Xerox Stock Plunges 11.33% Amid Dividend Cut, Acquisition Concerns

On May 26, 2025, Xerox's stock price plummeted by 11.33% in pre-market trading, sparking concerns among investors about the company's recent strategic decisions and financial performance.

Xerox Holdings Co. announced a further reduction in its dividend ahead of the pending Lexmark acquisition, which has contributed to the decline in share price. This move has raised questions about the company's financial health and its ability to maintain shareholder value.

The company's financial metrics, including a negative net margin of 21.24% and a positive return on equity of 7.57%, indicate significant challenges in its operational efficiency. Additionally, the firm's quarterly revenue has decreased by 3.0% compared to the same period last year, further exacerbating investor concerns.

Institutional investors have been actively trading Xerox shares, with some increasing their holdings while others reducing their positions. This activity reflects the mixed sentiment surrounding the company's future prospects and the potential impact of the Lexmark acquisition.