QXO (NYSE:QXO) Stock Falls 4.7% - Here's Why

Key Points

• QXO shares fell 4.7% to about $10.36 during Monday’s trading, with volume down 66% from the average daily level.
• Despite the decline, analysts remain broadly positive: QXO has a consensus “Moderate Buy” rating and a $25.14 average price target, supported by recent Buy and Overweight initiations.
• QXO met quarterly EPS expectations at $0.08 and exceeded revenue estimates with $3.25 billion, though it reported a negative net margin of 5.17%; institutional investors own 58.68% of the stock.

QXO, Inc. (NYSE:QXO - Get Free Report)'s stock price fell 4.7% during mid-day trading on Monday. The stock traded as low as $10.45 and last traded at $10.3550. 5,503,023 shares were traded during trading, a decline of 66% from the average daily volume of 16,253,033 shares. The stock had previously closed at $10.86.

Wall Street Analyst Weigh In

A number of brokerages recently commented on QXO. Zacks Research raised shares of QXO from a "strong sell" rating to a "hold" rating in a research note on Monday, July 27th. Wall Street Zen upgraded shares of QXO from a "strong sell" rating to a "sell" rating in a research report on Saturday, July 25th. Benchmark reissued a "buy" rating on shares of QXO in a research note on Friday, August 14th. Morgan Stanley assumed coverage on QXO in a research report on Tuesday, August 4th. They set an "overweight" rating and a $35.00 price objective for the company. Finally, Melius Research started coverage on QXO in a research note on Tuesday, October 6th. They issued a "buy" rating and a $17.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $25.14.

QXO Trading Down 5.6%

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 firm has a market cap of $10.64 billion, a price-to-earnings ratio of -11.41, a price-to-earnings-growth ratio of 2.21 and a beta of 2.30. The business's 50-day moving average price is $12.68 and its two-hundred day moving average price is $15.73.

QXO (NYSE:QXO - Get Free Report) last announced its earnings results on Thursday, August 13th. The company reported $0.08 earnings per share (EPS) for the quarter, hitting 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 firm had revenue of $3.25 billion for the quarter, compared to analyst estimates of $3.18 billion. Equities analysts expect that QXO, Inc. will post 0.25 earnings per share for the current year.

Institutional Investors Weigh In On QXO

Several hedge funds have recently made changes to their positions in the business. Root Financial Partners LLC grew its stake in shares of QXO by 73,350.0% in the first quarter. Root Financial Partners LLC now owns 1,469 shares of the company's stock valued at $29,000 after buying an additional 1,467 shares in the last quarter. CoreCap Advisors LLC acquired a new position in QXO during the 3rd quarter worth approximately $41,000. Versant Capital Management Inc lifted its position in QXO by 718.7% during the 3rd quarter. Versant Capital Management Inc now owns 3,635 shares of the company's stock worth $42,000 after acquiring an additional 3,191 shares in the last quarter. NFSG Corp lifted its position in QXO by 39.6% during the 1st quarter. NFSG Corp now owns 2,198 shares of the company's stock worth $43,000 after acquiring an additional 623 shares in the last quarter. Finally, Align Financial LLC purchased a new position in QXO in the 3rd quarter worth approximately $43,000. Institutional investors and hedge funds own 58.68% of the company's stock.

About QXO

QXO, Inc is a building products distribution company serving professional contractors and other customers in the construction industry. Its product offerings include roofing materials, siding, windows, doors, insulation and related exterior building products.

The company operates through a network of distribution locations in the United States and Canada, providing materials, delivery services and product support to contractors and other building-industry customers. QXO's strategy is focused on expanding its presence in the building products distribution market through organic growth and acquisitions.

QXO was formerly known as SilverSun Technologies, Inc and adopted the QXO name as part of a strategic transformation led by investor Brad Jacobs.

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