GXO Logistics (NYSE:GXO) Raised to Buy at The Goldman Sachs Group

Key Points

• Goldman Sachs upgraded GXO Logistics from “neutral” to “buy” and set a $61 price target, implying approximately 31% upside from the prior close.
• Analyst sentiment is broadly positive: 13 analysts rate the stock Buy and two rate it Hold, producing a consensus “Moderate Buy” rating and an average price target of $63.29.
• GXO reported quarterly adjusted earnings of $0.59 per share, slightly exceeding estimates, while revenue rose 4.3% year over year to $3.44 billion; institutional investors own 90.67% of the stock.

GXO Logistics (NYSE:GXO - Get Free Report) was upgraded by research analysts at The Goldman Sachs Group from a "neutral" rating to a "buy" rating in a report released on Wednesday, Marketbeat reports. The brokerage presently has a $61.00 price target on the stock. The Goldman Sachs Group's price target suggests a potential upside of 31.23% from the stock's previous close.

A number of other research firms have also recently commented on GXO. Truist Financial cut their price target on shares of GXO Logistics from $70.00 to $55.00 and set a "buy" rating on the stock in a report on Wednesday, July 15th. Stephens initiated coverage on shares of GXO Logistics in a report on Wednesday, July 8th. They set an "overweight" rating and a $75.00 price objective for the company. Wells Fargo & Company started coverage on shares of GXO Logistics in a research report on Tuesday, July 28th. They issued an "overweight" rating and a $18.00 price objective for the company. Morgan Stanley upped their target price on shares of GXO Logistics from $75.00 to $78.00 and gave the stock an "overweight" rating in a research note on Monday, July 6th. Finally, Weiss Ratings upgraded shares of GXO Logistics from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Tuesday, July 28th. Thirteen analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $63.29.

GXO Logistics Price Performance

Shares of GXO stock opened at $46.48 on Wednesday. The stock has a 50 day moving average price of $46.57 and a 200 day moving average price of $49.89. GXO Logistics has a 52-week low of $43.61 and a 52-week high of $66.85. The company has a debt-to-equity ratio of 0.81, a quick ratio of 0.79 and a current ratio of 0.79. The firm has a market capitalization of $5.33 billion, a P/E ratio of 41.14, a P/E/G ratio of 1.46 and a beta of 1.57.

GXO Logistics (NYSE:GXO - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The company reported $0.59 EPS for the quarter, beating the consensus estimate of $0.58 by $0.01. GXO Logistics had a return on equity of 10.57% and a net margin of 0.96%. The company had revenue of $3.44 billion for the quarter, compared to the consensus estimate of $3.46 billion. During the same quarter in the prior year, the company posted $0.57 EPS. GXO Logistics's quarterly revenue was up 4.3% on a year-over-year basis. GXO Logistics has set its FY 2026 guidance at 2.950-3.150 EPS. As a group, sell-side analysts predict that GXO Logistics will post 3.05 earnings per share for the current year.

Institutional Investors Weigh In On GXO Logistics

Hedge funds have recently made changes to their positions in the company. Dimensional Fund Advisors LP increased its holdings in shares of GXO Logistics by 8.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,866,867 shares of the company's stock valued at $252,318,000 after acquiring an additional 371,391 shares during the period. Engineers Gate Manager LP raised its position in shares of GXO Logistics by 139.8% in the 4th quarter. Engineers Gate Manager LP now owns 767,595 shares of the company's stock worth $40,406,000 after acquiring an additional 447,494 shares in the last quarter. Bank of New York Mellon Corp lifted its stake in shares of GXO Logistics by 0.3% during the 1st quarter. Bank of New York Mellon Corp now owns 713,775 shares of the company's stock worth $37,009,000 after purchasing an additional 2,441 shares during the last quarter. Encompass Capital Advisors LLC lifted its stake in shares of GXO Logistics by 74.7% during the 4th quarter. Encompass Capital Advisors LLC now owns 698,974 shares of the company's stock worth $36,794,000 after purchasing an additional 298,974 shares during the last quarter. Finally, Principal Financial Group Inc. lifted its stake in shares of GXO Logistics by 4.2% during the 1st quarter. Principal Financial Group Inc. now owns 441,282 shares of the company's stock worth $22,880,000 after purchasing an additional 17,884 shares during the last quarter. 90.67% of the stock is currently owned by hedge funds and other institutional investors.

GXO Logistics Company Profile

GXO Logistics, Inc NYSE: GXO is a contract logistics company that manages supply chain operations for businesses across a range of industries, including retail, consumer goods, technology, healthcare, food and beverage, and industrial products. Its services are designed to help customers store, move and fulfill merchandise and materials efficiently.

The company provides warehousing and distribution, order fulfillment, transportation management, reverse logistics, and value-added services such as product processing, packaging and returns management.

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