Xerox stock hits 52-week low at $3.73 amid sharp annual decline

In a challenging year for Xerox Corp (NASDAQ:XRX), the company's stock has plummeted to a 52-week low, touching a price level of $3.73. With a market capitalization now at $474 million and revenue of $6.2 billion, this significant downturn reflects a broader trend for the print and digital document solutions provider, with the stock experiencing a precipitous 1-year decline of 74.5%. According to InvestingPro analysis, the stock appears undervalued at current levels, with technical indicators suggesting oversold conditions. Investors have been wary as the company grapples with market shifts and operational challenges, leading to a stark decrease in its market valuation. Despite these challenges, Xerox maintains a notable 12.5% dividend yield and has sustained dividend payments for 19 consecutive years. The current low represents a critical juncture for Xerox, as it seeks to stabilize and reassure stakeholders of its long-term strategy amidst a rapidly evolving industry landscape. For deeper insights into Xerox's valuation and prospects, access the comprehensive Pro Research Report available on InvestingPro, which includes 15 additional ProTips and detailed financial analysis.

In other recent news, Xerox Holdings Corporation reported its fourth-quarter 2024 earnings, which fell short of analyst expectations. The company announced an earnings per share (EPS) of $0.36, significantly below the forecasted $0.67, and revenue of $1.61 billion, missing the projected $1.69 billion. Additionally, Xerox declared quarterly dividends for both common and preferred stock, maintaining a dividend of $0.125 per share for common stock and $20.00 per share for its Series A Convertible Perpetual Preferred Stock. In terms of strategic moves, Xerox is in the process of acquiring Lexmark, a transaction expected to close in the second half of 2025, subject to regulatory and shareholder approvals. This acquisition is anticipated to enhance Xerox's market position and improve its debt to EBITDA ratio. Moody's Ratings confirmed Xerox's B2 corporate family rating and assigned a Ba2 rating to its new senior secured notes, reflecting a stable outlook. The acquisition of Lexmark and the integration of IT Savvy are part of Xerox's strategy to stabilize revenue and expand its IT solutions and digital services offerings. Despite challenges, the company continues to focus on cost savings and strategic acquisitions to drive future growth.

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