Xerox Corp (XRX) Shares Increase in Early Trading After Carl Icahn Discloses Stake

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Xerox Corp (NYSE:XRX) shares seems to be heading up this morning, after investory Carl Icahn disclosed his stake in the company. Along with his disclosure, he also called the company’s stock “undervalued” on Monday.

Icahn, who announced that he now holds a 7.13% stake in the copier and printer maker yesterday, has become the second largest shareholder of Xerox. It should be interesting to follow today’s trading of the stock.

The stock is up 1.02% or $0.11 after the news, hitting $10.86 per share. About 1.40M shares traded hands. XRX has declined 16.80% since April 22, 2015 and is downtrending. It has underperformed by 15.78% the S&P500.

Out of 6 analysts covering Xerox Corporation (NYSE:XRX), 3 rate it “Buy”, 2 “Sell”, while 1 “Hold”. This means 50% are positive. $15 is the highest target while $9 is the lowest. The $11.90 average target is 9.58% above today’s ($10.86) stock price. Xerox Corporation was the topic in 9 analyst reports since July 28, 2015 according to StockzIntelligence Inc. Zacks downgraded the stock on September 2 to “Sell” rating. TheStreet upgraded the shares of XRX in a report on August 17 to “Buy” rating.

The institutional sentiment increased to 0.81 in Q2 2015. Its up 0.08, from 0.73 in 2015Q1. The ratio improved, as 61 funds sold all Xerox Corp shares owned while 207 reduced positions. 53 funds bought stakes while 165 increased positions. They now own 889.26 million shares or 4.77% less from 933.76 million shares in 2015Q1.

Tensile Capital Management Llc holds 5.36% of its portfolio in Xerox Corp for 1.83 million shares. Valueworks Llc owns 720,933 shares or 4.35% of their US portfolio. Moreover, Cumberland Partners Ltd has 3.57% invested in the company for 2.94 million shares. The Ohio-based Eubel Brady & Suttman Asset Management Inc has invested 3.22% in the stock. Guinness Atkinson Asset Management Inc, a California-based fund reported 529,880 shares.

Xerox Corporation is engaged in offering business process and document management solutions. The company has a market cap of $10.69 billion. The Firm operates through the following divisions: Services, Document Technology and Other. It has 24.1 P/E ratio. The Company’s clients include small and midsize businesses , graphic communications companies, Governmental entities, educational institutions and Fortune 1000 corporate accounts.

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