RXO (NYSE:RXO) Shares Gap Up - Time to Buy?

Key Points

• RXO shares surged 21.1%, opening at $29.00 versus the prior close of $23.38 and later trading near $28.84 on volume of roughly 3 million shares.
• Analyst sentiment is mixed: six analysts rate RXO a Buy, ten a Hold, and three a Sell, producing an overall “Hold” rating with an average price target of $23.62—below the current share price.
• RXO exceeded quarterly expectations, reporting $0.06 in earnings per share versus the $0.04 consensus and $1.77 billion in revenue, up 25% year over year. Institutional investors own 92.73% of the stock.

Rxo Inc (NYSE:RXO - Get Free Report) shares gapped up prior to trading on Monday. The stock had previously closed at $23.38, but opened at $29.00. RXO shares last traded at $28.8420, with a volume of 3,001,485 shares traded.

Wall Street Analyst Weigh In

Several research analysts recently commented on RXO shares. Wells Fargo & Company reaffirmed a "positive" rating on shares of RXO in a report on Thursday, September 10th. Truist Financial dropped their target price on RXO from $30.00 to $28.00 and set a "buy" rating on the stock in a research report on Friday, August 7th. Citizens Jmp upgraded RXO from a "market perform" rating to an "outperform" rating and set a $30.00 price target for the company in a research report on Friday, August 7th. BMO Capital Markets initiated coverage on RXO in a research note on Monday, July 13th. They set an "outperform" rating and a $35.00 price objective on the stock. Finally, Citigroup raised RXO from a "market perform" rating to an "outperform" rating in a report on Friday, August 7th. Six equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $23.62.

RXO Trading Up 21.1%

The stock has a market cap of $4.67 billion, a PE ratio of -46.30 and a beta of 2.10. The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 0.30. The firm has a fifty day simple moving average of $21.09 and a two-hundred day simple moving average of $21.82.

RXO (NYSE:RXO - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.06 earnings per share for the quarter, topping the consensus estimate of $0.04 by $0.02. The company had revenue of $1.77 billion for the quarter, compared to analysts' expectations of $1.63 billion. RXO had a negative net margin of 1.72% and a negative return on equity of 0.98%. RXO's revenue for the quarter was up 25.0% compared to the same quarter last year. During the same period in the prior year, the business earned $0.04 earnings per share. As a group, equities analysts expect that Rxo Inc will post 0.14 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in RXO. Intrinsic Edge Capital Management LLC purchased a new position in RXO in the 1st quarter worth $3,655,000. Sei Investments Co. boosted its position in RXO by 71.7% during the first quarter. Sei Investments Co. now owns 133,339 shares of the company's stock valued at $1,949,000 after buying an additional 55,680 shares during the period. Fifth Third Bancorp grew its stake in shares of RXO by 21,691.7% during the first quarter. Fifth Third Bancorp now owns 146,222 shares of the company's stock valued at $2,138,000 after buying an additional 145,551 shares during the last quarter. Bank of America Corp DE increased its stake in RXO by 128.6% in the 1st quarter. Bank of America Corp DE now owns 724,060 shares of the company's stock worth $10,586,000 after purchasing an additional 407,285 shares during the period. Finally, Maple Rock Capital Partners Inc. bought a new stake in RXO during the 2nd quarter valued at $71,283,000. 92.73% of the stock is owned by hedge funds and other institutional investors.

About RXO

RXO, Inc is a transportation services company that provides asset-light freight brokerage and logistics solutions. The company connects shippers with independent carriers and helps coordinate the movement of truckload, less-than-truckload and other freight across North America.

RXO's services include digital freight brokerage, managed transportation and last-mile logistics. Its brokerage business uses technology and carrier relationships to match customer shipments with available transportation capacity, while its managed transportation offerings help companies plan, coordinate and optimize freight operations.

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