RXO (NYSE:RXO) Shares Gap Down After Earnings Miss

Rxo Inc (NYSE:RXO) gapped down prior to trading on Friday following a weaker than expected earnings announcement. The stock had previously closed at $16.58, but opened at $15.35. RXO shares last traded at $15.7480, with a volume of 609,528 shares traded.

The company reported ($0.07) earnings per share for the quarter, missing the consensus estimate of ($0.04) by ($0.03). The firm had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.50 billion. RXO had a negative net margin of 1.25% and a positive return on equity of 0.88%. The company’s revenue was down 11.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.06 EPS.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Susquehanna upped their target price on shares of RXO from $10.00 to $11.00 and gave the stock a “negative” rating in a research note on Thursday, January 8th. Morgan Stanley raised RXO from an “equal weight” rating to an “overweight” rating and set a $19.00 target price on the stock in a report on Tuesday, November 11th. Wall Street Zen cut RXO from a “hold” rating to a “sell” rating in a research note on Saturday, November 8th. Truist Financial dropped their price target on shares of RXO from $20.00 to $18.00 and set a “buy” rating on the stock in a research note on Thursday, January 15th. Finally, UBS Group dropped their target price on shares of RXO from $17.00 to $15.00 and set a “neutral” rating on the stock in a research report on Friday, November 7th. Four equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat.com, RXO has a consensus rating of “Hold” and an average price target of $16.07.

Insider Buying and Selling

In other RXO news, Director Troy A. Cooper purchased 8,317 shares of the firm’s stock in a transaction that occurred on Thursday, November 20th. The shares were purchased at an average cost of $10.61 per share, for a total transaction of $88,243.37. Following the completion of the purchase, the director directly owned 275,416 shares in the company, valued at $2,922,163.76. This represents a 3.11% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Andrew M. Wilkerson bought 7,775 shares of RXO stock in a transaction on Monday, November 10th. The stock was purchased at an average price of $12.88 per share, for a total transaction of $100,142.00. Following the completion of the acquisition, the chief executive officer owned 7,775 shares in the company, valued at $100,142. This represents a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have bought 19,942 shares of company stock valued at $237,665. Company insiders own 2.80% of the company’s stock.

Institutional Investors Weigh In On RXO

Hedge funds have recently modified their holdings of the stock. Oregon Public Employees Retirement Fund raised its stake in shares of RXO by 1.6% during the fourth quarter. Oregon Public Employees Retirement Fund now owns 37,543 shares of the company’s stock valued at $475,000 after purchasing an additional 600 shares during the period. Yousif Capital Management LLC increased its stake in RXO by 1.2% during the 2nd quarter. Yousif Capital Management LLC now owns 53,228 shares of the company’s stock worth $837,000 after buying an additional 631 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH lifted its holdings in RXO by 6.1% in the 3rd quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 11,453 shares of the company’s stock worth $176,000 after buying an additional 654 shares in the last quarter. Wealth Enhancement Advisory Services LLC boosted its position in RXO by 3.3% in the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 20,428 shares of the company’s stock valued at $345,000 after buying an additional 661 shares during the last quarter. Finally, New York State Teachers Retirement System boosted its holdings in RXO by 0.6% in the third quarter. New York State Teachers Retirement System now owns 116,604 shares of the company’s stock valued at $1,793,000 after purchasing an additional 700 shares during the last quarter. 92.73% of the stock is currently owned by hedge funds and other institutional investors.

RXO Stock Up 0.2%

The firm has a fifty day simple moving average of $14.35 and a 200-day simple moving average of $15.19. The company has a market capitalization of $2.73 billion, a PE ratio of -37.88, a P/E/G ratio of 8.33 and a beta of 1.74. The company has a debt-to-equity ratio of 0.24, a quick ratio of 1.32 and a current ratio of 1.32.

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.