QXO (NYSE:QXO) Shares Down 7.9% After Analyst Downgrade

Key Points

• QXO shares fell 7.9% to about $11.15 after RBC cut its price target from $27 to $18, though it maintained an “outperform” rating. Trading volume was roughly 4.43 million shares, well below the average of 15.73 million.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $26.57, despite recent target reductions from RBC and Citigroup.
• Institutional investors own 58.68% of QXO, with several major funds increasing their stakes. The company recently met earnings expectations at $0.08 per share and reported quarterly revenue of $3.25 billion, above consensus.

QXO, Inc. (NYSE:QXO - Get Free Report)'s share price fell 7.9% during trading on Wednesday 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 $11.12 and last traded at $11.1540. 4,426,866 shares traded hands during mid-day trading, a decline of 72% from the average session volume of 15,731,277 shares. The stock had previously closed at $12.11.

Several other equities analysts have also issued reports on the stock. Wall Street Zen upgraded shares of QXO from a "strong sell" rating to a "sell" rating in a report on Saturday, July 25th. Morgan Stanley assumed coverage on QXO in a research note on Tuesday, August 4th. They issued an "overweight" rating and a $35.00 price target on the stock. Benchmark restated a "buy" rating on shares of QXO in a report on Friday, August 14th. Zacks Research raised shares of QXO from a "strong sell" rating to a "hold" rating in a research report on Monday, July 27th. Finally, Citigroup lowered 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. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, QXO has an average rating of "Moderate Buy" and an average target price of $26.57.

Institutional Investors Weigh In On QXO

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Finepoint Capital LP boosted its stake in 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 acquiring an additional 4,255,435 shares during the last quarter. Fred Alger Management LLC increased its stake in shares of QXO by 75.4% during the 4th quarter. Fred Alger Management LLC now owns 15,923,937 shares of the company's stock worth $307,173,000 after purchasing an additional 6,844,574 shares during the last quarter. Consulta Ltd increased its stake in shares of QXO by 33.3% during the 4th quarter. Consulta Ltd now owns 10,000,000 shares of the company's stock worth $192,900,000 after purchasing an additional 2,500,000 shares during the last quarter. Spyglass Capital Management LLC purchased a new stake in QXO in the second quarter worth $62,961,000. Finally, CI Investments Inc. lifted its position in shares of QXO by 4.1% during the 1st quarter. CI Investments Inc. now owns 2,598,840 shares of the company's stock valued at $50,469,000 after buying an additional 102,838 shares during the last quarter. Hedge funds and other institutional investors own 58.68% of the company's stock.

QXO Price Performance

The company has a current ratio of 4.11, a quick ratio of 3.29 and a debt-to-equity ratio of 0.66. The stock has a market cap of $11.48 billion, a PE ratio of -12.29, a PEG ratio of 2.16 and a beta of 2.30. The business has a 50-day moving average price of $13.27 and a 200 day moving average price of $16.22.

QXO (NYSE:QXO - Get Free Report) last posted its earnings results on Thursday, August 13th. The company reported $0.08 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.08. The firm had revenue of $3.25 billion for the quarter, compared to the consensus estimate of $3.18 billion. QXO had a positive return on equity of 2.41% and a negative net margin of 5.17%. As a group, research analysts forecast that QXO, Inc. will post 0.28 earnings per share for the current fiscal year.

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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