RXO (NYSE:RXO) Shares Down 8% - Here's What Happened

Key Points

• RXO shares fell 8% on Monday to about $23.59, below the 50-day moving average of $26.56, with trading volume significantly below its average.
• Analyst sentiment remains mixed: the consensus rating is Hold with a $23.57 price target, although BMO initiated coverage with an Outperform rating and a $35 target, while Truist raised its target to $30 and maintained a Buy rating.
• RXO’s latest quarterly revenue exceeded expectations at $1.43 billion, but the company posted a loss of $0.09 per share, negative net margins and year-over-year revenue declined 0.6%.

Shares of Rxo Inc (NYSE:RXO - Get Free Report) dropped 8% during trading on Monday . The company traded as low as $23.76 and last traded at $23.5870. 475,528 shares traded hands during trading, a decline of 79% from the average session volume of 2,260,044 shares. The stock had previously closed at $25.63.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the stock. Weiss Ratings upgraded shares of RXO from a "sell (e+)" rating to a "sell (d-)" rating in a report on Thursday, June 4th. BMO Capital Markets began coverage on RXO in a report on Monday, July 13th. They set an "outperform" rating and a $35.00 target price on the stock. TD Cowen upped their target price on RXO from $14.00 to $21.00 and gave the stock a "hold" rating in a research report on Friday, May 8th. Stephens raised RXO to a "hold" rating in a research note on Wednesday, July 8th. Finally, Truist Financial lifted their price target on RXO from $26.00 to $30.00 and gave the company a "buy" rating in a research report on Wednesday, July 15th. Four investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $23.57.

RXO Stock Performance

The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 0.28. The company's 50-day moving average price is $26.56 and its two-hundred day moving average price is $19.65. The company has a market cap of $3.94 billion, a P/E ratio of -39.29 and a beta of 2.03.

RXO (NYSE:RXO - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported ($0.09) EPS for the quarter, hitting analysts' consensus estimates of ($0.09). RXO had a negative net margin of 1.83% and a negative return on equity of 1.16%. The business had revenue of $1.43 billion for the quarter, compared to the consensus estimate of $1.34 billion. During the same period in the previous year, the firm earned ($0.03) EPS. The business's revenue for the quarter was down .6% on a year-over-year basis. As a group, equities analysts forecast that Rxo Inc will post 0.07 earnings per share for the current year.

Institutional Trading of RXO

Hedge funds have recently made changes to their positions in the stock. City Holding Co. lifted its holdings in shares of RXO by 227.6% during the 2nd quarter. City Holding Co. now owns 1,245 shares of the company's stock valued at $34,000 after buying an additional 865 shares during the last quarter. Geneos Wealth Management Inc. acquired a new position in RXO in the first quarter worth approximately $30,000. Cassaday & Co Wealth Management LLC bought a new position in RXO during the first quarter valued at approximately $29,000. Flagship Harbor Advisors LLC acquired a new stake in RXO in the fourth quarter valued at approximately $25,000. Finally, Quarry LP acquired a new stake in RXO in the third quarter valued at approximately $33,000. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.