RXO (NYSE:RXO) Shares Down 5.2% After Earnings Miss

Rxo Inc (NYSE:RXO)’s share price dropped 5.2% during trading on Monday after the company announced weaker than expected quarterly earnings. The stock traded as low as $15.96 and last traded at $16.0150. Approximately 866,270 shares were traded during mid-day trading, a decline of 59% from the average daily volume of 2,100,408 shares. The stock had previously closed at $16.90.

The company reported ($0.07) earnings per share for the quarter, missing the consensus estimate of ($0.04) by ($0.03). The firm had revenue of $1.47 billion for the quarter, compared to analysts’ expectations of $1.50 billion. RXO had a negative net margin of 1.74% and a negative return on equity of 0.44%. The business’s quarterly revenue was down 11.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.06 EPS.

Analyst Ratings Changes

Several equities analysts have commented on the stock. Zacks Research lowered shares of RXO from a “hold” rating to a “strong sell” rating in a research report on Friday, January 9th. Truist Financial increased their price target on shares of RXO from $18.00 to $20.00 and gave the company a “buy” rating in a report on Monday. UBS Group reiterated a “neutral” rating on shares of RXO in a research report on Sunday. Morgan Stanley upgraded RXO from an “equal weight” rating to an “overweight” rating and set a $19.00 price objective on the stock in a research report on Tuesday, November 11th. Finally, Citigroup raised their price objective on RXO from $15.00 to $18.00 and gave the company a “neutral” rating in a research note on Monday. Four research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $16.33.

Insider Activity at RXO

In other RXO news, Director Troy A. Cooper bought 8,317 shares of the business’s stock in a transaction dated Thursday, November 20th. The shares were 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 in the company, valued at $2,922,163.76. This represents a 3.11% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Corporate insiders own 1.48% of the company’s stock.

Hedge Funds Weigh In On RXO

Several hedge funds have recently bought and sold shares of the business. Geneos Wealth Management Inc. purchased a new stake in shares of RXO during the first quarter valued at $30,000. AlphaQuest LLC purchased a new stake in RXO in the 2nd quarter valued at about $29,000. Flagship Harbor Advisors LLC bought a new position in RXO in the 4th quarter worth about $25,000. Quarry LP bought a new position in RXO in the 3rd quarter worth about $33,000. Finally, Larson Financial Group LLC increased its position in shares of RXO by 146.5% during the third quarter. Larson Financial Group LLC now owns 2,766 shares of the company’s stock worth $43,000 after acquiring an additional 1,644 shares during the period. Institutional investors own 92.73% of the company’s stock.

RXO Stock Down 4.8%

The company has a quick ratio of 1.32, a current ratio of 1.27 and a debt-to-equity ratio of 0.25. The stock has a market cap of $2.64 billion, a P/E ratio of -27.74, a P/E/G ratio of 10.22 and a beta of 1.73. The company’s 50 day moving average price is $14.48 and its two-hundred day moving average price is $15.16.

About RXO

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.