Stock Traders Buy Large Volume of Put Options on Xerox (NASDAQ:XRX)

Xerox Holdings Co. (NASDAQ:XRX) was the target of some unusual options trading activity on Thursday. Traders acquired 8,941 put options on the stock. This represents an increase of approximately 192% compared to the average volume of 3,066 put options.

Hedge Funds Weigh In On Xerox

Institutional investors have recently made changes to their positions in the stock. Paradigm Capital Management Inc. NY bought a new stake in Xerox in the second quarter valued at approximately $5,626,000. Renaissance Technologies LLC increased its stake in Xerox by 926.4% during the 1st quarter. Renaissance Technologies LLC now owns 645,624 shares of the information technology services provider’s stock valued at $833,000 after purchasing an additional 582,724 shares in the last quarter. Bank of New York Mellon Corp bought a new stake in Xerox in the 2nd quarter worth about $1,313,000. Headlands Technologies LLC purchased a new stake in Xerox during the 2nd quarter valued at $779,000. Finally, Investors Asset Management of Georgia Inc. GA ADV bought a new stake in shares of Xerox during the 3rd quarter valued at $607,000. Institutional investors own 85.36% of the company’s stock.

Wall Street Analyst Weigh In

A number of research analysts have commented on XRX shares. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Xerox in a report on Thursday, October 22nd. Citigroup downgraded shares of Xerox from a “neutral” rating to a “sell” rating and dropped their target price for the stock from $3.45 to $2.50 in a research report on Thursday, October 8th. Needham & Company LLC set a $5.00 target price on Xerox in a report on Tuesday, August 18th. Finally, Noble Financial assumed coverage on Xerox in a report on Tuesday, August 18th. They set an “outperform” rating and a $5.00 price objective on the stock. One investment analyst has rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, Xerox presently has a consensus rating of “Reduce” and an average price target of $4.17.

Key Stories Impacting Xerox

Here are the key news stories impacting Xerox this week:

• Positive Sentiment: Xerox reported third-quarter adjusted EPS above expectations, while revenue of approximately $1.87 billion was broadly in line with estimates. However, revenue fell 4.7% year over year and EPS declined from $0.20 in the prior-year quarter. Xerox Q3 earnings and revenues
• Positive Sentiment: The company announced a debt exchange covering about $174 million of 2028 notes, extending maturities to 2030, reducing principal by approximately $53 million and preserving cash. The move supports Xerox’s efforts to reduce leverage and improve liquidity. Xerox debt exchange announcement
• Neutral Sentiment: Options activity was unusually bearish, with investors purchasing 8,941 put options—roughly 192% above typical volume—indicating heightened hedging or speculation around the earnings release.
• Negative Sentiment: Xerox cut its 2026 adjusted operating-income forecast to $450 million–$475 million, a reduction of as much as $130 million only three months after raising its outlook. The company also lowered its free-cash-flow expectations while maintaining its revenue outlook. Xerox cuts 2026 forecasts
• Negative Sentiment: The board suspended Xerox’s dividend, removing an important source of shareholder income as the company prioritizes cash preservation and balance-sheet management. Xerox forecast and dividend suspension
• Negative Sentiment: Several law firms announced investigations into whether Xerox provided materially misleading information about its business and forecasts. These notices followed the sharp outlook reduction and could create additional legal and reputational risks, although no wrongdoing has been established. Xerox investor investigation notice

Xerox Price Performance

Shares of NASDAQ:XRX opened at $1.66 on Friday. The company has a debt-to-equity ratio of 12.58, a current ratio of 1.18 and a quick ratio of 0.85. Xerox has a one year low of $1.19 and a one year high of $3.78. The company has a market cap of $217.99 million, a price-to-earnings ratio of -0.22 and a beta of 2.45. The firm has a 50 day simple moving average of $3.01 and a 200 day simple moving average of $2.54.

Xerox (NASDAQ:XRX) last issued its quarterly earnings results on Thursday, October 29th. The information technology services provider reported $0.02 earnings per share for the quarter, topping analysts’ consensus estimates 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 firm had revenue of $1.87 billion during the quarter. During the same quarter in the previous year, the business posted $0.20 earnings per share. The business’s revenue was down 4.7% on a year-over-year basis. Research analysts predict that Xerox will post 0.17 earnings per share for the current fiscal year.

Xerox Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Wednesday, September 30th will be paid a $0.0250 dividend. This represents a $0.10 dividend on an annualized basis and a dividend yield of 6.0%. The ex-dividend date is Wednesday, September 30th. Xerox’s payout ratio is presently -1.36%.

Xerox Company Profile

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.