Xerox Surpasses Analyst Price Target, Investors Weigh Their Next Move
In recent trading, shares of Xerox Holdings Corp (Symbol: XRX) have crossed above the average analyst 12-month target price of $9.38, changing hands for $9.45/share. When a stock reaches the target set by analysts, they typically face two options: downgrade the stock due to valuation concerns or raise their price target. Their reactions may also hinge on the company’s current business developments, prompting considerations for a potential price increase.
Understanding the Analyst Insights
There are four different analyst targets within the Zacks coverage universe contributing to the average for Xerox Holdings Corp. However, this average serves as just a mathematical benchmark. Some analysts have lower targets; one sets a price at $8.00, while another aims as high as $11.00. The standard deviation among these targets is $1.6.
A Broader Perspective on Valuation
The reason to examine the average XRX price target is to benefit from the “wisdom of crowds.” This aggregate reflects the varying opinions of multiple analysts rather than relying on a single viewpoint. With XRX now above that average target price of $9.38/share, investors are encouraged to assess whether this marks only a stop on the way to even higher targets or if the current valuation might be too stretched, suggesting a strategy of selling some shares. Below is a table showing the current thinking of the analysts who cover Xerox Holdings Corp:
| Recent XRX Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 0 | 0 | 0 | 0 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 1 | 1 | 1 | 1 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 3 | 3 | 3 | 3 |
| Average rating: | 4.33 | 4.33 | 4.33 | 4.33 |
The average rating presented in the last row of the above table ranges from 1 to 5, with 1 being Strong Buy and 5 being Strong Sell. This article utilized data provided by Zacks Investment Research via Quandl.com.
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Also see:
• DNAY shares outstanding history
• WYND YTD Return
• Institutional Holders of HE
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
