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

Key Points

• RXO shares gapped down at the open on Friday, falling from a prior close of $27.77 to an opening price of $26.44 and last trading around $25.57.
• Analyst sentiment remains mixed: recent reports included target hikes from Wells Fargo and TD Cowen, while BMO started coverage with an outperform rating; overall, RXO’s consensus rating is Hold with a consensus price target of $23.57.
• The company recently reported Q1 earnings in line with expectations, posting EPS of -$0.09 on revenue of $1.43 billion, though revenue slipped 0.6% year over year and the firm continues to show negative profitability metrics.

Shares of Rxo Inc (NYSE:RXO - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $27.77, but opened at $26.44. RXO shares last traded at $25.5650, with a volume of 190,464 shares trading hands.

Analysts Set New Price Targets

Several research analysts have issued reports on RXO shares. Wells Fargo & Company upped their price target on RXO from $15.00 to $22.00 and gave the company an "equal weight" rating in a report on Friday, May 8th. BMO Capital Markets started coverage on RXO in a research report on Monday, July 13th. They set an "outperform" rating and a $35.00 target price on the stock. Citizens Jmp began coverage on RXO in a report on Wednesday, July 15th. They set a "market perform" rating for the company. TD Cowen increased their price target on RXO from $14.00 to $21.00 and gave the company a "hold" rating in a research report on Friday, May 8th. Finally, Wall Street Zen upgraded RXO from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. Four research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, RXO presently has a consensus rating of "Hold" and a consensus price target of $23.57.

RXO Price Performance

The stock has a market capitalization of $4.20 billion, a price-to-earnings ratio of -41.65 and a beta of 2.03. 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 stock has a 50-day simple moving average of $26.42 and a 200 day simple moving average of $19.56.

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

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Orbis Allan Gray Ltd grew its stake in RXO by 6.5% in the fourth quarter. Orbis Allan Gray Ltd now owns 34,677,755 shares of the company's stock valued at $438,327,000 after purchasing an additional 2,104,597 shares in the last quarter. Franklin Resources Inc. raised its stake 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 worth $35,818,000 after purchasing an additional 1,110,530 shares in the last quarter. Vaughan Nelson Investment Management L.P. purchased a new stake in shares of RXO during the 4th quarter worth about $11,224,000. Wellington Management Group LLP lifted 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 valued at $153,780,000 after buying an additional 735,810 shares during the last quarter. Finally, Kennedy Capital Management LLC acquired a new stake in shares of RXO during the 4th quarter valued at about $9,098,000. 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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