Photocopy giant Xerox (XRX) has 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 U.S. per share. On May 22, Xerox cut the dividend further, dropping it to only $0.10 U.S. per share for the entire year.
The dividend cut comes after Xerox agreed last year to buy printing firm Lexmark International for $1.50 billion U.S.
News of the dividend cuts has sent Xerox’s stock down 41% this year to trade at $4.89 U.S. per share.
With the share price plunging, executives at Xerox have moved in to buy company stock.
Four senior executives at Xerox, including the chief executive officer (CEO), have bought $365,000 U.S. 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.
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 each bought Xerox stock on the open market.
CEO Bandrowczak paid $99,904 U.S. for 22,300 Xerox shares. Before these purchases, the last insider to buy company stock occurred in November 2022.
The stock of Xerox has fallen 74% in the last five years.
