RXO (NYSE:RXO) Upgraded at Wall Street Zen

Key Points

• RXO was upgraded by Wall Street Zen from “sell” to “hold,” while several other analysts recently raised price targets but kept mixed ratings overall. The stock’s consensus rating remains “Reduce” with a consensus price target of $19.54.
• RXO’s latest quarter matched EPS estimates and beat revenue expectations, reporting revenue of $1.43 billion versus the expected $1.34 billion. The company still posted a quarterly loss and slightly lower year-over-year revenue, keeping profitability in focus.
• Management’s Q2 outlook came in above Street expectations, with adjusted EBITDA projected at $27 million to $37 million. The company also said contract rates are improving and brokerage momentum is strengthening, which could support margins ahead.

RXO (NYSE:RXO - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a report issued on Saturday.

Other equities research analysts also recently issued reports about the stock. Barclays increased their price objective on shares of RXO from $17.00 to $20.00 and gave the company an "overweight" rating in a research report on Friday. Truist Financial lifted their price objective on shares of RXO from $20.00 to $26.00 and gave the stock a "buy" rating in a research report on Friday. Morgan Stanley reiterated an "equal weight" rating and set a $22.00 target price (up from $19.00) on shares of RXO in a research note on Thursday. UBS Group increased their target price on RXO from $17.00 to $22.00 and gave the company a "neutral" rating in a report on Friday. Finally, Benchmark restated a "hold" rating on shares of RXO in a research note on Monday, February 9th. Two analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Reduce" and a consensus price target of $19.54.

RXO Stock Performance

Shares of RXO opened at $21.80 on Friday. RXO has a 1 year low of $10.43 and a 1 year high of $23.37. The stock has a market capitalization of $3.59 billion, a PE ratio of -35.74, a PEG ratio of 41.32 and a beta of 1.96. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.27 and a current ratio of 1.27. The stock has a 50-day simple moving average of $15.96 and a 200-day simple moving average of $15.01.

RXO (NYSE:RXO - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported ($0.09) earnings per share for the quarter, hitting analysts' consensus estimates of ($0.09). The firm had revenue of $1.43 billion for the quarter, compared to analyst estimates of $1.34 billion. RXO had a negative net margin of 1.83% and a negative return on equity of 1.16%. The business's quarterly revenue was down .6% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.03) earnings per share. On average, analysts predict that RXO will post 0.02 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Principal Financial Group Inc. boosted its holdings in shares of RXO by 11.8% in the third quarter. Principal Financial Group Inc. now owns 791,799 shares of the company's stock valued at $12,178,000 after acquiring an additional 83,305 shares during the period. Finepoint Capital LP acquired a new position in shares of RXO in the 3rd quarter valued at $111,764,000. Cornerstone Wealth Group LLC purchased a new stake in RXO in the 3rd quarter valued at $4,026,000. Public Sector Pension Investment Board raised its position in RXO by 31.6% in the 3rd quarter. Public Sector Pension Investment Board now owns 639,606 shares of the company's stock valued at $9,837,000 after purchasing an additional 153,468 shares during the last quarter. Finally, Vanguard Group Inc. boosted its stake in RXO by 1.4% during the 3rd quarter. Vanguard Group Inc. now owns 17,216,681 shares of the company's stock worth $264,793,000 after purchasing an additional 233,434 shares during the period. Institutional investors and hedge funds own 92.73% of the company's stock.

Key Stories Impacting RXO

Here are the key news stories impacting RXO this week:

• Positive Sentiment: RXO reported Q1 adjusted results that matched EPS expectations and beat revenue estimates, helping ease concerns about demand trends and Amazon-related weakness. RXO Announces First-Quarter Results and Second-Quarter Outlook
• Positive Sentiment: The company’s Q2 outlook also topped Street expectations, with management projecting $27 million to $37 million in adjusted EBITDA and saying contract rates are trending toward high-single-digit gains. RXO expects $27M-$37M Q2 adjusted EBITDA...
• Positive Sentiment: Management said brokerage momentum is improving, full truckload volume strengthened through the quarter, and higher spot mix should support margins going forward. RXO raises contract rate outlook as Q2 profit seen higher
• Neutral Sentiment: Analysts raised price targets after the report, with TD Cowen lifting its target to $21 and Susquehanna increasing its target to $18, but both firms kept cautious ratings. Analyst updates on RXO
• Negative Sentiment: RXO still posted a quarterly loss, and revenue was slightly down year over year, so investors remain focused on whether improved pricing and volume can translate into sustained profitability. RXO Reports Q1 Loss...

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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