RXO (NYSE:RXO) Trading Down 7.1% – Here’s Why

Rxo Inc (NYSE:RXO)’s share price traded down 7.1% during mid-day trading on Monday . The company traded as low as $20.96 and last traded at $20.93. 751,988 shares were traded during trading, a decline of 67% from the average daily volume of 2,247,130 shares. The stock had previously closed at $22.54.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on the stock. The Goldman Sachs Group increased their target price on shares of RXO from $18.00 to $20.00 and gave the company a “neutral” rating in a research report on Thursday, July 16th. UBS Group dropped their price objective on shares of RXO from $26.00 to $23.00 and set a “neutral” rating for the company in a research note on Friday, August 7th. Wells Fargo & Company increased their price objective on shares of RXO from $15.00 to $22.00 and gave the company an “equal weight” rating in a report on Friday, May 8th. Barclays increased their price objective on shares of RXO from $20.00 to $28.00 and gave the company an “overweight” rating in a report on Thursday, June 25th. Finally, Truist Financial lowered their target price on RXO from $30.00 to $28.00 and set a “buy” rating on the stock in a report on Friday, August 7th. Five research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $23.85.

RXO Trading Down 6.9%

The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 0.30. The company’s 50-day moving average is $25.02 and its 200-day moving average is $20.65. The stock has a market capitalization of $3.46 billion, a price-to-earnings ratio of -34.39 and a beta of 2.10.

RXO (NYSE:RXO) last posted its earnings results on Thursday, August 6th. The company reported $0.06 earnings per share for the quarter, beating the consensus estimate of $0.04 by $0.02. RXO had a negative net margin of 1.72% and a negative return on equity of 0.98%. The company had revenue of $1.77 billion for the quarter, compared to analyst estimates of $1.63 billion. During the same period in the previous year, the business posted $0.04 EPS. RXO’s revenue was up 25.0% on a year-over-year basis. Research analysts anticipate that Rxo Inc will post 0.13 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. City Holding Co. increased its stake in RXO by 227.6% during the second quarter. City Holding Co. now owns 1,245 shares of the company’s stock worth $34,000 after acquiring an additional 865 shares during the last quarter. Geneos Wealth Management Inc. purchased a new position in shares of RXO during the 1st quarter worth $30,000. Cassaday & Co Wealth Management LLC purchased a new position in shares of RXO during the 1st quarter worth $29,000. Quarry LP acquired a new stake in shares of RXO during the 3rd quarter worth about $33,000. Finally, Nykredit A S acquired a new stake in shares of RXO during the 2nd quarter worth about $67,000. 92.73% of the stock is currently owned by hedge funds and other institutional investors.

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.