RXO Shares Drop 3.7% as Analysts Adjust Ratings and Targets

Shares of RXO Inc (NYSE: RXO) fell by 3.7% during trading on Friday, closing at $13.69. This decline came after the stock had previously closed at $14.22, with around 276,448 shares changing hands—an 84% drop from its average daily volume of 1,776,177 shares.

Analysts have been actively revising their ratings and price targets for RXO. On November 7, 2023, Barclays lowered its price target from $17.00 to $15.00, maintaining an “overweight” rating. Conversely, Morgan Stanley upgraded RXO from “equal weight” to “overweight,” with a new target price of $19.00 announced on November 11, 2023. Meanwhile, The Goldman Sachs Group reduced its price target from $17.00 to $15.00, assigning a “neutral” rating in a report issued on October 9, 2023.

“The consensus rating for RXO remains ‘Hold’ with an average price target of $16.62,” according to data from MarketBeat.

In terms of performance, RXO released its earnings results on November 6, 2023. The company reported earnings of $0.01 per share, falling short of the consensus estimate of $0.03 by $0.02. RXO recorded a negative net margin of 1.25% and a positive return on equity of 0.88%. Revenue reached $1.42 billion, slightly below analysts’ expectations of $1.44 billion, though this represented a 34.6% increase compared to the same quarter last year. Forecasts suggest that RXO Inc will post $0.31 EPS for the current fiscal year.

In insider trading news, CEO Andrew M. Wilkerson purchased 7,775 shares on November 10, 2023, at an average price of $12.88 per share, totaling approximately $100,142. Following this acquisition, Wilkerson holds a total of 7,775 shares valued at about $100,142. Additionally, Director Troy A. Cooper acquired 8,317 shares on November 20, 2023, at an average price of $10.61, resulting in a transaction worth around $88,243.37. Cooper now owns 275,416 shares valued at approximately $2,922,163.76. Insider trading activity in the last quarter included the acquisition of 40,250 shares valued at $488,875, with insiders currently holding 2.80% of the stock.

Institutional investors have also been active with RXO shares. Yousif Capital Management LLC increased its position by 1.2% in the second quarter, now owning 53,228 shares worth $837,000. Universal Beteiligungs und Servicegesellschaft mbH raised its holdings by 6.1% during the third quarter, while Wealth Enhancement Advisory Services LLC boosted its stake by 3.3%. Notably, New York State Teachers Retirement System increased its stake by 0.6%, and institutional investors collectively own 92.73% of RXO stock.

RXO Inc is recognized as a leading provider of digital freight brokerage and managed transportation solutions. The company utilizes a proprietary technology platform to connect shippers with a network of third-party carriers, facilitating optimized route planning, real-time shipment tracking, and dynamic pricing. Operating primarily across North America, RXO serves a diverse clientele across various industries, including retail, consumer goods, manufacturing, and automotive.

As RXO navigates through this challenging period, investors are closely monitoring both stock performance and analyst recommendations to make informed decisions.