Xerox (XRX) Executives Buy Company Stock After 40% Drop in Share Price

Executives at photocopier giant Xerox (XRX) are buying company stock after the share price fell 40% in recent months.

Four senior executives at Xerox, including the company’s CEO, have bought $365,000 worth of shares of the printer and information technology services company. It is the first time in four years that insiders have purchased stock in the struggling company.

The latest insider buying comes after Xerox cut its quarterly dividend for the second time in six months as it seeks to conserve cash. Last December, Xerox slashed its annual dividend in half to $0.50 per share. On May 22, Xerox cut the dividend further, dropping it to only $0.10 per share for the year. The dividend cut comes after Xerox agreed last year to buy printing firm Lexmark International for $1.5 billion.

News of the dividend cuts has sent XRX stock down 41% this year.

Loading Up on Shares

On May 23, Xerox President and Chief Operating Officer (COO) John G. Bruno, Board Chair Scott Letier, CEO Steve Bandrowczak, and Chief Financial Officer (CFO) Mirlanda Gecaj bought Xerox stock on the open market.

Bruno paid $109,500 for 25,000 XRX shares at an average price of $4.38 each, according to a form he filed with the U.S. Securities and Exchange Commission (SEC). Letier paid $110,750 for 25,000 Xerox shares, while Bandrowczak paid $99,904 for 22,300 XRX shares, and Gecaj paid $44,100 for 10,000 shares of XRX stock. Before these purchases, the last insider buying at the company occurred in November 2022.

Is XRX Stock a Buy?

The stock of Xerox has a consensus Moderate Sell rating among two Wall Street analysts. That rating is based on one Hold and one Sell recommendations issued in the last three months. The average XRX price target of $5.50 implies 13.87% upside from current levels.

Read more analyst ratings on XRX stock