Citigroup Issues Pessimistic Forecast for Xerox (NASDAQ:XRX) Stock Price

Xerox (NASDAQ:XRX) had its price objective lowered by Citigroup from $2.50 to $1.50 in a note issued to investors on Friday, Benzinga reports. The firm currently has a “sell” rating on the information technology services provider’s stock. Citigroup‘s price target indicates a potential upside of 2.39% from the company’s current price.

Other equities analysts have also recently issued reports about the stock. Weiss Ratings restated a “sell (d-)” rating on shares of Xerox in a research report on Thursday, October 22nd. Needham & Company LLC set a $5.00 price target on shares of Xerox in a research report on Tuesday, August 18th. Finally, Noble Financial initiated coverage on shares of Xerox in a research note on Tuesday, August 18th. They issued an “outperform” rating and a $5.00 price objective on the stock. One equities research analyst has rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Reduce” and an average price target of $3.83.

Xerox Price Performance

Shares of XRX stock traded down $0.20 during trading on Friday, hitting $1.47. The company had a trading volume of 29,332,786 shares, compared to its average volume of 4,447,232. The stock’s 50-day moving average price is $3.01 and its 200 day moving average price is $2.54. The firm has a market capitalization of $192.38 million, a P/E ratio of -0.20 and a beta of 2.45. The company has a debt-to-equity ratio of 12.58, a quick ratio of 0.85 and a current ratio of 1.18. Xerox has a one year low of $1.19 and a one year high of $3.78.

Xerox (NASDAQ:XRX) last released 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. Xerox had a positive return on equity of 17.61% and a negative net margin of 11.93%. The company had revenue of $1.87 billion for the quarter. During the same period last year, the company posted $0.20 earnings per share. The business’s revenue for the quarter was down 4.7% compared to the same quarter last year. Equities analysts expect that Xerox will post 0.17 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Squarepoint Ops LLC raised its stake in Xerox by 0.6% during the second quarter. Squarepoint Ops LLC now owns 584,825 shares of the information technology services provider’s stock worth $1,831,000 after acquiring an additional 3,689 shares in the last quarter. Vontobel Holding Ltd. boosted its stake in shares of Xerox by 41.5% in the 3rd 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. Integrated Wealth Concepts LLC bought a new stake in shares of Xerox during the 2nd quarter valued at approximately $28,000. Gamco Investors INC. ET AL grew its holdings in shares of Xerox by 1.8% during the 1st quarter. Gamco Investors INC. ET AL now owns 564,000 shares of the information technology services provider’s stock valued at $728,000 after purchasing an additional 9,800 shares during the last quarter. Finally, Gabelli Funds LLC grew its holdings in shares of Xerox by 17.2% during the 1st quarter. Gabelli Funds LLC now owns 68,000 shares of the information technology services provider’s stock valued at $88,000 after purchasing an additional 10,000 shares during the last quarter. Institutional investors and hedge funds own 85.36% of the company’s stock.

Key Xerox News

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

About Xerox

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.