RXO (NYSE:RXO) Shares Up 7.5% - Here's Why

Key Points

• RXO shares rose 7.5% to about $22.96 in Friday trading, although volume was 93% below the average session level.
• Analyst sentiment remains mixed: the stock has an overall “Hold” rating and an average price target of $23.62, with six Buy, ten Hold, and three Sell ratings.
• RXO exceeded quarterly expectations, reporting $0.06 EPS versus $0.04 expected and $1.77 billion in revenue, up 25% year over year; institutional investors own 92.73% of its shares.

Shares of Rxo Inc (NYSE:RXO - Get Free Report) traded up 7.5% during mid-day trading on Friday. The company traded as high as $22.91 and last traded at $22.9620. 152,967 shares traded hands during trading, a decline of 93% from the average session volume of 2,155,004 shares. The stock had previously closed at $21.36.

Analyst Ratings Changes

A number of research analysts recently issued reports on the company. Wells Fargo & Company reiterated a "positive" rating on shares of RXO in a report on Thursday, September 10th. Citizens Jmp upgraded shares of RXO from a "market perform" rating to an "outperform" rating and set a $30.00 price objective on the stock in a report on Friday, August 7th. Weiss Ratings reissued a "sell (d-)" rating on shares of RXO in a research report on Tuesday, September 1st. TD Cowen reduced their target price on shares of RXO from $19.00 to $17.50 and set a "sell" rating for the company in a report on Friday, August 7th. Finally, Truist Financial lowered their price target on shares of RXO from $30.00 to $28.00 and set a "buy" rating on the stock in a research note on Friday, August 7th. Six investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $23.62.

RXO Trading Up 9.2%

The company has a market cap of $3.85 billion, a P/E ratio of -38.22 and a beta of 2.10. The business's 50-day moving average price is $21.14 and its 200 day moving average price is $21.74. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.27 and a current ratio of 1.27.

RXO (NYSE:RXO - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $0.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.04 by $0.02. The business had revenue of $1.77 billion during the quarter, compared to the consensus estimate 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 was up 25.0% on a year-over-year basis. During the same period last year, the business posted $0.04 EPS. As a group, analysts expect that Rxo Inc will post 0.14 earnings per share for the current year.

Institutional Investors Weigh In On RXO

Several hedge funds have recently added to or reduced their stakes in the business. Intrinsic Edge Capital Management LLC bought a new position in shares of RXO during the first quarter worth approximately $3,655,000. Sei Investments Co. boosted its stake in RXO by 71.7% in the 1st quarter. Sei Investments Co. now owns 133,339 shares of the company's stock valued at $1,949,000 after purchasing an additional 55,680 shares during the period. Fifth Third Bancorp grew its holdings in RXO by 21,691.7% in the 1st 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 in the last quarter. Bank of America Corp DE grew its holdings in RXO by 128.6% in the 1st quarter. Bank of America Corp DE now owns 724,060 shares of the company's stock valued at $10,586,000 after buying an additional 407,285 shares in the last quarter. Finally, Maple Rock Capital Partners Inc. bought a new position in RXO during the 2nd quarter worth $71,283,000. Institutional investors and hedge funds own 92.73% of the company's stock.

RXO Company Profile

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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