Drilling Down Into Xerox Corporation (XRX)

Xerox Corporation (XRX) is an interesting player in the Technology space, with a focus on Information Technology Services. The stock has been active on the tape, currently trading at $29.15, down from yesterday’s close by -1.02%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Xerox Corporation (XRX) currently trades with a market capitalization of $7.50 Billion. That value represents a market adjusting for revenues that have been falling by -5.02 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $641 Million over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $0.97 on a per share basis this quarter. Perhaps, that suggests something about why 3.18% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Xerox Corporation recorded a 52-week high of $34.13. It is now trading 4.98% off that level. The stock is trading $29.71 its 50-day moving average by 0.56%. The stock carved out a 52-week low down at $22.89.

In recent action, Xerox Corporation (XRX) has made a move of -1.72% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 19.03, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 2.12% with $238.25 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of XRX.

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