GXO Logistics (NYSE:GXO) Shares Gap Down - Time to Sell?

Key Points

• GXO stock gapped down ~14.3%, opening at $52.26 after a $56.22 close and trading as low as $50.37 on Monday (volume ~221,097 shares).
• Wall Street remains largely positive with a consensus "Moderate Buy" rating (10 Buys, 2 Holds, 1 Sell) and a consensus price target of $69.17, though Goldman Sachs recently downgraded to Neutral.
• Latest quarter showed a modest beat (EPS $0.87 vs. $0.83 and revenue $3.51B vs. $3.48B), but profitability is thin (net margin 0.24%) and valuation high (P/E 160.4), suggesting elevated expectations.

Shares of GXO Logistics, Inc. (NYSE:GXO - Get Free Report) gapped down before the market opened on Monday . The stock had previously closed at $56.22, but opened at $52.26. GXO Logistics shares last traded at $50.3690, with a volume of 221,097 shares traded.

Wall Street Analysts Forecast Growth

GXO has been the subject of several research analyst reports. Stifel Nicolaus set a $70.00 target price on GXO Logistics in a research note on Thursday, February 12th. Truist Financial increased their price objective on GXO Logistics from $65.00 to $70.00 and gave the company a "buy" rating in a research note on Thursday, February 12th. Wells Fargo & Company increased their price objective on GXO Logistics from $65.00 to $70.00 and gave the company an "overweight" rating in a research note on Thursday, February 12th. The Goldman Sachs Group downgraded GXO Logistics from a "buy" rating to a "neutral" rating and set a $68.00 price objective for the company. in a research note on Wednesday, March 4th. Finally, Citigroup increased their price objective on GXO Logistics from $66.00 to $68.00 and gave the company a "buy" rating in a research note on Wednesday, February 11th. Ten analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $69.17.

GXO Logistics Stock Down 14.3%

The business has a 50-day moving average of $56.05 and a 200-day moving average of $55.17. The stock has a market capitalization of $5.54 billion, a price-to-earnings ratio of 160.40, a P/E/G ratio of 1.90 and a beta of 1.62. The company has a debt-to-equity ratio of 0.87, a quick ratio of 0.85 and a current ratio of 0.85.

GXO Logistics (NYSE:GXO - Get Free Report) last announced its earnings results on Tuesday, February 10th. The company reported $0.87 EPS for the quarter, beating analysts' consensus estimates of $0.83 by $0.04. GXO Logistics had a return on equity of 9.83% and a net margin of 0.24%.The company had revenue of $3.51 billion during the quarter, compared to analysts' expectations of $3.48 billion. During the same period last year, the business posted $1.00 EPS. GXO Logistics's revenue for the quarter was up 7.9% on a year-over-year basis. On average, sell-side analysts expect that GXO Logistics, Inc. will post 3 EPS for the current year.

Hedge Funds Weigh In On GXO Logistics

Hedge funds and other institutional investors have recently bought and sold shares of the company. Allworth Financial LP boosted its stake in shares of GXO Logistics by 175.0% in the 3rd quarter. Allworth Financial LP now owns 517 shares of the company's stock valued at $27,000 after buying an additional 329 shares during the period. Accredited Wealth Management LLC boosted its stake in shares of GXO Logistics by 1,100.0% in the 3rd quarter. Accredited Wealth Management LLC now owns 600 shares of the company's stock valued at $32,000 after buying an additional 550 shares during the period. Chapman Financial Group LLC purchased a new position in shares of GXO Logistics in the 2nd quarter valued at about $34,000. Farther Finance Advisors LLC boosted its stake in shares of GXO Logistics by 177.9% in the 3rd quarter. Farther Finance Advisors LLC now owns 767 shares of the company's stock valued at $41,000 after buying an additional 491 shares during the period. Finally, Quent Capital LLC purchased a new position in shares of GXO Logistics in the 3rd quarter valued at about $50,000. 90.67% of the stock is currently owned by hedge funds and other institutional investors.

GXO Logistics Company Profile

GXO Logistics NYSE: GXO is a global contract logistics provider specializing in warehousing, distribution, and value-added supply chain services. Established in August 2021 as a spin-off from XPO Logistics, the company has built its reputation on integrating advanced technology and automation into traditional logistics operations. GXO’s core offerings include e-commerce fulfillment, inventory management, returns processing, and reverse logistics, supported by a network of fulfillment centers and distribution hubs designed to optimize order accuracy and delivery speed.

The company serves customers across a diverse array of industries, including retail, technology, consumer goods, automotive, industrial, and healthcare.

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