RXO (NYSE:RXO) Trading Down 7.1% - Here's Why

Key Points

• RXO shares fell 7.1% to $20.93, trading below the 50-day moving average of $25.02 but slightly above the 200-day average of $20.65. Trading volume was 67% below the average session volume.
• Analyst sentiment remains mixed: RXO has a consensus “Hold” rating and an average price target of $23.85, with recent targets ranging from $20 to $31.
• Despite the stock decline, RXO reported quarterly results above expectations, posting $0.06 in EPS versus $0.04 forecast and $1.77 billion in revenue, up 25% year over year. Institutional investors own 92.73% of the company’s shares.

Rxo Inc (NYSE:RXO - Get Free Report) shares dropped 7.1% on Monday . The stock traded as low as $20.96 and last traded at $20.93. 751,988 shares changed hands during trading, a decline of 67% from the average session volume of 2,247,130 shares. The stock had previously closed at $22.54.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the company. Deutsche Bank Aktiengesellschaft set a $30.00 price objective on RXO in a report on Friday, August 7th. Susquehanna lifted their price target on RXO from $18.00 to $20.00 and gave the company a "negative" rating in a research report on Tuesday, July 14th. Citigroup raised RXO from a "market perform" rating to an "outperform" rating in a report on Friday, August 7th. Barclays upped their price objective on RXO from $20.00 to $28.00 and gave the stock an "overweight" rating in a research report on Thursday, June 25th. Finally, Stifel Nicolaus set a $31.00 price objective on shares of RXO in a research note on Friday, August 7th. Five investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and four have given a Sell rating to the stock. According to MarketBeat, RXO presently has a consensus rating of "Hold" and an average target price of $23.85.

RXO Stock Down 6.9%

The business's 50 day moving average is $25.02 and its 200-day moving average is $20.65. The stock has a market cap of $3.46 billion, a price-to-earnings ratio of -34.39 and a beta of 2.10. The company has a debt-to-equity ratio of 0.30, 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 Thursday, August 6th. The company reported $0.06 EPS for the quarter, topping the consensus estimate of $0.04 by $0.02. The company had revenue of $1.77 billion during the quarter, compared to analyst estimates of $1.63 billion. RXO had a negative net margin of 1.72% and a negative return on equity of 0.98%. The firm's revenue was up 25.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.04 EPS. On average, sell-side analysts predict that Rxo Inc will post 0.13 EPS for the current fiscal year.

Institutional Investors Weigh In On RXO

Several institutional investors have recently bought and sold shares of the company. Orbis Allan Gray Ltd raised its holdings in shares of RXO by 6.5% during the fourth quarter. Orbis Allan Gray Ltd now owns 34,677,755 shares of the company's stock valued at $438,327,000 after acquiring an additional 2,104,597 shares during the last quarter. Vanguard Group Inc. boosted its stake 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 during the last quarter. Wellington Management Group LLP increased 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 in the last quarter. State Street Corp increased its position in shares of RXO by 3.7% during the fourth quarter. State Street Corp now owns 6,370,232 shares of the company's stock worth $80,520,000 after purchasing an additional 230,053 shares in the last quarter. Finally, Geode Capital Management LLC raised its stake in RXO by 0.5% in the 4th quarter. Geode Capital Management LLC now owns 3,876,488 shares of the company's stock valued at $49,008,000 after purchasing an additional 18,110 shares during the last quarter. 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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