RXO (NYSE:RXO) Shares Up 8.6% - Here's Why

Key Points

• RXO jumped 8.6% on Thursday to about $17.88, even though trading volume was roughly 54% below its average session volume.
• Wall Street sentiment is largely neutral — the consensus rating is "Hold" with a $15.77 target, though some firms have raised price targets (Citigroup to $18, Truist to $20) amid a mix of Buy/Hold/Sell opinions.
• RXO's latest quarter missed estimates (EPS -$0.07 vs. -$0.04 expected) with revenue of $1.47B (down 11.9% YoY) and negative profitability metrics, highlighting ongoing operational headwinds.

Rxo Inc (NYSE:RXO - Get Free Report)'s stock price shot up 8.6% during trading on Thursday . The stock traded as high as $17.92 and last traded at $17.88. 1,052,415 shares changed hands during mid-day trading, a decline of 54% from the average session volume of 2,274,921 shares. The stock had previously closed at $16.47.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on RXO shares. UBS Group reiterated a "neutral" rating on shares of RXO in a report on Sunday, February 8th. TD Cowen restated a "hold" rating on shares of RXO in a research report on Friday, January 9th. Citigroup increased their target price on RXO from $15.00 to $18.00 and gave the company a "neutral" rating in a research report on Monday, February 9th. Susquehanna lifted their price target on RXO from $10.00 to $11.00 and gave the company a "negative" rating in a research note on Thursday, January 8th. Finally, Truist Financial upped 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. Three investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat.com, RXO presently has a consensus rating of "Hold" and a consensus target price of $15.77.

RXO Price Performance

The company has a fifty day simple moving average of $14.79 and a 200 day simple moving average of $14.75. The stock has a market capitalization of $2.93 billion, a price-to-earnings ratio of -30.65, a P/E/G ratio of 21.36 and a beta of 1.65. The company has a debt-to-equity ratio of 0.25, a quick ratio of 1.27 and a current ratio of 1.27.

RXO (NYSE:RXO - Get Free Report) last issued its quarterly earnings results on Friday, February 6th. The company reported ($0.07) EPS for the quarter, missing analysts' consensus estimates of ($0.04) by ($0.03). The firm 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 business's revenue was down 11.9% compared to the same quarter last year. During the same period last year, the company posted $0.06 EPS. Equities research analysts forecast that Rxo Inc will post 0.31 EPS for the current fiscal year.

Institutional Trading of RXO

Several hedge funds have recently modified their holdings of RXO. Flagship Harbor Advisors LLC bought a new stake in RXO in the fourth quarter valued at $25,000. Geneos Wealth Management Inc. acquired a new stake in shares of RXO in the 1st quarter valued at about $30,000. Quarry LP bought a new stake in RXO in the 3rd quarter valued at about $33,000. Larson Financial Group LLC increased its position in RXO by 146.5% in the 3rd quarter. Larson Financial Group LLC now owns 2,766 shares of the company's stock valued at $43,000 after buying an additional 1,644 shares in the last quarter. Finally, Jones Financial Companies Lllp raised its stake in RXO by 27.0% during the 3rd quarter. Jones Financial Companies Lllp now owns 3,298 shares of the company's stock worth $49,000 after buying an additional 701 shares during the period. Institutional investors own 92.73% of the company's stock.

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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