Xerox (NASDAQ:XRX) Holdings Corporation (NASDAQ: XRX) has declared dividends for both its common and preferred stock, as announced by the company's board of directors.
Shareholders of Xerox Holdings Corporation Common Stock will receive a quarterly dividend of $0.25 per share, payable on October 31, 2024, with a record date of September 30, 2024.
In a parallel move, the board has also declared a quarterly dividend for the Xerox Holdings Series A Convertible Perpetual Preferred Stock, amounting to $20.00 per share. The dividend is due on October 1, 2024, for shareholders on record as of September 15, 2024.
Xerox, a company with over a century of history, has played a significant role in shaping the modern workplace. It has evolved from its origins in office and production print technology to embrace software and services, aiming to support the hybrid work environments of today and the future.
Xerox reported a 12.4% decline in revenue for the first quarter of 2024, totaling $1.5 billion, a result of significant structural changes, including a 15% reduction in workforce, leading to a 26% year-over-year decline in equipment sales.
Despite these challenges, Xerox remains committed to its reinvention strategy, aiming to improve its adjusted operating income by $300 million above 2023 levels within three years. In a strategic financial move, Xerox expanded its credit line from $300 million to $425 million, in partnership with Citibank and other lenders, aiming to bolster its financial flexibility.
JPMorgan has adjusted its outlook on Xerox, reducing the price target to $16 from the previous $17, and maintaining an Underweight rating on the stock, reflecting concerns over Xerox's ability to achieve long-term revenue and earnings growth. Similarly, Citi initiated coverage on Xerox with a Sell rating, setting a price target of $11.00, pointing to the ongoing major restructuring efforts at Xerox as a key challenge.
InvestingPro Insights
Xerox Holdings Corporation (NASDAQ: XRX) has recently reaffirmed its commitment to shareholders by announcing dividends for its common and preferred stock. This move underscores the company's historical practice of rewarding shareholders, which is further evidenced by Xerox's track record of maintaining dividend payments for 18 consecutive years. According to InvestingPro Tips, Xerox is also identified as a prominent player in the Technology Hardware, Storage & Peripherals industry, with a notable dividend yield of 9.29%, as of the last dividend ex-date in June 2024.
From a valuation standpoint, Xerox is trading at a low Price / Book multiple of 0.55, as of the last twelve months leading up to Q2 2024. This could suggest that the company's stock is undervalued relative to its book value, potentially offering an attractive entry point for value investors. In addition, Xerox's net income is expected to grow this year, despite a challenging environment reflected by a 9.27% decline in revenue over the same period. While analysts have revised their earnings downwards for the upcoming period, the anticipated return to profitability could provide a positive outlook for the company's financial performance.
Investors should note that Xerox's stock price has experienced significant volatility, with a price total return of -39.88% over the past six months. However, this also places the stock trading near its 52-week low, which might interest investors looking for potential rebound opportunities. For those interested in a deeper analysis, InvestingPro offers additional insights and metrics on Xerox, including 11 more InvestingPro Tips and real-time data, which can be found on the dedicated Xerox page at InvestingPro.
For current and prospective shareholders, these dividends and the company's strategic focus on digital solutions and financial services for the hybrid work era highlight Xerox's efforts to balance returning value to investors while navigating the evolving landscape of the industry.
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