Citigroup Issues Pessimistic Forecast for QXO (NYSE:QXO) Stock Price

Key Points

• Citigroup cut its price target on QXO from $31.00 to $30.00 while keeping a "buy" rating, a target that implies roughly a 59.9% upside from the stock's current price of $18.77.
• Shares traded down 4.9% to $18.77 on heavy volume; QXO recently missed EPS (reported $0.02 vs. $0.03 expected) and showed a negative net margin of 4.08% despite outsized year-over-year revenue growth.
• The analyst consensus is a "Moderate Buy" with a $32.47 average target (most analysts rate the stock Buy), and institutional ownership is high (~58.7%) with several firms recently increasing positions.

QXO (NYSE:QXO - Get Free Report) had its target price dropped by Citigroup from $31.00 to $30.00 in a research report issued on Thursday,Benzinga reports. The firm presently has a "buy" rating on the stock. Citigroup's price target indicates a potential upside of 59.87% from the stock's current price.

A number of other equities analysts have also recently issued reports on QXO. Oppenheimer boosted their price objective on QXO from $30.00 to $32.00 and gave the company an "outperform" rating in a report on Monday, April 27th. Wall Street Zen lowered shares of QXO from a "hold" rating to a "sell" rating in a research note on Saturday, February 28th. Royal Bank Of Canada cut their price target on shares of QXO from $30.00 to $28.00 and set an "outperform" rating on the stock in a report on Monday, April 6th. KeyCorp raised their price target on shares of QXO from $30.00 to $32.00 and gave the stock an "overweight" rating in a research note on Monday, April 20th. Finally, BNP Paribas Exane started coverage on shares of QXO in a research report on Monday, March 16th. They issued an "outperform" rating and a $30.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $32.47.

QXO Trading Down 4.9%

Shares of NYSE:QXO traded down $0.98 during trading on Thursday, reaching $18.77. The company's stock had a trading volume of 18,751,095 shares, compared to its average volume of 10,328,360. The stock has a market capitalization of $13.61 billion, a PE ratio of -31.81, a price-to-earnings-growth ratio of 3.09 and a beta of 2.40. QXO has a 12 month low of $13.30 and a 12 month high of $27.61. The company has a current ratio of 3.58, a quick ratio of 2.61 and a debt-to-equity ratio of 0.37. The firm's 50 day simple moving average is $21.16 and its two-hundred day simple moving average is $21.17.

QXO (NYSE:QXO - Get Free Report) last released its earnings results on Friday, February 27th. The company reported $0.02 earnings per share for the quarter, missing the consensus estimate of $0.03 by ($0.01). QXO had a negative net margin of 4.08% and a positive return on equity of 3.45%. QXO's revenue was up 14725.0% on a year-over-year basis. On average, research analysts predict that QXO will post 0.31 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Royal Bank of Canada grew its stake in QXO by 67.5% in the first quarter. Royal Bank of Canada now owns 119,688 shares of the company's stock valued at $1,620,000 after purchasing an additional 48,248 shares during the last quarter. AQR Capital Management LLC purchased a new position in shares of QXO in the 1st quarter worth approximately $615,000. Millennium Management LLC raised its stake in shares of QXO by 6.6% during the 1st quarter. Millennium Management LLC now owns 322,115 shares of the company's stock worth $4,361,000 after acquiring an additional 20,067 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in QXO by 13.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 697,889 shares of the company's stock valued at $9,449,000 after acquiring an additional 81,758 shares during the last quarter. Finally, American Century Companies Inc. acquired a new stake in QXO in the second quarter valued at approximately $837,000. 58.68% of the stock is currently owned by hedge funds and other institutional investors.

About QXO

QXO, Inc operates as a business application, technology, and consulting company in North America. The company provides solutions for accounting and business management, financial reporting, enterprise resource planning, human capital management, warehouse management systems, customer relationship management, and business intelligence. It also offers value-added services that focuses on consulting and professional, specialized programming, training, and technical support services. In addition, the company provides information technology managed services, such as cybersecurity, application hosting, disaster recovery, business continuity, cloud, and other services; and data back-up, network maintenance, and upgrade services.

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