RXO (NYSE:RXO) Trading Down 5.2% Following Weak Earnings

Rxo Inc (NYSE:RXO) shares dropped 5.2% during trading on Monday following a dissappointing earnings announcement. The stock traded as low as $15.96 and last traded at $16.0150. Approximately 866,270 shares changed hands 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 (EPS) for the quarter, missing analysts’ consensus estimates of ($0.04) by ($0.03). RXO had a negative net margin of 1.74% and a negative return on equity of 0.44%. The business had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.50 billion. During the same quarter last year, the business earned $0.06 EPS. The firm’s quarterly revenue was down 11.9% compared to the same quarter last year.

Key Stories Impacting RXO

Here are the key news stories impacting RXO this week:

• Positive Sentiment: Investors reacted to headlines tying an asset-based credit deal and impairment clarity to improved near-term liquidity and margin prospects — a note summarizing those developments says RXO jumped ~9% on the news. Why RXO Is Up 9.1%
• Positive Sentiment: Truist raised its price target to $20 and assigned a Buy rating, signaling analysts see meaningful upside versus recent levels and providing fresh buy-side momentum. Truist PT Raise
• Positive Sentiment: Coverage highlighting recent AI and capacity shifts frames a longer‑term operational improvement story for RXO, which may support rerating if execution follows. AI & Capacity Shifts
• Positive Sentiment: Technical/market-strength indicators improved — RXO’s relative strength reading rose to 74, which can attract momentum traders. Relative Strength
• Neutral Sentiment: RXO filed a private offering to issue $400 million of senior notes due 2031 — expands liquidity and capital options but increases long‑term leverage; market impact depends on use of proceeds and covenant terms. Senior Notes Offering
• Neutral Sentiment: Wells Fargo reaffirmed a Hold rating on RXO, and several brokerages’ consensus remains “Hold,” keeping analyst coverage balanced rather than uniformly bullish. Wells Fargo Hold
• Neutral Sentiment: Citigroup nudged its target to $18 and kept a Neutral rating — a modestly constructive signal but not a clear buy endorsement. Citigroup PT Raise
• Negative Sentiment: Analysts and commentary continue to flag weak Q4 results and margin pressure; valuation checks emphasize that near‑term earnings remain under strain until volumes/margins recover. Valuation After Weak Q4

Analysts Set New Price Targets

Several research analysts recently issued reports on RXO shares. Susquehanna raised their target price on RXO from $10.00 to $11.00 and gave the stock a “negative” rating in a research report on Thursday, January 8th. Morgan Stanley raised RXO from an “equal weight” rating to an “overweight” rating and set a $19.00 price target for the company in a research note on Tuesday, November 11th. Weiss Ratings restated a “sell (d-)” rating on shares of RXO in a research report on Monday, December 22nd. Barclays cut their price objective on RXO from $17.00 to $15.00 and set an “overweight” rating on the stock in a research note on Friday, November 7th. Finally, Wall Street Zen cut RXO from a “hold” rating to a “sell” rating in a report on Saturday, November 8th. Four equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $16.33.

Insider Activity

In other RXO news, Director Troy A. Cooper bought 8,317 shares of the business’s stock in a transaction that occurred on Thursday, November 20th. The shares were bought at an average price of $10.61 per share, for a total transaction of $88,243.37. Following the transaction, the director directly owned 275,416 shares in the company, valued at approximately $2,922,163.76. This trade represents a 3.11% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.48% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On RXO

Institutional investors have recently added to or reduced their stakes in the business. Flagship Harbor Advisors LLC acquired a new stake in shares of RXO during the 4th quarter worth approximately $25,000. AlphaQuest LLC acquired a new position in shares of RXO during the 2nd quarter valued at $29,000. Geneos Wealth Management Inc. bought a new position in RXO during the first quarter worth $30,000. Quarry LP acquired a new stake in RXO in the third quarter worth $33,000. Finally, Larson Financial Group LLC increased its stake in RXO by 146.5% in the third quarter. Larson Financial Group LLC now owns 2,766 shares of the company’s stock valued at $43,000 after purchasing an additional 1,644 shares in the last quarter. 92.73% of the stock is owned by institutional investors and hedge funds.

RXO Trading Up 1.9%

The firm’s 50 day simple moving average is $14.54 and its two-hundred day simple moving average is $15.16. The stock has a market capitalization of $2.68 billion, a P/E ratio of -28.21, a P/E/G ratio of 11.24 and a beta of 1.74. The company has a quick ratio of 1.32, a current ratio of 1.27 and a debt-to-equity ratio of 0.25.

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.