp DE now owns 6,353 shares of the information technology services provider's stock valued at $66,000 after purchasing an additional 1,888 shares in the last quarter. International Assets Investment Management LLC boosted its stake in shares of Xerox by 938.0% during the 3rd quarter. International Assets Investment Management LLC now owns 8,304 shares of the information technology services provider's stock worth $800,000 after purchasing an additional 7,504 shares during the last quarter. KBC Group NV grew its holdings in shares of Xerox by 84.5% during the fourth quarter. KBC Group NV now owns 9,223 shares of the information technology services provider's stock worth $78,000 after buying an additional 4,224 shares in the last quarter. Finally, CWM LLC raised its position in shares of Xerox by 381.3% in the third quarter. CWM LLC now owns 10,897 shares of the information technology services provider's stock valued at $113,000 after buying an additional 8,633 shares during the last quarter. 85.36% of the stock is currently owned by institutional investors and hedge funds.

About Xerox

Xerox Holdings Corporation, together with its subsidiaries, operates as a workplace technology company that integrates hardware, services, and software for enterprises in the Americas, Europe, the Middle East, Africa, India, and internationally. The company operates through two segments, Print and Other; and FITTLE.