QXO (NYSE:QXO) Sets New 52-Week Low After Analyst Downgrade

Key Points

• QXO shares hit a new 52-week low of $10.77 after RBC cut its price target from $27 to $18, though it maintained an Outperform rating. The stock closed at $11.325 amid heavy trading volume.
• Analyst views remain broadly positive, with a “Moderate Buy” consensus and an average price target of $26.57, despite several recent target reductions and mixed ratings.
• Investors are monitoring QXO’s large Kodiak and TopBuild acquisitions, focusing on integration, potential synergies and balance-sheet risks amid softer residential demand and possible margin pressure.

QXO, Inc. (NYSE:QXO - Get Free Report) shares hit a new 52-week low during trading on Thursday after Royal Bank Of Canada lowered their price target on the stock from $27.00 to $18.00. Royal Bank Of Canada currently has an outperform rating on the stock. QXO traded as low as $10.77 and last traded at $11.3250, with a volume of 46459377 shares trading hands. The stock had previously closed at $12.11.

Other equities analysts have also issued research reports about the company. Wall Street Zen upgraded QXO from a "strong sell" rating to a "sell" rating in a research note on Saturday, July 25th. KeyCorp reduced their price objective on QXO from $32.00 to $28.00 and set an "overweight" rating on the stock in a research note on Wednesday, July 1st. Weiss Ratings reiterated a "sell (d)" rating on shares of QXO in a research report on Wednesday, August 26th. Benchmark reissued a "buy" rating on shares of QXO in a report on Friday, August 14th. Finally, Zacks Research upgraded shares of QXO from a "strong sell" rating to a "hold" rating in a research note on Monday, July 27th. Two analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $26.57.

QXO News Roundup

Here are the key news stories impacting QXO this week:

• Positive Sentiment: RBC maintained an Outperform rating despite lowering its price target to $18 from $27, while Melius Research initiated coverage with a Buy rating and a $17 target. These targets imply substantial potential upside if QXO successfully executes its strategy. RBC Adjusts Price Target on QXO QXO Now Covered by Melius Research
• Neutral Sentiment: QXO’s large acquisitions, including Kodiak and TopBuild, have increased its scale and support management’s long-term goal of reaching $50 billion in annual revenue. However, investors are closely monitoring integration progress, synergy realization, and the balance-sheet impact of the transactions. QXO Completes Acquisition of TopBuild
• Negative Sentiment: The primary pressure came from RBC’s target cut and a more cautious outlook for building-products companies heading into 2027. Analysts cited soft residential demand, housing and construction-cycle exposure, and potential margin pressure. Investors also remain concerned that integrating recent acquisitions could be difficult, particularly while market conditions are weak. Stock Market Today, Oct. 7: QXO Falls on RBC Price-Target Cut QXO Falls as Sector Caution and Integration Concerns Weigh on Shares

Institutional Investors Weigh In On QXO

Several hedge funds have recently modified their holdings of QXO. Moody National Bank Trust Division grew its position in QXO by 63.4% during the 3rd quarter. Moody National Bank Trust Division now owns 255,450 shares of the company's stock worth $2,986,000 after acquiring an additional 99,100 shares during the last quarter. Neville Rodie & Shaw Inc. bought a new position in QXO in the third quarter valued at about $5,498,000. CX Institutional acquired a new stake in shares of QXO during the third quarter valued at about $215,000. Versant Capital Management Inc boosted its stake in shares of QXO by 718.7% during the third quarter. Versant Capital Management Inc now owns 3,635 shares of the company's stock valued at $42,000 after purchasing an additional 3,191 shares in the last quarter. Finally, Doliver Advisors LP grew its holdings in shares of QXO by 15.8% during the third quarter. Doliver Advisors LP now owns 58,364 shares of the company's stock worth $682,000 after purchasing an additional 7,961 shares during the last quarter. Institutional investors and hedge funds own 58.68% of the company's stock.

QXO Stock Performance

The company has a fifty day moving average price of $13.23 and a two-hundred day moving average price of $16.16. The company has a debt-to-equity ratio of 0.66, a current ratio of 4.11 and a quick ratio of 3.29. The company has a market capitalization of $11.75 billion, a P/E ratio of -12.58, a PEG ratio of 2.20 and a beta of 2.30.

QXO (NYSE:QXO - Get Free Report) last issued 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. QXO had a negative net margin of 5.17% and a positive return on equity of 2.41%. The business had revenue of $3.25 billion during the quarter, compared to analyst estimates of $3.18 billion. Equities analysts forecast that QXO, Inc. will post 0.28 earnings per share for the current fiscal year.

About QXO

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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