RXO (NYSE:RXO) Stock Dropped to Hold by Jefferies Financial Group

Jefferies Financial Group lowered shares of RXO (NYSE:RXO) from a buy rating to a hold rating in a research note released on Tuesday morning, MarketBeat reports. The firm currently has $30.00 target price on the stock.

Several other equities analysts have also weighed in on RXO. William Blair set a $30.00 price objective on shares of RXO in a report on Friday, August 7th. BMO Capital Markets downgraded RXO from an “outperform” rating to a “market perform” rating and set a $30.25 target price for the company. in a research note on Tuesday. Wells Fargo & Company reaffirmed a “positive” rating on shares of RXO in a research report on Thursday, September 10th. UBS Group set a $19.00 price target on RXO in a research note on Wednesday, September 23rd. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of RXO in a report on Tuesday, September 1st. Four research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $25.97.

RXO Stock Performance

Shares of RXO stock opened at $28.52 on Tuesday. The firm has a 50 day moving average of $21.29 and a 200-day moving average of $22.03. The company has a market cap of $4.70 billion, a price-to-earnings ratio of -46.75 and a beta of 2.10. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 0.30. RXO has a 52 week low of $10.43 and a 52 week high of $29.90.

RXO (NYSE:RXO) last released its earnings results on Thursday, August 6th. The company reported $0.06 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.04 by $0.02. The company had revenue of $1.77 billion for the quarter, compared to the consensus estimate of $1.63 billion. RXO had a negative net margin of 1.72% and a negative return on equity of 0.98%. RXO’s quarterly revenue was up 25.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.04 EPS. On average, equities analysts forecast that RXO will post 0.14 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. City Holding Co. increased its position in shares of 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 in the last quarter. Cassaday & Co Wealth Management LLC bought a new position in RXO in the 1st quarter valued at about $29,000. Nykredit A S acquired a new position in RXO during the 2nd quarter valued at about $67,000. Public Employees Retirement System of Ohio boosted its stake in RXO by 18.3% during the 1st quarter. Public Employees Retirement System of Ohio now owns 4,196 shares of the company’s stock valued at $61,000 after purchasing an additional 649 shares during the last quarter. Finally, Integrated Wealth Concepts LLC bought a new stake in RXO during the 2nd quarter worth approximately $133,000. 92.73% of the stock is currently owned by institutional investors and hedge funds.

RXO News Roundup

Here are the key news stories impacting RXO this week:

• Positive Sentiment: RXO shareholders would receive $17.25 in cash plus 0.0856 CHRW shares for each RXO share, representing implied consideration of approximately $30.25 per share based on the announcement terms. RXO investors are expected to own about 11% of the combined company. C.H. Robinson to buy RXO for $5.8 billion in truck broking expansion
• Positive Sentiment: Management expects the combination to generate approximately $300 million in annual synergies and be accretive to earnings in less than a year. The transaction would expand C.H. Robinson’s truck-brokerage operations and create a logistics company with enterprise value above $25 billion. Why C.H. Robinson stock was tumbling today
• Neutral Sentiment: Analyst views became more cautious after the deal: JPMorgan upgraded RXO from Underweight to Neutral and raised its target to $30, while Jefferies moved from Buy to Hold with a $30 target. These targets remain below the stated implied transaction value. RXO upgraded to Neutral at JPMorgan
• Negative Sentiment: Several shareholder-rights law firms are investigating whether RXO is receiving a fair price, including potential conflicts, insider benefits, and restrictions on competing offers. Such reviews could increase litigation or completion risk, although they do not necessarily indicate wrongdoing. Shareholder alert investigation of RXO

RXO Company Profile

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.