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). The firm had revenue of $1.47 billion during the quarter, compared to analysts’ expectations of $1.50 billion. RXO had a negative net margin of 1.25% and a positive return on equity of 0.88%. The company’s revenue was down 11.9% compared to the same quarter last year. During the same period in the prior year, the company posted $0.06 EPS.

More RXO News

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

Wall Street Analyst Weigh In

RXO has been the topic of a number of analyst reports. Zacks Research cut RXO from a “hold” rating to a “strong sell” rating in a research note on Friday, January 9th. Wall Street Zen lowered shares of RXO from a “hold” rating to a “sell” rating in a report on Saturday, November 8th. Truist Financial reduced their price objective on RXO from $20.00 to $18.00 and set a “buy” rating on the stock in a report on Thursday, January 15th. 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 note on Tuesday, November 11th. Finally, Citigroup cut their target price on shares of RXO from $16.00 to $15.00 and set a “neutral” rating on the stock in a research report on Thursday, January 8th. Four investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $16.07.

Insiders Place Their Bets

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

Hedge Funds Weigh In On RXO

Several institutional investors and hedge funds have recently modified their holdings of the business. Flagship Harbor Advisors LLC acquired a new stake in RXO in the fourth quarter valued at approximately $25,000. AlphaQuest LLC purchased a new position in shares of RXO during the 2nd quarter valued at approximately $29,000. Geneos Wealth Management Inc. acquired a new stake in RXO in the 1st quarter valued at $30,000. Quarry LP purchased a new stake in RXO in the 3rd quarter worth $33,000. Finally, Larson Financial Group LLC raised its position in 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. Hedge funds and other institutional investors own 92.73% of the company’s stock.

RXO Price Performance

The stock’s 50-day simple moving average is $14.42 and its two-hundred day simple moving average is $15.18. The company has a quick ratio of 1.32, a current ratio of 1.32 and a debt-to-equity ratio of 0.24. The company has a market capitalization of $2.78 billion, a price-to-earnings ratio of -29.17, a PEG ratio of 8.26 and a beta of 1.74.

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.