Traders Buy High Volume of Call Options on QXO (NYSE:QXO)

Key Points

• QXO call-option activity surged: Investors purchased 36,622 call options, about 52% above the average volume of 24,051 contracts.
• Institutional ownership remains high: Hedge funds and other institutional investors own 58.68% of QXO, with several major investors significantly increasing their stakes.
• Analysts remain generally bullish despite mixed performance: QXO has a “Moderate Buy” consensus rating and an average price target of $29.71, while shares recently rose 9.6% to $15.45. The company missed its latest quarterly EPS estimate and continues to report a negative net margin.

QXO, Inc. (NYSE:QXO - Get Free Report) was the recipient of unusually large options trading on Tuesday. Investors acquired 36,622 call options on the company. This is an increase of approximately 52% compared to the average volume of 24,051 call options.

Hedge Funds Weigh In On QXO

A number of large investors have recently bought and sold shares of the stock. Fred Alger Management LLC grew its stake in shares of QXO by 75.4% during the 4th quarter. Fred Alger Management LLC now owns 15,923,937 shares of the company's stock valued at $307,173,000 after buying an additional 6,844,574 shares during the period. Baillie Gifford & Co. increased its stake in QXO by 16,117.6% during the fourth quarter. Baillie Gifford & Co. now owns 14,735,164 shares of the company's stock worth $284,241,000 after acquiring an additional 14,644,305 shares during the last quarter. Schf GPE LLC raised its holdings in shares of QXO by 204.3% in the 2nd quarter. Schf GPE LLC now owns 13,319,457 shares of the company's stock worth $286,901,000 after purchasing an additional 8,943,089 shares during the period. Cercano Management LLC lifted its stake in shares of QXO by 2.4% in the 4th quarter. Cercano Management LLC now owns 10,815,832 shares of the company's stock valued at $208,637,000 after purchasing an additional 255,366 shares in the last quarter. Finally, Consulta Ltd grew its holdings in shares of QXO by 33.3% during the 4th quarter. Consulta Ltd now owns 10,000,000 shares of the company's stock worth $192,900,000 after purchasing an additional 2,500,000 shares during the period. Hedge funds and other institutional investors own 58.68% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on QXO. Oppenheimer increased their price target on shares of QXO from $30.00 to $32.00 and gave the company an "outperform" rating in a report on Monday, April 27th. Wells Fargo & Company set a $18.00 target price on shares of QXO in a report on Tuesday, July 28th. Stephens reduced their price target on shares of QXO from $29.00 to $26.00 and set an "overweight" rating on the stock in a report on Thursday, May 14th. Royal Bank Of Canada reiterated an "outperform" rating and issued a $27.00 price target on shares of QXO in a research report on Friday, July 10th. Finally, KeyCorp cut their price objective on QXO from $32.00 to $28.00 and set an "overweight" rating for the company in a research report on Wednesday, July 1st. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $29.71.

QXO Trading Up 9.6%

Shares of NYSE:QXO traded up $1.35 during midday trading on Tuesday, reaching $15.45. The company's stock had a trading volume of 24,400,892 shares, compared to its average volume of 15,222,034. The firm has a market cap of $16.02 billion, a price-to-earnings ratio of -17.00, a price-to-earnings-growth ratio of 2.38 and a beta of 2.28. The company has a quick ratio of 2.47, a current ratio of 3.33 and a debt-to-equity ratio of 0.35. QXO has a 1 year low of $13.18 and a 1 year high of $27.61. The business has a 50 day moving average price of $15.74 and a 200 day moving average price of $19.54.

QXO (NYSE:QXO - Get Free Report) last issued its quarterly earnings results on Tuesday, May 12th. The company reported ($0.12) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.09) by ($0.03). QXO had a positive return on equity of 1.91% and a negative net margin of 6.02%.The business had revenue of $1.73 billion during the quarter, compared to analyst estimates of $1.73 billion. QXO's revenue for the quarter was up 12716.3% on a year-over-year basis. Research analysts forecast that QXO will post 0.28 EPS for the current year.

QXO Company Profile

QXO, Inc operates as a business application, technology, and consulting company in North America. The company provides solutions for accounting and business management, financial reporting, enterprise resource planning, human capital management, warehouse management systems, customer relationship management, and business intelligence. It also offers value-added services that focuses on consulting and professional, specialized programming, training, and technical support services. In addition, the company provides information technology managed services, such as cybersecurity, application hosting, disaster recovery, business continuity, cloud, and other services; and data back-up, network maintenance, and upgrade services.

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