RXO (NYSE:RXO) Shares Gap Up on Analyst Upgrade

Key Points

• RXO shares opened higher after Susquehanna upgraded the stock from negative to neutral, though its new $19 price target is below the prior close.
• Analyst sentiment remains mixed: RXO has a consensus “Hold” rating and an average price target of $23.62, based on six Buy, ten Hold and three Sell ratings.
• RXO beat quarterly earnings expectations, reporting $0.06 in adjusted EPS versus $0.04 expected, while revenue rose 25% year over year to $1.77 billion. Institutional investors own approximately 92.73% of the company.

Rxo Inc (NYSE:RXO - Get Free Report) gapped up before the market opened on Wednesday after Susquehanna upgraded the stock from a negative rating to a neutral rating. The stock had previously closed at $19.79, but opened at $20.37. Susquehanna now has a $19.00 price target on the stock. RXO shares last traded at $19.5590, with a volume of 88,235 shares.

Several other research analysts have also weighed in on RXO. Truist Financial lowered their price objective on RXO from $30.00 to $28.00 and set a "buy" rating for the company in a research report on Friday, August 7th. Barclays upped their price target on RXO from $20.00 to $28.00 and gave the company an "overweight" rating in a research note on Thursday, June 25th. Benchmark reiterated a "hold" rating on shares of RXO in a report on Tuesday, July 28th. Stifel Nicolaus set a $31.00 price target on RXO in a report on Friday, August 7th. Finally, William Blair set a $30.00 price objective on RXO in a research report on Friday, August 7th. Six analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, RXO presently has a consensus rating of "Hold" and a consensus price target of $23.62.

Hedge Funds Weigh In On RXO

Several institutional investors have recently bought and sold shares of the company. Cassaday & Co Wealth Management LLC acquired a new stake in RXO during the 1st quarter valued at $29,000. City Holding Co. raised its stake in RXO by 227.6% in the 2nd quarter. City Holding Co. now owns 1,245 shares of the company's stock valued at $34,000 after purchasing an additional 865 shares during the last quarter. Public Employees Retirement System of Ohio lifted its holdings in RXO by 18.3% in the 1st quarter. Public Employees Retirement System of Ohio now owns 4,196 shares of the company's stock valued at $61,000 after purchasing an additional 649 shares in the last quarter. Nykredit A S acquired a new stake in shares of RXO during the 2nd quarter worth about $67,000. Finally, PNC Financial Services Group Inc. lifted its stake in shares of RXO by 47.3% during the 1st quarter. PNC Financial Services Group Inc. now owns 6,287 shares of the company's stock worth $92,000 after purchasing an additional 2,019 shares during the period. 92.73% of the stock is owned by institutional investors and hedge funds.

RXO Price Performance

The company has a 50-day moving average of $22.29 and a two-hundred day moving average of $21.39. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.27 and a quick ratio of 1.27. The stock has a market capitalization of $3.27 billion, a PE ratio of -32.42 and a beta of 2.10.

RXO (NYSE:RXO - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $0.06 earnings per share for the quarter, beating analysts' consensus estimates of $0.04 by $0.02. RXO had a negative return on equity of 0.98% and a negative net margin of 1.72%.The firm had revenue of $1.77 billion for the quarter, compared to analysts' expectations of $1.63 billion. During the same quarter last year, the firm earned $0.04 earnings per share. The firm's revenue for the quarter was up 25.0% compared to the same quarter last year. Sell-side analysts predict that Rxo Inc will post 0.14 EPS for the current fiscal year.

RXO Company Profile

RXO Inc is a transportation services company that provides asset-light freight brokerage and logistics solutions. Its platform connects shippers with third-party carriers, helping businesses arrange the movement of truckload, less-than-truckload, expedited and other freight. The company also provides managed transportation services, including shipment planning, carrier sourcing, tracking and logistics coordination.

RXO primarily serves customers across North America, supporting freight movements in the United States, Canada and Mexico.

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