RXO (NYSE:RXO) Hits New 52-Week High - What's Next?

Key Points

• 52-week high: RXO reached a new 52-week high of $20.38 on Friday and last traded around $20.00, well above its 50-day ($15.65) and 200-day ($14.98) moving averages.
• Analyst view: Wall Street's consensus is a "Hold" with an average price target of $16.00—below the current price—and ratings are mixed (3 Buy, 10 Hold, 3 Sell).
• Weak recent fundamentals: The company missed quarterly EPS and revenue estimates (EPS -$0.07 vs -$0.04; revenue $1.47B vs $1.50B), reported a negative net margin and an 11.9% year-over-year revenue decline, despite ~92.7% institutional ownership.

Rxo Inc (NYSE:RXO - Get Free Report) shares hit a new 52-week high on Friday . The stock traded as high as $20.38 and last traded at $20.00, with a volume of 73816 shares trading hands. The stock had previously closed at $19.97.

Wall Street Analyst Weigh In

RXO has been the topic of several analyst reports. Barclays raised their price objective on RXO from $15.00 to $17.00 and gave the stock an "overweight" rating in a report on Wednesday, March 4th. Stifel Nicolaus set a $15.00 target price on RXO in a research report on Thursday, February 5th. Susquehanna increased their price objective on shares of RXO from $12.00 to $14.00 and gave the stock a "negative" rating in a report on Wednesday, April 22nd. Stephens set a $15.00 target price on shares of RXO in a research report on Monday, February 9th. Finally, Bank of America lowered their target price on shares of RXO from $17.00 to $15.00 and set a "neutral" rating for the company in a report on Wednesday, March 25th. Three equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat, RXO currently has an average rating of "Hold" and a consensus price target of $16.00.

RXO Stock Performance

The stock has a 50-day simple moving average of $15.65 and a 200-day simple moving average of $14.98. The stock has a market cap of $3.28 billion, a PE ratio of -34.32, a P/E/G ratio of 34.12 and a beta of 1.65. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.27 and a quick ratio of 1.27.

RXO (NYSE:RXO - Get Free Report) last released its quarterly earnings data on Friday, February 6th. The company reported ($0.07) earnings per share for the quarter, missing the consensus estimate of ($0.04) by ($0.03). RXO had a negative net margin of 1.74% and a negative return on equity of 0.44%. The firm had revenue of $1.47 billion during the quarter, compared to analyst estimates of $1.50 billion. During the same period in the prior year, the firm earned $0.06 earnings per share. The business's revenue for the quarter was down 11.9% on a year-over-year basis. Equities analysts predict that Rxo Inc will post 0.02 earnings per share for the current fiscal year.

Institutional Trading of RXO

A number of hedge funds have recently made changes to their positions in the stock. Finepoint Capital LP acquired a new stake in shares of RXO during the third quarter worth $111,764,000. Orbis Allan Gray Ltd boosted its holdings in shares of RXO by 6.5% in the 4th quarter. Orbis Allan Gray Ltd now owns 34,677,755 shares of the company's stock valued at $438,327,000 after buying an additional 2,104,597 shares during the period. Franklin Resources Inc. grew its position in shares of RXO by 91.2% during the 3rd quarter. Franklin Resources Inc. now owns 2,328,843 shares of the company's stock valued at $35,818,000 after buying an additional 1,110,530 shares during the last quarter. Vaughan Nelson Investment Management L.P. bought a new stake in shares of RXO during the 4th quarter valued at about $11,224,000. Finally, Wellington Management Group LLP raised its stake in RXO by 7.9% during the third quarter. Wellington Management Group LLP now owns 9,998,681 shares of the company's stock worth $153,780,000 after acquiring an additional 735,810 shares during the period. Institutional investors and hedge funds own 92.73% of the company's stock.

About RXO

RXO Inc NYSE: RXO is a leading asset-light provider of digital freight brokerage and managed transportation solutions. The company leverages a proprietary technology platform to connect shippers with a network of third-party carriers, enabling optimized route planning, real-time shipment tracking, and dynamic pricing. RXO’s end-to-end service model spans full truckload, less-than-truckload (LTL), intermodal and cross-border freight movements, designed to improve efficiency and reduce transportation costs for its customers.

Operating primarily across North America, RXO serves a diverse base of shippers in industries ranging from retail and consumer goods to manufacturing and automotive.

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