RXO (NYSE:RXO) Raised to "Strong-Buy" at Zacks Research

Key Points

• Zacks Research upgraded RXO to “strong buy” from “hold,” although the broader analyst consensus remains “hold,” with a $26.08 average price target.
• RXO shares opened at $28.71, near their 12-month high of $29.90, while the company’s latest quarterly results beat expectations with $0.06 in EPS and $1.77 billion in revenue.
• Institutional investors own 92.73% of RXO, with several major funds recently increasing their positions, including Maple Rock Capital Partners, Dimensional Fund Advisors and Bank of America.

RXO (NYSE:RXO - Get Free Report) was upgraded by equities researchers at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Monday, Zacks reports.

A number of other brokerages also recently issued reports on RXO. Benchmark restated a "hold" rating on shares of RXO in a research report on Tuesday, July 28th. Wells Fargo & Company lifted their target price on RXO from $23.00 to $30.00 and gave the stock an "equal weight" rating in a report on Tuesday, October 6th. Stifel Nicolaus set a $31.00 target price on RXO in a report on Friday, August 7th. Citizens Jmp downgraded RXO from an "outperform" rating to a "market perform" rating in a research report on Thursday, October 15th. Finally, Stephens raised RXO to a "hold" rating in a research report on Wednesday, July 8th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, fifteen have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $26.08.

RXO Stock Performance

RXO stock opened at $28.71 on Monday. The company's 50-day moving average price is $22.81 and its 200-day moving average price is $23.07. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 0.30. The company has a market cap of $4.74 billion, a PE ratio of -47.07 and a beta of 2.10. RXO has a twelve month low of $10.43 and a twelve month high of $29.90.

RXO (NYSE:RXO - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.06 EPS for the quarter, beating analysts' consensus estimates of $0.04 by $0.02. The firm had revenue of $1.77 billion during the quarter, compared to the consensus estimate of $1.63 billion. RXO had a negative net margin of 1.72% and a negative return on equity of 0.98%. The firm's revenue for the quarter was up 25.0% compared to the same quarter last year. During the same quarter last year, the firm earned $0.04 EPS. On average, equities research analysts forecast that RXO will post 0.15 EPS for the current fiscal year.

Hedge Funds Weigh In On RXO

A number of large investors have recently made changes to their positions in the company. Maple Rock Capital Partners Inc. purchased a new position in RXO during the 2nd quarter valued at $71,283,000. Dimensional Fund Advisors LP grew its position in RXO by 32.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,048,903 shares of the company's stock valued at $29,949,000 after acquiring an additional 504,955 shares during the last quarter. Principal Financial Group Inc. grew its position in RXO by 2.0% in the 1st quarter. Principal Financial Group Inc. now owns 798,285 shares of the company's stock valued at $11,671,000 after acquiring an additional 16,029 shares during the last quarter. Bank of America Corp DE grew its position in RXO by 128.6% in the 1st quarter. Bank of America Corp DE now owns 724,060 shares of the company's stock valued at $10,586,000 after acquiring an additional 407,285 shares during the last quarter. Finally, Emerald Advisers LLC increased its stake in RXO by 434,029.7% in the first quarter. Emerald Advisers LLC now owns 438,471 shares of the company's stock worth $6,410,000 after purchasing an additional 438,370 shares during the period. 92.73% of the stock is owned by hedge funds and other institutional investors.

About RXO

RXO, Inc is a transportation and logistics company that connects shippers with motor carriers and other transportation providers. The company primarily operates an asset-light business model, arranging freight transportation rather than owning a large fleet of trucks.

Its services include truckload freight brokerage, managed transportation and last-mile delivery. RXO uses technology and logistics expertise to help businesses source transportation capacity, manage shipments and coordinate deliveries across their supply chains.

RXO serves customers throughout North America, including the United States, Canada and Mexico.

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