Citigroup Cuts RXO (NYSE:RXO) Price Target to $23.00

Key Points

• Citigroup lowered RXO’s price target to $23 from $30 while maintaining a neutral rating, implying approximately 5.55% upside from the stock’s $21.79 price.
• RXO’s latest quarter exceeded expectations, with earnings of $0.06 per share versus $0.04 expected and revenue rising 25% year over year to $1.77 billion.
• Analyst sentiment remains mixed: RXO has an overall “Hold” rating and an average price target of $23.85, while margin pressure and negative profitability metrics remain concerns.

RXO (NYSE:RXO - Get Free Report) had its target price dropped by investment analysts at Citigroup from $30.00 to $23.00 in a note issued to investors on Friday,Benzinga reports. The brokerage presently has a "neutral" rating on the stock. Citigroup's target price indicates a potential upside of 5.55% from the stock's current price.

A number of other brokerages have also weighed in on RXO. Susquehanna lifted their price objective on RXO from $18.00 to $20.00 and gave the stock a "negative" rating in a research report on Tuesday, July 14th. Wells Fargo & Company raised their price target on RXO from $15.00 to $22.00 and gave the stock an "equal weight" rating in a research note on Friday, May 8th. Citizens Jmp upgraded shares of RXO from a "market perform" rating to an "outperform" rating and set a $30.00 price target on the stock in a report on Friday. William Blair set a $30.00 price objective on shares of RXO in a research report on Friday. Finally, TD Cowen decreased their price objective on shares of RXO from $19.00 to $17.50 and set a "sell" rating for the company in a report on Friday. Five equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and four have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $23.85.

RXO Trading Up 7.7%

RXO stock traded up $1.55 during trading hours on Friday, reaching $21.79. The stock had a trading volume of 1,324,433 shares, compared to its average volume of 2,301,625. The stock has a market cap of $3.59 billion, a PE ratio of -35.72 and a beta of 2.10. RXO has a 52 week low of $10.43 and a 52 week high of $29.90. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.27 and a quick ratio of 1.27. The company has a fifty day simple moving average of $26.17 and a 200-day simple moving average of $20.08.

RXO (NYSE:RXO - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported $0.06 EPS for the quarter, beating the consensus estimate 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 1.83% and a negative return on equity of 1.16%. The company's quarterly revenue was up 25.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.04 earnings per share. Analysts forecast that RXO will post 0.07 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Orbis Allan Gray Ltd boosted its holdings in shares of RXO by 6.5% during the 4th quarter. Orbis Allan Gray Ltd now owns 34,677,755 shares of the company's stock valued at $438,327,000 after acquiring an additional 2,104,597 shares during the last quarter. Franklin Resources Inc. raised its holdings in shares of RXO by 91.2% during the third quarter. Franklin Resources Inc. now owns 2,328,843 shares of the company's stock valued at $35,818,000 after purchasing an additional 1,110,530 shares during the last quarter. Wellington Management Group LLP lifted its position in RXO by 7.9% during the third quarter. Wellington Management Group LLP now owns 9,998,681 shares of the company's stock valued at $153,780,000 after purchasing an additional 735,810 shares during the period. Kennedy Capital Management LLC purchased a new stake in RXO in the fourth quarter worth approximately $9,098,000. Finally, UBS Group AG boosted its holdings in RXO by 45.9% in the third quarter. UBS Group AG now owns 2,159,907 shares of the company's stock worth $33,219,000 after purchasing an additional 679,040 shares during the last quarter. Institutional investors own 92.73% of the company's stock.

RXO News Roundup

Here are the key news stories impacting RXO this week:

• Positive Sentiment: RXO reported adjusted earnings of $0.06 per share, above the $0.04 consensus estimate and up from $0.04 a year earlier. Revenue increased 25% year over year to $1.77 billion, surpassing the $1.63 billion estimate. Market Share Gains and Improved Profitability Drive Strong Second-Quarter Results for RXO
• Positive Sentiment: Management highlighted profitable volume growth, including 2% truckload volume growth in brokerage, market-share gains and another sequential record for gross profit per load. The results suggest RXO is improving execution ahead of its previously stated expectations. RXO 2026 Q2 Results Earnings Call Presentation
• Positive Sentiment: Citizens JMP upgraded RXO from “market perform” to “outperform” and assigned a $30 price target. Truist maintained a “buy” rating while reducing its target from $30 to $28, signaling continued confidence despite more cautious valuation assumptions. Analyst Ratings via Benzinga
• Neutral Sentiment: Coverage characterized the quarter as mixed: strong revenue and earnings were offset by questions about margin performance and the pace of recovery in certain freight markets. RXO’s Mixed Q2 Results
• Negative Sentiment: RXO continues to report a negative net margin of 1.83% and negative return on equity of 1.16%. Analysis also pointed to margin pressure, while slower Class 8 truck orders could weigh on freight demand and industry conditions. What Drove RXO’s Margin Drop

About RXO

RXO Inc NYSE: RXO is a leading asset-light provider of digital freight brokerage and managed transportation solutions. The company leverages a proprietary technology platform to connect shippers with a network of third-party carriers, enabling optimized route planning, real-time shipment tracking, and dynamic pricing. RXO’s end-to-end service model spans full truckload, less-than-truckload (LTL), intermodal and cross-border freight movements, designed to improve efficiency and reduce transportation costs for its customers.

Operating primarily across North America, RXO serves a diverse base of shippers in industries ranging from retail and consumer goods to manufacturing and automotive.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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