Xerox Corporation (XRX) Good Days Over?

Analysts at Citigroup, assumed coverage of Xerox Corporation (NYSE:XRX) with Buy recommendation, according to their opinion released on July 20. JP Morgan analysts have downgraded their rating of XRX stock from Overweight to Neutral in a separate flash note to investors on May 14. Analysts at Cross Research downgraded the stock to a Hold call from its previous Buy stance, in a research note that dated back to May 14.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Xerox Corporation (NYSE:XRX)’s prospects. The earliest insider trade took place on 11/06/2018. Feldman Michael David parted with a total of 3.73 thousand shares of company at average share price of $29. The total for the sales was set at $108.14 thousand. After this transaction, the Executive Vice President account balance stood at 2.87 thousand shares. The stock lost -23.66 percent since that insider sale. On 08/03/2018, Tessler Herve, Executive Vice President, sold 16.57 thousand shares at a price per share of $26.03. This removed 431.24 thousand shares from the insider’s fortune and the stock saw a -14.94 percent retreat in value since the news became public. This transaction left 34.65 thousand shares in the Executive Vice President account. On 07/27/2018, Chairman Cozza Keith performed a purchase transaction worth $1.27 million. This purchase at $25.42 each has added 50 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -12.9 percent decrease since the transaction was reported. The insider now is left with 50 thousand shares remaining in the account. Icahn Carl C, who performs the job, sold 140.01 thousand shares for $4.55 million. The disposal occurred on 02/05/2018 was priced at $32.5 per share. The share price plunged -31.88 percent since the reporting date. Icahn Carl C now left with a stake of 23.46 million XRX stock worth $519.32 million after the insider selling.

Xerox Corporation (XRX) is expected to jump by 49.05 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $37-month high price target. This represents a whopping 67.12 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $31, which represents a return potential of 40.02 percent when compared to the closing price of the stock of $22.14 on Friday, January 11. The lowest price target for the stock is $27.5 — slightly more than 24.21 percent from XRX’s current share price.

The shares are currently floating around the first support level of $21.7. Below this, the next support is placed in the zone of $21.26. Till the time, the XRX stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 48.14 on daily chart, which may remain a cause for concern. If the price breaks below $21.26 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $22.36 mark may result into a pull-back move towards $22.58 level.

XRX shares dropped -0.01 points or -0.05 percent on Friday to $22.14 with a heavy trade volume of 4.391 million shares. After opening the session at $21.94, the shares went as high as $22.14 and as low as $21.48, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $5.28 billion and now has 238.39 million shares outstanding. Xerox Corporation (XRX) stock has lost -11.58 percent of market value in 21 trading days.

XRX stock has a trailing 3-year beta of 1.35, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.62 a share in the trailing twelve months. The stock’s value has surged 12.04 percent year to date (YTD) against a decline of -27.05 percent in 12 month’s time. The company’s shares still trade -40.83 percent away from its 1-year high of $37.42 and 19.19 percent up from 52-week low of $18.58. The average consensus rating on the company is 0, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Xerox Corporation (XRX) are trading at a P/E ratio of 14.28 times earnings reported for the past 12 months. The industry XRX operates in has an average P/E of 24.68. Its P/E ratio went as low as 5.29X and as high as 10.64 over the 5-year span. Further, it is sporting a 0.53 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.11. 39.8 percent is the gross profit margin for Xerox Corporation and operating margin sits at 8.4 percent. Along with this, the net profit margin is 0.2 percent.