XPO (NYSE:XPO) Stock Price Target Cut by Susquehanna

Key Points

• Susquehanna cut XPO’s price target from $225 to $194 and maintained a neutral rating, implying approximately 8% upside from the stock’s $179.71 opening price.
• Despite the reduction, analyst sentiment remains broadly positive: XPO has a consensus “Moderate Buy” rating and a $225 average target, supported by several recent target increases from other brokerages.
• XPO reported quarterly adjusted earnings of $1.70 per share and revenue of $2.35 billion, exceeding estimates, while insiders sold shares under pre-arranged trading plans and institutional investors own 97.73% of the stock.

XPO (NYSE:XPO - Get Free Report) had its price objective dropped by analysts at Susquehanna from $225.00 to $194.00 in a report released on Friday, Benzinga reports. The brokerage presently has a "neutral" rating on the transportation company's stock. Susquehanna's target price would indicate a potential upside of 7.95% from the company's current price.

XPO has been the topic of a number of other reports. TD Cowen upped their price objective on shares of XPO from $224.00 to $228.00 and gave the company a "buy" rating in a research note on Friday, July 31st. Stifel Nicolaus increased their price target on XPO from $237.00 to $241.00 and gave the stock a "buy" rating in a report on Tuesday, July 21st. BMO Capital Markets lifted their price objective on XPO from $240.00 to $245.00 and gave the stock an "outperform" rating in a research report on Thursday, June 4th. Stephens boosted their price objective on XPO from $255.00 to $270.00 and gave the company an "overweight" rating in a research note on Friday, July 31st. Finally, Bank of America upped their target price on XPO from $228.00 to $230.00 and gave the company a "buy" rating in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $225.00.

XPO Price Performance

Shares of NYSE:XPO opened at $179.71 on Friday. The company has a debt-to-equity ratio of 1.55, a quick ratio of 1.01 and a current ratio of 1.01. XPO has a 52 week low of $121.48 and a 52 week high of $232.05. The firm has a market cap of $21.04 billion, a PE ratio of 53.01, a price-to-earnings-growth ratio of 1.79 and a beta of 1.85. The firm's fifty day moving average is $191.57 and its 200-day moving average is $202.13.

XPO (NYSE:XPO - Get Free Report) last announced its earnings results on Thursday, July 30th. The transportation company reported $1.70 EPS for the quarter, topping the consensus estimate of $1.48 by $0.22. XPO had a return on equity of 29.64% and a net margin of 4.71%.The firm had revenue of $2.35 billion for the quarter, compared to the consensus estimate of $2.28 billion. During the same period in the previous year, the business earned $1.05 EPS. The business's quarterly revenue was up 13.2% compared to the same quarter last year. Sell-side analysts predict that XPO will post 5.42 earnings per share for the current year.

Insider Transactions at XPO

In related news, COO David J. Bates sold 2,615 shares of the company's stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $179.41, for a total transaction of $469,157.15. Following the transaction, the chief operating officer directly owned 64,735 shares of the company's stock, valued at approximately $11,614,106.35. This represents a 3.88% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Kyle Wismans sold 750 shares of the stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $175.47, for a total value of $131,602.50. Following the completion of the transaction, the chief financial officer owned 47,966 shares in the company, valued at approximately $8,416,594.02. The trade was a 1.54% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 11,730 shares of company stock valued at $2,208,974 in the last 90 days. 0.87% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On XPO

A number of institutional investors have recently modified their holdings of the company. Keating Financial Advisory Services Inc. bought a new stake in XPO during the 2nd quarter valued at $32,000. Transamerica Financial Advisors LLC bought a new position in shares of XPO in the second quarter valued at $32,000. Root Financial Partners LLC grew its holdings in shares of XPO by 21.1% during the first quarter. Root Financial Partners LLC now owns 362 shares of the transportation company's stock valued at $70,000 after buying an additional 63 shares during the last quarter. V Square Quantitative Management LLC grew its holdings in shares of XPO by 19.1% during the first quarter. V Square Quantitative Management LLC now owns 374 shares of the transportation company's stock valued at $73,000 after buying an additional 60 shares during the last quarter. Finally, Parallel Advisors LLC increased its position in shares of XPO by 13.2% during the first quarter. Parallel Advisors LLC now owns 421 shares of the transportation company's stock worth $82,000 after acquiring an additional 49 shares in the last quarter. 97.73% of the stock is owned by institutional investors and hedge funds.

XPO News Roundup

Here are the key news stories impacting XPO this week:

• Positive Sentiment: Bank of America raised its price target to $230 from $228 and maintained a “buy” rating. The new target implies substantial potential upside from the stock’s recent trading level, signaling continued confidence in XPO’s earnings and growth outlook.
• Positive Sentiment: XPO opened two new service centers in Mesa, Arizona, and Cameron, Missouri. The facilities expand capacity in fast-growing freight markets, improve the company’s North American less-than-truckload network and could support future shipment growth. XPO Opens Two New Service Centers in Fast-Growing Freight Markets
• Neutral Sentiment: Chief Financial Officer Kyle Wismans sold 750 shares, while Chief Operating Officer David Bates sold 2,615 shares. Both transactions were executed under pre-arranged Rule 10b5-1 trading plans, reducing the likelihood that the sales reflect a change in management’s view of XPO’s prospects. The executives continue to hold substantial positions.
• Negative Sentiment: Zacks Research downgraded XPO from “strong buy” to “hold.” The change may temper enthusiasm around the shares, particularly as the stock trades below its 50-day and 200-day moving averages and carries a relatively elevated earnings multiple.

About XPO

XPO, Inc is a transportation and logistics company that provides freight services to businesses in North America and Europe. Its primary business is less-than-truckload (LTL) transportation, which consolidates shipments from multiple customers onto individual trailers. The company serves manufacturers, retailers, distributors and other commercial customers.

XPO's services include regional, interregional and cross-border LTL transportation, freight pickup and delivery, shipment tracking, and related supply chain solutions.

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