RXO (NYSE:RXO) Rating Increased to Hold at Zacks Research

Key Points

• Zacks Research upgraded RXO from a "strong sell" to a Hold; the stock's consensus rating is Hold with a $16.07 consensus price target (4 Buy, 10 Hold, 3 Sell).
• RXO's latest quarter missed estimates—EPS of ($0.07) vs. ($0.04) expected and revenue $1.47B vs. $1.50B—revenue fell 11.9% year-over-year and the company reported a negative net margin.
• Institutional ownership is very high (about 92.73%); Orbis Allan Gray holds roughly 34.7M shares and other large funds like Vanguard, Wellington and State Street have sizable stakes.

RXO (NYSE:RXO - Get Free Report) was upgraded by equities research analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research note issued to investors on Monday,Zacks.com reports.

Other research analysts also recently issued reports about the company. Truist Financial boosted their price objective on RXO from $18.00 to $20.00 and gave the company a "buy" rating in a research note on Monday, February 9th. Stephens set a $15.00 price objective on RXO in a research note on Monday, February 9th. Stifel Nicolaus set a $15.00 price objective on RXO in a research note on Thursday, February 5th. Barclays boosted their price objective on RXO from $15.00 to $17.00 and gave the company an "overweight" rating in a research note on Wednesday, March 4th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of RXO in a research note on Monday, December 22nd. Four equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $16.07.

RXO Trading Up 1.0%

Shares of NYSE:RXO opened at $15.48 on Monday. The stock has a 50 day moving average of $14.69 and a 200 day moving average of $14.72. The company has a market cap of $2.55 billion, a PE ratio of -26.68, a price-to-earnings-growth ratio of 11.83 and a beta of 1.65. The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 0.25. RXO has a 12-month low of $10.43 and a 12-month high of $18.69.

RXO (NYSE:RXO - Get Free Report) last announced its quarterly earnings data on Friday, February 6th. The company reported ($0.07) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.04) by ($0.03). The company had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.50 billion. RXO had a negative net margin of 1.74% and a negative return on equity of 0.44%. The company's revenue was down 11.9% compared to the same quarter last year. During the same quarter last year, the firm posted $0.06 earnings per share. As a group, equities research analysts expect that RXO will post 0.31 EPS for the current year.

Institutional Trading of RXO

Several hedge funds have recently modified their holdings of the company. Orbis Allan Gray Ltd raised its holdings in shares of RXO by 6.5% during the 4th quarter. Orbis Allan Gray Ltd now owns 34,677,755 shares of the company's stock worth $438,327,000 after acquiring an additional 2,104,597 shares in the last quarter. Vanguard Group Inc. raised its holdings in shares of RXO by 0.5% during the 4th quarter. Vanguard Group Inc. now owns 17,309,811 shares of the company's stock worth $218,796,000 after acquiring an additional 93,130 shares in the last quarter. Wellington Management Group LLP raised its holdings in shares of RXO by 7.9% during the 3rd 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 in the last quarter. Finepoint Capital LP purchased a new stake in shares of RXO during the 3rd quarter worth approximately $111,764,000. Finally, State Street Corp raised its holdings in shares of RXO by 3.7% during the 4th quarter. State Street Corp now owns 6,370,232 shares of the company's stock worth $80,520,000 after acquiring an additional 230,053 shares in the last quarter. 92.73% of the stock is owned by hedge funds and other institutional investors.

RXO Company Profile

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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