RXO (NYSE:RXO) Shares Gap Up – Time to Buy?

Shares of Rxo Inc (NYSE:RXO) gapped up prior to trading on Monday. The stock had previously closed at $23.38, but opened at $29.00. RXO shares last traded at $28.8420, with a volume of 3,001,485 shares traded.

Trending Headlines about RXO

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

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on the stock. Susquehanna raised shares of RXO from a “negative” rating to a “neutral” rating and cut their target price for the company from $20.00 to $19.00 in a research note on Wednesday, September 23rd. 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 note on Monday. The Goldman Sachs Group increased their price objective on shares of RXO from $18.00 to $20.00 and gave the company a “neutral” rating in a report on Thursday, July 16th. Benchmark restated a “hold” rating on shares of RXO in a research report on Tuesday, July 28th. Finally, Stephens raised RXO to a “hold” rating in a report on Wednesday, July 8th. Four research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $25.97.

RXO Stock Performance

The business’s fifty day moving average is $21.29 and its two-hundred day moving average is $22.03. The stock has a market capitalization of $4.70 billion, a PE 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 (NYSE:RXO) last released its quarterly 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. RXO had a negative net margin of 1.72% and a negative return on equity of 0.98%. The company had revenue of $1.77 billion for the quarter, compared to the consensus estimate of $1.63 billion. During the same quarter in the prior year, the firm earned $0.04 earnings per share. RXO’s revenue was up 25.0% on a year-over-year basis. As a group, research analysts anticipate that Rxo Inc will post 0.14 EPS for the current fiscal year.

Institutional Investors Weigh In On RXO

Several institutional investors have recently made changes to their positions in the company. Public Employees Retirement System of Ohio grew its position in shares of RXO by 18.3% in the 1st quarter. Public Employees Retirement System of Ohio now owns 4,196 shares of the company’s stock worth $61,000 after buying an additional 649 shares during the last quarter. City Holding Co. boosted its stake in RXO by 227.6% in the second quarter. City Holding Co. now owns 1,245 shares of the company’s stock valued at $34,000 after acquiring an additional 865 shares in the last quarter. GAMMA Investing LLC boosted its stake in RXO by 11.5% in the second quarter. GAMMA Investing LLC now owns 9,650 shares of the company’s stock valued at $266,000 after acquiring an additional 996 shares in the last quarter. Citizens Financial Group Inc. RI grew its holdings in RXO by 5.0% in the first quarter. Citizens Financial Group Inc. RI now owns 24,583 shares of the company’s stock worth $359,000 after purchasing an additional 1,165 shares during the last quarter. Finally, X Square Capital LLC increased its position in shares of RXO by 12.1% during the fourth quarter. X Square Capital LLC now owns 16,911 shares of the company’s stock worth $214,000 after purchasing an additional 1,832 shares in the last quarter. Institutional investors own 92.73% of the company’s stock.

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.