QXO (NYSE:QXO) Raised to "Strong-Buy" at Wells Fargo & Company

Key Points

• Wells Fargo upgraded QXO to “strong buy,” while the broader analyst consensus remains “moderate buy” with a $29.71 price target.
• QXO shares fell 6.0% to open at $13.39, near their 52-week low of $13.20; the stock has declined below both its 50-day and 200-day moving averages.
• The company missed quarterly EPS estimates, reporting a loss of $0.12 per share versus the expected loss of $0.09, despite revenue of $1.73 billion and substantial year-over-year growth.

QXO (NYSE:QXO - Get Free Report) was upgraded by equities researchers at Wells Fargo & Company to a "strong-buy" rating in a research note issued to investors on Tuesday,Zacks.com reports.

Several other brokerages also recently issued reports on QXO. Zacks Research upgraded QXO from a "strong sell" rating to a "hold" rating in a research report on Monday. Stephens cut their target price on QXO from $29.00 to $26.00 and set an "overweight" rating on the stock in a research note on Thursday, May 14th. Citigroup cut their target price on QXO from $28.00 to $25.00 and set a "buy" rating on the stock in a research note on Monday, July 13th. Weiss Ratings reiterated a "sell (d)" rating on shares of QXO in a research report on Friday, May 29th. Finally, Oppenheimer increased their price target on QXO from $30.00 to $32.00 and gave the stock an "outperform" rating in a research note on Monday, April 27th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $29.71.

QXO Trading Down 6.0%

Shares of NYSE:QXO opened at $13.39 on Tuesday. The company has a market cap of $9.71 billion, a PE ratio of -14.72, a P/E/G ratio of 2.54 and a beta of 2.23. The company's 50-day moving average price is $15.93 and its 200 day moving average price is $19.78. QXO has a fifty-two week low of $13.20 and a fifty-two week high of $27.61. The company has a quick ratio of 2.47, a current ratio of 3.33 and a debt-to-equity ratio of 0.35.

QXO (NYSE:QXO - Get Free Report) last posted its earnings results on Tuesday, May 12th. The company reported ($0.12) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.03). QXO had a negative net margin of 6.02% and a positive return on equity of 1.91%. The firm had revenue of $1.73 billion for the quarter, compared to analyst estimates of $1.73 billion. QXO's revenue for the quarter was up 12716.3% on a year-over-year basis. Sell-side analysts anticipate that QXO will post 0.28 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Royal Bank of Canada raised its holdings in QXO by 67.5% during the first quarter. Royal Bank of Canada now owns 119,688 shares of the company's stock worth $1,620,000 after purchasing an additional 48,248 shares in the last quarter. AQR Capital Management LLC bought a new position in QXO during the 1st quarter valued at $615,000. Millennium Management LLC boosted its stake in QXO by 6.6% during the 1st quarter. Millennium Management LLC now owns 322,115 shares of the company's stock valued at $4,361,000 after purchasing an additional 20,067 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of QXO by 13.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 697,889 shares of the company's stock valued at $9,449,000 after purchasing an additional 81,758 shares during the period. Finally, American Century Companies Inc. acquired a new position in shares of QXO during the 2nd quarter valued at $837,000. 58.68% of the stock is currently owned by institutional investors.

About QXO

QXO, Inc operates as a business application, technology, and consulting company in North America. The company provides solutions for accounting and business management, financial reporting, enterprise resource planning, human capital management, warehouse management systems, customer relationship management, and business intelligence. It also offers value-added services that focuses on consulting and professional, specialized programming, training, and technical support services. In addition, the company provides information technology managed services, such as cybersecurity, application hosting, disaster recovery, business continuity, cloud, and other services; and data back-up, network maintenance, and upgrade services.

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