Vanguard Group Inc. Trims Stock Holdings in XPO, Inc. $XPO

Key Points

• Vanguard trimmed its stake in XPO by 1.5% in Q4, selling 162,872 shares and now holds 10,525,258 shares (8.97%) valued at about $1.43 billion, while institutional owners collectively hold roughly 97.7% of the stock.
• XPO beat Q1 expectations, reporting $1.01 EPS vs. $0.89 consensus and $2.10B revenue vs. $2.04B, with management citing margin strength, pricing momentum and AI-driven productivity gains as drivers of improved performance.
• Outlook caveat: XPO guided to a higher adjusted effective tax rate of 23%–24% for 2026, which could pressure reported EPS, even as the stock trades at a high valuation (P/E ~82.9) and carries a consensus "Moderate Buy" rating with a ~$198.5 price target.

Vanguard Group Inc. decreased its stake in shares of XPO, Inc. (NYSE:XPO - Free Report) by 1.5% during the fourth quarter, according to its most recent filing with the SEC. The institutional investor owned 10,525,258 shares of the transportation company's stock after selling 162,872 shares during the period. Vanguard Group Inc. owned 8.97% of XPO worth $1,430,488,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently modified their holdings of XPO. Allspring Global Investments Holdings LLC grew its holdings in shares of XPO by 86.5% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 86,726 shares of the transportation company's stock worth $11,008,000 after purchasing an additional 40,235 shares in the last quarter. Cooke & Bieler LP increased its position in shares of XPO by 9.0% during the third quarter. Cooke & Bieler LP now owns 933,745 shares of the transportation company's stock valued at $120,705,000 after purchasing an additional 76,847 shares during the period. Gateway Investment Advisers LLC raised its stake in shares of XPO by 67.2% in the third quarter. Gateway Investment Advisers LLC now owns 18,431 shares of the transportation company's stock valued at $2,383,000 after purchasing an additional 7,406 shares in the last quarter. Primecap Management Co. CA lifted its position in XPO by 6.3% in the third quarter. Primecap Management Co. CA now owns 587,534 shares of the transportation company's stock worth $75,951,000 after purchasing an additional 35,050 shares during the period. Finally, Rakuten Investment Management Inc. bought a new position in XPO in the third quarter worth $5,808,000. Hedge funds and other institutional investors own 97.73% of the company's stock.

Key Stories Impacting XPO

Here are the key news stories impacting XPO this week:

• Positive Sentiment: XPO beat expectations: Q1 adjusted EPS of $1.01 vs. $0.89 consensus and revenue of $2.10B vs. $2.04B, with year-over-year revenue growth and improved margins — a primary driver of the upside. XPO Reports First-Quarter 2026 Results
• Positive Sentiment: Earnings call highlighted margin strength and upbeat commentary from management on pricing and cost control, reinforcing confidence in profitability trends. Earnings Call Highlights Margin Strength
• Positive Sentiment: Management points to AI-driven productivity gains, pricing momentum and targeted capacity investments as drivers of future operating leverage and improved LTL performance. Those operational levers support upside to margins and returns. XPO Q1 Deep Dive
• Neutral Sentiment: CEO noted that higher oil prices have not meaningfully weakened demand — a supportive operational datapoint, though its impact on margins depends on fuel-hedging and pass-through. CEO: Higher Oil Prices Not Impacting Demand
• Negative Sentiment: XPO guided to a higher adjusted effective tax rate (23%–24%) for 2026 — this raises the company’s tax burden and will weigh on reported EPS compared with a lower prior rate. Tax-Rate Forecast and LTL Target

XPO Trading Up 1.3%

Shares of XPO stock opened at $219.58 on Friday. XPO, Inc. has a 12-month low of $103.71 and a 12-month high of $231.46. The stock has a market capitalization of $25.78 billion, a P/E ratio of 82.86, a price-to-earnings-growth ratio of 2.84 and a beta of 1.94. The company has a 50-day simple moving average of $204.05 and a 200 day simple moving average of $167.28. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 1.75.

XPO (NYSE:XPO - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The transportation company reported $1.01 earnings per share for the quarter, topping the consensus estimate of $0.89 by $0.12. The firm had revenue of $2.10 billion for the quarter, compared to analysts' expectations of $2.04 billion. XPO had a net margin of 3.87% and a return on equity of 25.07%. The company's quarterly revenue was up 7.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.73 earnings per share. Research analysts expect that XPO, Inc. will post 4.49 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on XPO shares. Oppenheimer boosted their price target on shares of XPO from $198.00 to $228.00 and gave the company an "outperform" rating in a report on Tuesday, March 3rd. Morgan Stanley reiterated an "underweight" rating and set a $95.00 target price on shares of XPO in a research report on Thursday, February 5th. Evercore set a $200.00 target price on shares of XPO in a research note on Friday, February 6th. Wall Street Zen raised shares of XPO from a "hold" rating to a "buy" rating in a research report on Saturday, February 7th. Finally, Benchmark restated a "buy" rating on shares of XPO in a research note on Tuesday, March 3rd. One analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, XPO currently has an average rating of "Moderate Buy" and a consensus price target of $198.52.

XPO Company Profile

XPO Logistics, Inc is a global provider of transportation and logistics services, offering a broad portfolio of solutions designed to optimize supply chains for businesses of all sizes. The company's operations span freight brokerage, less-than-truckload (LTL) shipping, full truckload transportation, last-mile delivery, contract logistics and global forwarding. XPO aims to leverage advanced technology and operational expertise to drive efficiency, visibility and reliability across end-to-end supply-chain networks.

In its freight brokerage segment, XPO connects shippers to a network of carriers through digital platforms that facilitate rate comparisons, booking, tracking and settlement.

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