Xerox (NASDAQ:XRX) Stock Gets Price Target Cut from Citigroup

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

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

Xerox Stock Down 12.0%

Shares of NASDAQ XRX traded down $0.20 during trading hours 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. Xerox has a 1-year low of $1.19 and a 1-year high of $3.78. The company has a quick ratio of 0.85, a current ratio of 1.18 and a debt-to-equity ratio of 12.58. The firm’s 50 day moving average is $3.01 and its 200-day moving average is $2.54. The stock has a market capitalization of $192.38 million, a P/E ratio of -0.20 and a beta of 2.45.

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

Institutional Investors Weigh In On Xerox

Hedge funds have recently bought and sold shares of the stock. Squarepoint Ops LLC grew its holdings in Xerox by 0.6% in the 2nd quarter. Squarepoint Ops LLC now owns 584,825 shares of the information technology services provider’s stock valued at $1,831,000 after buying an additional 3,689 shares in the last quarter. Vontobel Holding Ltd. lifted its holdings in shares of Xerox by 41.5% during the third quarter. Vontobel Holding Ltd. now owns 22,840 shares of the information technology services provider’s stock worth $72,000 after buying an additional 6,700 shares in the last quarter. Integrated Wealth Concepts LLC acquired a new stake in shares of Xerox during the second quarter worth $28,000. Gamco Investors INC. ET AL lifted its holdings in shares of Xerox by 1.8% during the first quarter. Gamco Investors INC. ET AL now owns 564,000 shares of the information technology services provider’s stock worth $728,000 after buying an additional 9,800 shares in the last quarter. Finally, Gabelli Funds LLC boosted its position in shares of Xerox by 17.2% in the first quarter. Gabelli Funds LLC now owns 68,000 shares of the information technology services provider’s stock valued at $88,000 after acquiring an additional 10,000 shares during the period. 85.36% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Xerox

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

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.