XPO (NYSE:XPO) Stock: Insider David Bates Sells 2,615 Shares

Key Points

• COO David Bates sold 2,615 XPO shares for approximately $465,287 under a pre-arranged Rule 10b5-1 trading plan, reducing his direct ownership by 4.04% to 62,120 shares.
• XPO’s latest quarterly results exceeded expectations, with EPS of $1.70 versus the $1.48 consensus and revenue of $2.35 billion, up 13.2% year over year.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $225.91, although Zacks downgraded the stock to “Hold.”

XPO, Inc. (NYSE:XPO - Get Free Report) COO David Bates sold 2,615 shares of the stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $177.93, for a total value of $465,286.95. Following the sale, the chief operating officer directly owned 62,120 shares in the company, valued at $11,053,011.60. This trade represents a 4.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

XPO Stock Up 2.1%

XPO stock opened at $179.71 on Friday. XPO, Inc. has a one year low of $121.48 and a one year high of $232.05. The stock has a fifty day moving average of $191.57 and a 200 day moving average of $202.13. The company has a debt-to-equity ratio of 1.55, a quick ratio of 1.01 and a current ratio of 1.01. The stock 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.

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

Analysts Set New Price Targets

Several research analysts have recently weighed in on the stock. Stephens lifted their price target on shares of XPO from $255.00 to $270.00 and gave the stock an "overweight" rating in a research note on Friday, July 31st. Wells Fargo & Company raised their target price on XPO from $235.00 to $250.00 and gave the stock an "overweight" rating in a report on Friday, June 5th. Susquehanna boosted their price target on XPO from $212.00 to $214.00 and gave the company a "neutral" rating in a report on Tuesday, July 14th. TD Cowen upped their price target on XPO from $224.00 to $228.00 and gave the stock a "buy" rating in a research report on Friday, July 31st. Finally, Zacks Research downgraded XPO from a "strong-buy" rating to a "hold" rating in a research note on Tuesday. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $225.91.

Hedge Funds Weigh In On XPO

A number of hedge funds have recently made changes to their positions in XPO. Renaissance Technologies LLC lifted its position in shares of XPO by 73.3% during the first quarter. Renaissance Technologies LLC now owns 178,720 shares of the transportation company's stock valued at $34,770,000 after buying an additional 75,600 shares during the last quarter. National Pension Service acquired a new stake in shares of XPO during the second quarter worth $37,695,000. Border to Coast Pensions Partnership Ltd purchased a new position in XPO in the 1st quarter worth $36,048,000. K.J. Harrison & Partners Inc purchased a new position in shares of XPO in the second quarter worth about $4,927,000. Finally, MFN Partners Management LP purchased a new position in XPO during the 2nd quarter worth approximately $2,026,148,865. Institutional investors own 97.73% of the company's stock.

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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