Zacks Investment Research lowered shares of Xerox (NYSE:XRX) from a buy rating to a hold rating in a report released on Saturday, Zacks.com reports.

According to Zacks, “Xerox is executing a Strategic Transformation program to achieve productivity and cost reduction. The company has an aggressive product development program in new high growth markets. It continues to maintain a solid track record of strong margins, which it has been attaining through cost and productivity initiatives. Xerox’s post-sale driven business model provides significant recurring revenue and cash generation. In the past six months, the company's shares have outperformed the industry. On the flip side, company continues to grapple with decreased demand for paper-related systems and products. Global presence exposes Xerox to risks associated with unfavorable foreign currency movements. Large number of substitutes is a major threat to company’s business, which has largely affected the profit margin of Xerox.”

Several other brokerages have also recently commented on XRX. Credit Suisse Group assumed coverage on shares of Xerox in a research note on Thursday, April 11th. They set an outperform rating and a $42.00 price objective for the company. TheStreet raised shares of Xerox from a c+ rating to a b- rating in a research note on Friday, February 22nd. Standpoint Research cut shares of Xerox from a buy rating to a hold rating in a research note on Friday, February 22nd. Finally, ValuEngine raised shares of Xerox from a sell rating to a hold rating in a research note on Thursday, February 7th. Five analysts have rated the stock with a hold rating and three have issued a buy rating to the company’s stock. Xerox has a consensus rating of Hold and an average target price of $36.60.

Shares of NYSE:XRX opened at $34.53 on Friday. The company has a market cap of $7.94 billion, a P/E ratio of 9.98 and a beta of 1.70. Xerox has a 12 month low of $18.58 and a 12 month high of $34.68. The company has a debt-to-equity ratio of 0.85, a current ratio of 1.44 and a quick ratio of 1.19.

Xerox (NYSE:XRX) last issued its quarterly earnings data on Tuesday, January 29th. The information technology services provider reported $1.14 EPS for the quarter, missing the consensus estimate of $1.16 by ($0.02). The firm had revenue of $2.53 billion for the quarter, compared to analysts’ expectations of $2.60 billion. Xerox had a net margin of 3.67% and a return on equity of 16.81%. Xerox’s revenue was down 7.8% on a year-over-year basis. During the same period in the prior year, the firm posted $1.04 EPS. As a group, equities research analysts anticipate that Xerox will post 3.76 earnings per share for the current year.

The business also recently declared a quarterly dividend, which will be paid on Tuesday, April 30th. Shareholders of record on Friday, March 29th will be paid a $0.25 dividend. The ex-dividend date of this dividend is Thursday, March 28th. This represents a $1.00 dividend on an annualized basis and a yield of 2.90%. Xerox’s dividend payout ratio is presently 28.90%.

Hedge funds have recently added to or reduced their stakes in the business. Water Island Capital LLC grew its stake in Xerox by 27.8% in the 4th quarter. Water Island Capital LLC now owns 347,913 shares of the information technology services provider’s stock worth $6,875,000 after buying an additional 75,751 shares in the last quarter. First Hawaiian Bank lifted its holdings in shares of Xerox by 534.9% in the 1st quarter. First Hawaiian Bank now owns 3,822 shares of the information technology services provider’s stock worth $122,000 after acquiring an additional 3,220 shares during the last quarter. Eubel Brady & Suttman Asset Management Inc. lifted its holdings in shares of Xerox by 3.9% in the 3rd quarter. Eubel Brady & Suttman Asset Management Inc. now owns 272,493 shares of the information technology services provider’s stock worth $7,352,000 after acquiring an additional 10,221 shares during the last quarter. The Manufacturers Life Insurance Company lifted its holdings in shares of Xerox by 3.3% in the 3rd quarter. The Manufacturers Life Insurance Company now owns 230,077 shares of the information technology services provider’s stock worth $6,207,000 after acquiring an additional 7,379 shares during the last quarter. Finally, QUANTRES ASSET MANAGEMENT Ltd bought a new stake in shares of Xerox in the 4th quarter worth approximately $763,000. 85.14% of the stock is owned by institutional investors and hedge funds.

Xerox Company Profile

Xerox Corporation designs, develops, and sells document management systems and solutions worldwide. It offers intelligent workplace services, including managed print services; digitization services; and digital solutions, such as workflow automation, personalization and communication software, and content management.

Featured Story: How accurate is the Rule of 72?

Get a free copy of the Zacks research report on Xerox (XRX)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Xerox (NYSE:XRX)

Receive News & Ratings for Xerox Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Xerox and related companies with MarketBeat.com's FREE daily email newsletter.