CEO’s death may act as a catalyst

Article Excerpt

XEROX HOLDINGS CORP. $14 is a hold. The company (Nasdaq symbol XRX; Manufacturing & Industry sector; Shares outstanding: 154.9 million; Market cap: $2.2 billion; Dividend yield: 7.1%; Takeover Target Rating: Medium; www.xerox.com) is a leading manufacturer of photocopiers, printers, scanners and related equipment. Company CEO John Visentin died suddenly in June. That could prompt activist investors Carl Icahn and Darwin Deason to push Xerox to improve shareholder value by selling or spinning off the company’s financing division, or seeking a buyer for the entire company. Xerox’s shares have dropped roughly 40% since the start of 2022. That’s partly because demand for printers and copiers remains weak as many office workers continue to work remotely. Supply chain disruptions and rising raw material costs are also hurting its profit margins. That could force the company to cut its dividend—the annual rate of $1.00 a share currently yields a high 7.1%. Xerox is a hold. hold. …

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