RXO (NYSE:RXO) Stock Rating Cut to Hold at Jefferies Financial Group

RXO (NYSE:RXO) was downgraded by equities researchers at Jefferies Financial Group from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday, Marketbeat reports. They currently have a $30.00 price target on the stock. Jefferies Financial Group’s price objective would indicate a potential upside of 5.21% from the company’s current price.

RXO has been the topic of several other reports. The Goldman Sachs Group lifted their price target on RXO from $18.00 to $20.00 and gave the company a “neutral” rating in a research report on Thursday, July 16th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of RXO in a report on Tuesday, September 1st. TD Cowen upgraded shares of RXO from a “sell” rating to a “hold” rating and boosted their price target for the stock from $17.50 to $30.25 in a research report on Monday. Stifel Nicolaus set a $31.00 price target on shares of RXO in a report on Friday, August 7th. Finally, William Blair set a $30.00 price objective on shares of RXO in a research report on Friday, August 7th. Four equities research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $25.97.

RXO Price Performance

Shares of NYSE RXO opened at $28.52 on Tuesday. RXO has a fifty-two week low of $10.43 and a fifty-two week high of $29.90. The firm’s 50-day simple moving average is $21.29 and its 200 day simple moving average is $22.03. 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 stock has a market cap of $4.70 billion, a P/E ratio of -46.75 and a beta of 2.10.

RXO (NYSE:RXO) last released its earnings results 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 for the quarter, compared to analysts’ expectations 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% on a year-over-year basis. During the same quarter last year, the company earned $0.04 EPS. Equities analysts expect that RXO will post 0.14 EPS for the current year.

Institutional Trading of RXO

Hedge funds and other institutional investors have recently modified their holdings of the business. Maple Rock Capital Partners Inc. purchased a new position in shares of RXO during the second quarter valued at $71,283,000. Dimensional Fund Advisors LP boosted its position in RXO by 32.7% during the 1st 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. boosted its position in RXO by 2.0% during the 1st 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 grew its stake in RXO by 128.6% during the 1st quarter. Bank of America Corp DE now owns 724,060 shares of the company’s stock valued at $10,586,000 after acquiring an additional 407,285 shares in the last quarter. Finally, Kennedy Capital Management LLC acquired a new position in shares of RXO in the 4th quarter valued at about $9,098,000. Institutional investors and hedge funds own 92.73% of the company’s stock.

Key Stories Impacting RXO

Here are the key news stories impacting RXO this week:

• Positive Sentiment: C.H. Robinson will pay RXO shareholders $17.25 in cash plus 0.0856 shares of C.H. Robinson common stock per RXO share, implying total consideration of about $30.25 per share. RXO shareholders are expected to own roughly 11% of the combined company. C.H. Robinson to buy RXO for $5.8 billion in truck broking expansion
• Positive Sentiment: The combination would create a logistics business with enterprise value above $25 billion and is intended to strengthen C.H. Robinson’s position in North American truck brokerage amid industry consolidation. Management expects approximately $300 million in annual synergies and earnings accretion in less than a year. Why C.H. Robinson stock was tumbling today
• Positive Sentiment: JPMorgan upgraded RXO from “underweight” to “neutral” and raised its price target from $22 to $30, while Zacks upgraded the stock to a Buy-equivalent rank. These actions provide additional support for the recent momentum. RXO upgraded to Neutral at JPMorgan
• Neutral Sentiment: Jefferies downgraded RXO from “buy” to “hold” but retained a $30 price target, suggesting limited upside beyond the proposed transaction value at current levels. RXO stock rating reaffirmed as Hold by Jefferies
• Negative Sentiment: Several shareholder-rights law firms announced investigations into whether RXO is receiving a fair price, including reviews of deal protections, insider benefits and potential competing offers. Such investigations could create legal costs or delay, although they do not by themselves indicate that the transaction will fail. M&A Class Action Firm 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.