The move isn’t a big deal for the stock. But it does signal the company is trying to change how investors see it. Xerox (ticker: XRX) stock was down 0.6% in early trading Thursday, while the
Dow Jones Industrial Average
were both 0.2% higher.
The lack of reaction isn’t surprising. Investors don’t typically think about what exchange manages a company’s listing. There are fees associated with listings, as well as requirements such as maintaining up-to-date financial reports, but large companies don’t typically struggle with any of that.
Xerox wasn’t immediately available to comment on any financial impact of the switch.
“Xerox’s focus on services, software, financing and innovation indicates the direction we’re taking our business for the future,” said CEO John Visentin in the company’s news release.
The company pioneered work in personal computers in the 1970s, though it never capitalized on its early lead. Why it didn’t is now debated in business schools, but the financial consequences are clear.
Shares are down about 87% from their all-time high. The company’s market capitalization is about $3.8 billion. That value amounts to a move of about 0.15% in
(AAPL) stock. Apple’s market capitalization is almost $2.6 trillion.
The Xerox switch is also a reminder that exchanges have to compete for business. “As a longstanding technology leader, Xerox is continuing to innovate and serve as a champion for its people, customers and shareholders,” said
(NDAQ) CEO Adena Friedman in the news release. “Xerox’s listing on Nasdaq will allow them to continue creating value for all stakeholders.”
Nasdaq stock isn’t moving either. Nor are shares in
(ICE), which owns the NYSE.
Xerox stock is down about 9% year to date. No analysts rate the stock at Buy. The average Buy-rating ratio for small-capitalization stocks is about 60%. The average analyst price target for Xerox is about $21, close to where the stock has traded recently.