Xerox Sees Unusually High Options Volume (NASDAQ:XRX)

Xerox Holdings Co. (NASDAQ:XRX) saw unusually large options trading on Thursday. Investors purchased 10,301 call options on the company. This represents an increase of approximately 130% compared to the average volume of 4,479 call options.

Xerox Price Performance

Shares of XRX opened at $3.49 on Friday. The company’s 50-day moving average is $3.02 and its 200-day moving average is $2.31. The company has a debt-to-equity ratio of 14.04, a current ratio of 1.18 and a quick ratio of 0.85. The firm has a market capitalization of $456.42 million, a PE ratio of -0.42 and a beta of 2.40. Xerox has a fifty-two week low of $1.19 and a fifty-two week high of $5.22.

Xerox (NASDAQ:XRX) last announced its earnings results on Thursday, April 30th. The information technology services provider reported ($0.11) EPS for the quarter, topping the consensus estimate of ($0.20) by $0.09. Xerox had a negative net margin of 14.09% and a negative return on equity of 12.08%. The business had revenue of $1.85 billion during the quarter, compared to the consensus estimate of $1.78 billion. During the same quarter in the previous year, the firm posted ($0.06) EPS. Xerox’s revenue was up 26.7% compared to the same quarter last year. Equities analysts forecast that Xerox will post 0.03 EPS for the current year.

Xerox Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Tuesday, June 30th will be issued a dividend of $0.025 per share. This represents a $0.10 dividend on an annualized basis and a dividend yield of 2.9%. The ex-dividend date is Tuesday, June 30th. Xerox’s payout ratio is currently -1.20%.

Hedge Funds Weigh In On Xerox

Large investors have recently made changes to their positions in the company. Gabelli Funds LLC lifted its holdings in shares of Xerox by 4.5% during the second quarter. Gabelli Funds LLC now owns 58,000 shares of the information technology services provider’s stock worth $306,000 after buying an additional 2,500 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Xerox by 4.3% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 69,047 shares of the information technology services provider’s stock valued at $333,000 after acquiring an additional 2,838 shares in the last quarter. CANADA LIFE ASSURANCE Co grew its stake in shares of Xerox by 1.9% in the second quarter. CANADA LIFE ASSURANCE Co now owns 164,566 shares of the information technology services provider’s stock valued at $868,000 after acquiring an additional 3,138 shares in the last quarter. Cetera Investment Advisers increased its position in Xerox by 33.2% during the second quarter. Cetera Investment Advisers now owns 17,320 shares of the information technology services provider’s stock worth $91,000 after acquiring an additional 4,319 shares during the period. Finally, Private Management Group Inc. raised its stake in Xerox by 0.5% in the 3rd quarter. Private Management Group Inc. now owns 1,051,054 shares of the information technology services provider’s stock worth $3,952,000 after purchasing an additional 4,986 shares in the last quarter. Institutional investors own 85.36% of the company’s stock.

Analysts Set New Price Targets

Several equities analysts recently weighed in on the stock. Zacks Research raised shares of Xerox from a “strong sell” rating to a “hold” rating in a research note on Thursday, April 30th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Xerox in a research report on Friday, July 24th. Two investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Reduce” and an average price target of $2.50.

Xerox News Roundup

Here are the key news stories impacting Xerox this week:

• Positive Sentiment: Q2 earnings significantly exceeded expectations. Xerox reported adjusted earnings of $0.36 per share, versus the $0.06 consensus estimate and a $0.64 loss in the year-ago quarter. GAAP net income was $13 million, or $0.07 per share. Xerox Holdings Corporation Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Revenue and profitability improved. Second-quarter revenue rose 22% year over year to $1.922 billion, while adjusted operating income reached $203 million, representing a 10.6% margin. The results support management’s strategy of stabilizing revenue and increasing profitability. Xerox Releases Second-Quarter Results
• Positive Sentiment: Xerox raised its 2026 outlook. The company now expects approximately $7.6 billion in revenue, $555 million to $605 million in adjusted operating income, and about $250 million in free cash flow. It also increased its Lexmark gross cost-synergy target by $50 million to at least $350 million and reduced debt by more than $200 million during the quarter. Xerox Surges After Strong Q2 Results and Higher 2026 Outlook
• Neutral Sentiment: Trading activity amplified the move. Call-option volume was roughly 130% above typical levels, while heavy short interest contributed to a short squeeze. These factors can support momentum but may also make the advance volatile and less durable. Heavily Shorted Xerox Stock Sees Short Squeeze Surge After Earnings
• Negative Sentiment: Some earnings quality risks remain. Results included a $105 million pretax benefit from recognized tariff receivables, and free cash flow was only $11 million in the quarter. Xerox also continues to carry substantial leverage, meaning execution on cost savings and debt reduction remains important.

About Xerox

Xerox Holdings Corporation (NYSE: XRX) is a global provider of document management technology and services. The company designs and manufactures a broad range of multifunction printers, production printers, digital presses and related consumables. In addition to its hardware offerings, Xerox delivers software and workflow automation solutions, managed print services and cloud-based document platforms that help organizations optimize their information-intensive processes.

Founded in 1906 as The Haloid Photographic Company, Xerox pioneered xerographic imaging in the late 1940s, launching the first plain-paper copier in 1959.