RXO (NYSE:RXO) Shares Gap Down After Earnings Miss

Shares of Rxo Inc (NYSE:RXO) gapped down before the market opened on Friday following a dissappointing earnings announcement. The stock had previously closed at $16.58, but opened at $15.35. RXO shares last traded at $15.7480, with a volume of 609,528 shares changing hands.

The company reported ($0.07) earnings per share for the quarter, missing the consensus estimate of ($0.04) by ($0.03). RXO had a negative net margin of 1.25% and a positive return on equity of 0.88%. The firm had revenue of $1.47 billion during the quarter, compared to analysts’ expectations of $1.50 billion. During the same period in the prior year, the company posted $0.06 EPS. The company’s revenue was down 11.9% compared to the same quarter last year.

RXO News Roundup

Here are the key news stories impacting RXO this week:

• Positive Sentiment: Management highlighted strong commercial momentum — the Brokerage late‑stage new business pipeline grew more than 50% year‑over‑year, which suggests revenue recovery potential as market conditions normalize. RXO Announces Fourth-Quarter Results
• Neutral Sentiment: The full Q4 earnings call transcript and slide deck are available for investors who want granular color on capacity, buy‑rates and client wins — useful for modeling timing of any margin recovery. RXO Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Analyst pieces and metric deep dives are starting to appear; they compare FY metrics vs. Street estimates and peers, which may drive further updates to models and price targets. Here’s What Key Metrics Tell Us About RXO (RXO) Q4 Earnings
• Negative Sentiment: Q4 results missed: EPS of ($0.07) vs. consensus ($0.04) miss and revenue $1.47B vs. $1.50B expected; revenue declined ~12% YoY and net margin was negative — immediate downside to near‑term profitability and analyst estimates. RXO Reports Q4 Loss, Misses Revenue Estimates
• Negative Sentiment: Management said a tightening freight market (reduced truckload capacity) compressed Brokerage buy rates and gross margins — this structural pressure is the main driver of the earnings miss and margin weakness. First look: Tough market for brokers evident in RXO 4Q earnings
• Negative Sentiment: Market reaction: several outlets report shares initially plunged (~double‑digit drop) on the margin and guidance implications, increasing near‑term volatility and potential downward pressure on sentiment/estimates. RXO shares tumble nearly 11% as market squeeze hits brokerage margins

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the stock. Wolfe Research upgraded shares of RXO from an “underperform” rating to a “peer perform” rating in a report on Friday, November 14th. Morgan Stanley raised shares of RXO from an “equal weight” rating to an “overweight” rating and set a $19.00 price objective for the company in a research report on Tuesday, November 11th. Truist Financial reduced their target price on shares of RXO from $20.00 to $18.00 and set a “buy” rating on the stock in a research report on Thursday, January 15th. Citigroup decreased their price target on shares of RXO from $16.00 to $15.00 and set a “neutral” rating for the company in a research note on Thursday, January 8th. Finally, Benchmark reissued a “hold” rating on shares of RXO in a research note on Thursday, January 15th. Four equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $16.07.

Insider Buying and Selling

In other news, CEO Andrew M. Wilkerson acquired 7,775 shares of RXO stock in a transaction that occurred on Monday, November 10th. The stock was purchased at an average price of $12.88 per share, for a total transaction of $100,142.00. Following the purchase, the chief executive officer directly owned 7,775 shares in the company, valued at $100,142. The trade was a ∞ increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Troy A. Cooper bought 8,317 shares of the stock in a transaction on Thursday, November 20th. The stock was purchased at an average price of $10.61 per share, with a total value of $88,243.37. Following the completion of the purchase, the director owned 275,416 shares of the company’s stock, valued at $2,922,163.76. This represents a 3.11% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last ninety days, insiders bought 19,942 shares of company stock worth $237,665. Insiders own 2.80% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. GSA Capital Partners LLP increased its position in RXO by 292.5% during the 4th quarter. GSA Capital Partners LLP now owns 86,175 shares of the company’s stock valued at $1,089,000 after buying an additional 64,217 shares in the last quarter. ProShare Advisors LLC grew its stake in shares of RXO by 3.2% during the fourth quarter. ProShare Advisors LLC now owns 31,634 shares of the company’s stock worth $400,000 after acquiring an additional 972 shares during the last quarter. Oregon Public Employees Retirement Fund grew its stake in shares of RXO by 1.6% during the fourth quarter. Oregon Public Employees Retirement Fund now owns 37,543 shares of the company’s stock worth $475,000 after acquiring an additional 600 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in shares of RXO during the fourth quarter valued at about $219,000. Finally, Versor Investments LP purchased a new position in shares of RXO in the 4th quarter valued at approximately $143,000. 92.73% of the stock is currently owned by hedge funds and other institutional investors.

RXO Stock Up 2.1%

The company’s 50-day moving average is $14.42 and its 200 day moving average is $15.19. The stock has a market capitalization of $2.78 billion, a PE ratio of -39.35, a price-to-earnings-growth ratio of 8.10 and a beta of 1.74. The company has a current ratio of 1.32, a quick ratio of 1.32 and a debt-to-equity ratio of 0.24.

RXO Company Profile

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.