RXO (NYSE:RXO) Stock Rating Lowered by Jefferies Financial Group

RXO (NYSE:RXO) was downgraded by Jefferies Financial Group from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday, Marketbeat Ratings reports. They currently have a $30.00 target price on the stock. Jefferies Financial Group’s price target would suggest a potential upside of 5.65% from the stock’s previous close.

A number of other equities research analysts have also recently commented on the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of RXO in a research note on Tuesday, September 1st. Citigroup boosted their price target on RXO from $23.00 to $30.00 and gave the stock a “neutral” rating in a research note on Tuesday. BMO Capital Markets downgraded shares of RXO from an “outperform” rating to a “hold” rating and set a $30.25 price objective on the stock. in a report on Tuesday. Susquehanna upgraded shares of RXO from a “negative” rating to a “neutral” rating and cut their price objective for the company from $20.00 to $19.00 in a report on Wednesday, September 23rd. Finally, Benchmark reaffirmed a “hold” rating on shares of RXO in a research report on Tuesday, July 28th. Four investment analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $26.08.

RXO Price Performance

NYSE RXO opened at $28.39 on Tuesday. The firm’s fifty day simple moving average is $21.41 and its two-hundred day simple moving average is $22.14. The firm has a market capitalization of $4.68 billion, a P/E ratio of -46.55 and a beta of 2.10. The company has a current ratio of 1.27, a quick ratio of 1.27 and a debt-to-equity ratio of 0.30. RXO has a 12-month low of $10.43 and a 12-month high of $29.90.

RXO (NYSE:RXO) last issued its quarterly earnings data on Thursday, August 6th. The company reported $0.06 EPS for the quarter, beating the consensus estimate of $0.04 by $0.02. The firm had revenue of $1.77 billion during the quarter, compared to analyst estimates of $1.63 billion. RXO had a negative return on equity of 0.98% and a negative net margin of 1.72%.The business’s revenue for the quarter was up 25.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.04 EPS. Analysts forecast that RXO will post 0.14 EPS for the current fiscal year.

Hedge Funds Weigh In On RXO

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Maple Rock Capital Partners Inc. acquired a new stake in RXO during the 2nd quarter valued at approximately $71,283,000. Dimensional Fund Advisors LP increased its stake in shares of RXO by 32.7% in the first quarter. Dimensional Fund Advisors LP now owns 2,048,903 shares of the company’s stock worth $29,949,000 after acquiring an additional 504,955 shares during the period. Principal Financial Group Inc. increased its stake in shares of RXO by 2.0% in the first quarter. Principal Financial Group Inc. now owns 798,285 shares of the company’s stock worth $11,671,000 after acquiring an additional 16,029 shares during the period. Bank of America Corp DE raised its holdings in shares of RXO by 128.6% during the first quarter. Bank of America Corp DE now owns 724,060 shares of the company’s stock worth $10,586,000 after purchasing an additional 407,285 shares during the last quarter. Finally, Kennedy Capital Management LLC purchased a new position in shares of RXO during the fourth quarter worth $9,098,000. Institutional investors and hedge funds own 92.73% of the company’s stock.

RXO News Roundup

Here are the key news stories impacting RXO this week:

• Positive Sentiment: C.H. Robinson’s proposed $5.8 billion acquisition gives RXO shareholders a clear transaction-related valuation catalyst and would combine two major freight-brokerage platforms. Analysts say the deal could benefit from greater scale, network efficiencies and ongoing consolidation in the logistics industry. C.H. Robinson to Acquire RXO in $5.8B Logistics Deal
• Positive Sentiment: TD Cowen upgraded RXO from Sell to Hold and raised its price target to $30.25, signaling that the acquisition has improved the risk-reward profile. TD Cowen Upgrades RXO to Hold From Sell
• Neutral Sentiment: Analyst views are mixed following the announcement. JPMorgan upgraded RXO to Neutral and lifted its target to $30, while Jefferies moved from Buy to Hold with a $30 target. The targets suggest analysts see limited additional upside at the current valuation, despite the deal premium. Analysts see promise, risks in C.H. Robinson-RXO deal
• Neutral Sentiment: Market commentary highlights potential benefits from freight-industry consolidation but also raises questions about integration, competition and whether the combined company can maintain service quality and supply-chain resilience for shippers. C.H. Robinson’s $5.8B RXO acquisition aims to lead freight consolidation
• Negative Sentiment: An M&A law firm announced an investigation into the proposed sale, potentially adding legal and execution uncertainty. Such investigations are common in public-company acquisitions but could create delays or pressure the transaction terms if shareholder claims advance. Shareholder Alert: Investigation of RXO

About RXO

RXO, Inc is a transportation services company that provides asset-light freight brokerage and logistics solutions. The company connects shippers with independent carriers and helps coordinate the movement of truckload, less-than-truckload and other freight across North America.

RXO’s services include digital freight brokerage, managed transportation and last-mile logistics. Its brokerage business uses technology and carrier relationships to match customer shipments with available transportation capacity, while its managed transportation offerings help companies plan, coordinate and optimize freight operations.