Investors Buy Large Volume of Xerox Call Options (NASDAQ:XRX)

Xerox Holdings Co. (NASDAQ:XRX) saw unusually large options trading on Thursday. Investors acquired 4,535 call options on the stock. This is an increase of approximately 49% compared to the average daily volume of 3,034 call options.

Xerox Stock Up 20.0%

Shares of NASDAQ XRX opened at $2.70 on Friday. The company has a market cap of $353.11 million, a P/E ratio of -0.33 and a beta of 2.28. The company has a quick ratio of 0.79, a current ratio of 1.18 and a debt-to-equity ratio of 14.04. The business has a 50-day simple moving average of $1.56 and a two-hundred day simple moving average of $2.27. Xerox has a 52 week low of $1.19 and a 52 week high of $6.80.

Xerox (NASDAQ:XRX) last issued its quarterly earnings results on Thursday, April 30th. The information technology services provider reported ($0.11) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.20) by $0.09. The firm had revenue of $1.85 billion during the quarter, compared to the consensus estimate of $1.78 billion. Xerox had a negative return on equity of 12.08% and a negative net margin of 14.09%.The company’s revenue for the quarter was up 26.7% on a year-over-year basis. During the same quarter last year, the company posted ($0.06) EPS. Research analysts anticipate that Xerox will post 0.29 earnings per share for the current fiscal year.

Xerox Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, April 30th. Stockholders of record on Tuesday, March 31st were given a dividend of $0.025 per share. This represents a $0.10 dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date was Tuesday, March 31st. Xerox’s dividend payout ratio (DPR) is -1.22%.

Analysts Set New Price Targets

XRX has been the subject of several recent research reports. Weiss Ratings reissued a “sell (d-)” rating on shares of Xerox in a report on Monday. Zacks Research lowered Xerox from a “hold” rating to a “strong sell” rating in a report on Tuesday, March 3rd. Finally, Citigroup reissued a “neutral” rating and issued a $2.50 price objective (down from $3.50) on shares of Xerox in a report on Friday, January 30th. One equities research analyst has rated the stock with a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Sell” and an average price target of $2.50.

Institutional Trading of Xerox

Large investors have recently modified their holdings of the business. First Eagle Investment Management LLC bought a new stake in shares of Xerox during the 3rd quarter valued at about $4,333,000. Y Intercept Hong Kong Ltd bought a new stake in Xerox in the third quarter valued at approximately $1,871,000. JPMorgan Chase & Co. lifted its position in Xerox by 92.7% in the third quarter. JPMorgan Chase & Co. now owns 1,392,028 shares of the information technology services provider’s stock valued at $5,234,000 after purchasing an additional 669,810 shares during the last quarter. Segall Bryant & Hamill LLC bought a new stake in Xerox in the third quarter valued at approximately $1,629,000. Finally, Verus Capital Partners LLC increased its stake in shares of Xerox by 510.4% during the third quarter. Verus Capital Partners LLC now owns 70,200 shares of the information technology services provider’s stock valued at $264,000 after buying an additional 58,700 shares during the period. Institutional investors own 85.36% of the company’s stock.

Key Headlines Impacting Xerox

Here are the key news stories impacting Xerox this week:

• Positive Sentiment: Q1 revenue and EPS vs. estimates: Xerox reported Q1 revenue of about $1.85B (up ~27% YoY) and reported EPS of -$0.11, beating consensus revenue and EPS estimates — a key near-term catalyst for the rally. Xerox Releases First-Quarter Results
• Positive Sentiment: Market reaction / momentum: Analysts and headlines highlighted the beat and CEO optimism, driving intraday gains and a breakout after weeks of being heavily shorted. News coverage points to the earnings beat and management tone as the main reasons for the surge. Why Xerox Stock Is Surging On Friday?
• Positive Sentiment: Short-squeeze and options activity: High short interest plus heavy call buying and unusual options flows amplified the move higher — traders report spikes in call volume and short-covering that accelerated the rally. Short Squeeze And Earnings
• Neutral Sentiment: Product/service update: Xerox launched “Xerox IT as a Service” targeting SMBs — a growth initiative that supports revenue diversification but will take time to scale. Xerox Launches Xerox IT as a Service
• Neutral Sentiment: Earnings detail and management commentary: The Q1 earnings transcript and slide deck show management is focused on stabilizing revenue, expanding adjusted operating margin and improving liquidity — useful for assessing sustainability of the recovery. Xerox (XRX) Q1 2026 Earnings Transcript
• Negative Sentiment: Profitability and leverage remain concerns: Xerox is still reporting negative net margins and remains highly leveraged (debt-to-equity is elevated), which limits upside unless operating profits improve. Xerox Reports Q1 Loss, Tops Revenue Estimates
• Negative Sentiment: Contrarian/options signals: Earlier spikes in put buying and very choppy, high-volume trading indicate continued volatility and the possibility of sharp reversals as shorts re-enter or momentum fades.

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.