QXO Sees Unusually Large Options Volume (NYSE:QXO)

Key Points

• QXO saw unusually heavy bearish options activity: Investors purchased 40,720 put options, about 47% above the typical volume.
• The stock remains under pressure, falling to $10.45 and trading near its one-year low of $10.39; its 50-day and 200-day moving averages are $13.13 and $16.04, respectively.
• Institutional ownership is substantial at 58.68%, with several major investors increasing or initiating positions. Analysts remain broadly positive, assigning QXO a “Moderate Buy” consensus rating and an average price target of $25.36.

QXO, Inc. (NYSE:QXO - Get Free Report) saw some unusual options trading activity on Monday. Investors purchased 40,720 put options on the company. This is an increase of approximately 47% compared to the typical volume of 27,619 put options.

Institutional Trading of QXO

Several institutional investors and hedge funds have recently modified their holdings of the business. Finepoint Capital LP increased its stake in shares of QXO by 30.7% in the second quarter. Finepoint Capital LP now owns 18,113,850 shares of the company's stock valued at $313,007,000 after buying an additional 4,255,435 shares during the period. Fred Alger Management LLC lifted its stake in shares of QXO by 75.4% in the fourth quarter. Fred Alger Management LLC now owns 15,923,937 shares of the company's stock worth $307,173,000 after acquiring an additional 6,844,574 shares during the period. Consulta Ltd boosted its holdings in QXO by 33.3% in the fourth quarter. Consulta Ltd now owns 10,000,000 shares of the company's stock valued at $192,900,000 after acquiring an additional 2,500,000 shares during the last quarter. Spyglass Capital Management LLC bought a new stake in QXO in the second quarter valued at approximately $62,961,000. Finally, Bank of New York Mellon Corp acquired a new stake in QXO during the 2nd quarter valued at approximately $44,919,000. 58.68% of the stock is currently owned by institutional investors.

QXO Price Performance

Shares of QXO stock traded down $0.36 on Monday, reaching $10.45. 10,179,756 shares of the stock were exchanged, compared to its average volume of 16,065,182. The company has a debt-to-equity ratio of 0.66, a quick ratio of 3.29 and a current ratio of 4.11. The firm has a market cap of $10.84 billion, a PE ratio of -11.62, a P/E/G ratio of 2.20 and a beta of 2.30. The firm's 50 day moving average is $13.13 and its 200-day moving average is $16.04. QXO has a one year low of $10.39 and a one year high of $27.61.

QXO (NYSE:QXO - Get Free Report) last announced its quarterly earnings data on Thursday, August 13th. The company reported $0.08 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.08. The business had revenue of $3.25 billion for the quarter, compared to analysts' expectations of $3.18 billion. QXO had a negative net margin of 5.17% and a positive return on equity of 2.41%. As a group, analysts anticipate that QXO will post 0.25 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

QXO has been the subject of several analyst reports. Citigroup dropped their price objective on shares of QXO from $28.00 to $25.00 and set a "buy" rating for the company in a research note on Monday, July 13th. Zacks Research raised shares of QXO from a "strong sell" rating to a "hold" rating in a report on Monday, July 27th. DA Davidson set a $20.00 price target on shares of QXO in a research report on Friday. Morgan Stanley assumed coverage on QXO in a research note on Tuesday, August 4th. They set an "overweight" rating and a $35.00 price objective on the stock. Finally, Melius Research began coverage on QXO in a report on Tuesday, October 6th. They issued a "buy" rating and a $17.00 price objective for the company. Two analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, QXO presently has an average rating of "Moderate Buy" and an average price target of $25.36.

QXO Company Profile

QXO, Inc is a building products distribution company focused on supplying contractors and other construction professionals. Its product portfolio includes roofing materials, siding, windows, waterproofing products and related exterior building supplies. The company serves residential and commercial construction and repair markets through branch locations, distribution centers and digital ordering channels.

QXO operates through Beacon, a major distributor of roofing and complementary building products in the United States and Canada.

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