RXO (NYSE:RXO) Reaches New 1-Year High - Still a Buy?

Key Points

• RXO hit a new 52-week high — shares traded as high as $18.84 and last at $18.89, rising about 5.8% on the day with volume of 115,746 shares.
• The analyst consensus is a “Hold” with an average price target of $15.77 (3 Buys, 10 Holds, 3 Sells), so the stock is trading notably above the average target.
• Recent quarterly results missed estimates—EPS ($0.07) vs. ($0.04) expected and revenue down 11.9% YoY to $1.47B—while margins and ROE remain negative; institutional ownership is very high at ~92.7%.

Rxo Inc (NYSE:RXO - Get Free Report)'s share price hit a new 52-week high on Friday . The stock traded as high as $18.84 and last traded at $18.8910, with a volume of 115746 shares. The stock had previously closed at $17.98.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on RXO shares. Stifel Nicolaus set a $15.00 target price on RXO in a report on Thursday, February 5th. Barclays increased their target price on RXO from $15.00 to $17.00 and gave the stock an "overweight" rating in a report on Wednesday, March 4th. Susquehanna upped their price target on shares of RXO from $10.00 to $11.00 and gave the stock a "negative" rating in a research report on Thursday, January 8th. Zacks Research upgraded shares of RXO from a "strong sell" rating to a "hold" rating in a research report on Monday, April 6th. Finally, TD Cowen reissued a "hold" rating on shares of RXO in a research note on Friday, January 9th. Three analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, RXO currently has an average rating of "Hold" and an average price target of $15.77.

RXO Stock Up 5.8%

The company has a debt-to-equity ratio of 0.25, a quick ratio of 1.27 and a current ratio of 1.27. The company has a market cap of $3.13 billion, a P/E ratio of -32.92, a PEG ratio of 21.66 and a beta of 1.65. The firm's 50-day simple moving average is $14.82 and its 200 day simple moving average is $14.78.

RXO (NYSE:RXO - Get Free Report) last released its quarterly earnings data on Friday, February 6th. The company reported ($0.07) EPS for the quarter, missing analysts' consensus estimates 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 company had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.50 billion. During the same quarter in the prior year, the company posted $0.06 EPS. The company's revenue for the quarter was down 11.9% compared to the same quarter last year. On average, research analysts forecast that Rxo Inc will post 0.31 earnings per share for the current fiscal year.

Institutional Investors Weigh In On RXO

Several hedge funds have recently bought and sold shares of the company. Orbis Allan Gray Ltd increased its position 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 in the last quarter. Vanguard Group Inc. increased its holdings in shares of RXO by 0.5% in the fourth 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 position in shares of 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 purchasing an additional 735,810 shares during the period. Finepoint Capital LP bought a new position in shares of RXO during the 3rd quarter valued at about $111,764,000. Finally, State Street Corp grew its position in shares of RXO by 3.7% in the 4th quarter. State Street Corp now owns 6,370,232 shares of the company's stock valued at $80,520,000 after purchasing an additional 230,053 shares during the period. 92.73% of the stock is currently owned by institutional investors and hedge funds.

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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