This morning, Xerox announced that it has agreed to buy Advectis for $32 million. Advectis is a Web-based document solutions provider to the mortgage industry. XRX stated that its expertise in automating document processes is an ideal fit with privately-held Advectis' BlitzDocs paperless solution for mortgages. We're looking to help clients reduce costs and transform their business by offering a better experience for both end-users and operations, said John Kelly, president of Xerox Global Services North America. Advectis' BlitzDocs Collaboration Suite helps lenders, brokers and investors manage the process needed to underwrite, audit, collaborate, deliver and archive loan documents electronically.
The shares of XRX are down 0.76% this morning after tacking on 1.4% on Tuesday. The equity has been edging sideways along support at its 20-day moving average during the past several days. However, the security is facing resistance at its 10-week moving average, which it has not closed above since late July. The equity is also between resistance at its 10-month trendline and support at its 20-month moving average.
Options players have grown rather complacent toward the shares as they meander sideways. Schaeffer's put/call open interest ratio rests at 0.60, which is near the middle of its annual range. Meanwhile, short interest plummeted 39% in August to 7.3 million shares, resulting in a meager short-interest ratio of 0.9. This accumulation leaves the shares without potential short-covering support.