Wells Fargo Reduces Price Target for RXO

RXO (NYSE:RXO) saw a decrease in its price target from Wells Fargo & Company, which announced the new target of $20.00 in a research note published on Thursday. This target reflects a decline from their previous projection of $22.00. Wells Fargo has maintained an "equal weight" rating on RXO's stock, indicating that they believe the stock's current price is fair compared to its peers.

The newly set price target suggests a potential upside of approximately 5.03% from RXO's recent trading price, offering some optimism to investors.

Other Analysts' Opinions on RXO

In addition to Wells Fargo's update, multiple other financial institutions have also reassessed their price targets for RXO. On February 6th, Morgan Stanley lowered its target for RXO shares from $27.00 to $25.00, while maintaining an "equal weight" rating. Stifel Nicolaus similarly adjusted their estimate from $27.00 to $24.00 with a "hold" rating.

Previously, Jefferies Financial Group had set a target price of $30.00 after decreasing it from $33.00 on January 10th, rating the stock as a "buy." Deutsche Bank initiated coverage on RXO with a "hold" rating and a price target of $19.00, and Susquehanna reduced their target from $18.00 to $13.00, marking a shift to a "negative" outlook.

In total, the ratings for RXO are as follows: two analysts have given a sell rating, eleven have a hold rating, and four have assigned a buy rating, leading to an average rating of "Hold" and an average price target of $25.33, according to MarketBeat.com.

Current Stock Performance

As of Thursday, RXO shares opened at $19.04. The stock has experienced a low of $17.50 and a high of $32.82 over the past year. Financial metrics show a quick ratio of 1.33 and a current ratio of 1.26, with a debt-to-equity ratio of 0.22. RXO has a market capitalization of around $3.11 billion, a price-to-earnings (PE) ratio of -8.98, and a beta of 1.67. Its 50-day and 200-day simple moving averages are $21.56 and $25.29, respectively.

Company Overview and Institutional Holdings

RXO, Inc provides full truckload freight transportation brokering services. Established in 2022 and headquartered in Charlotte, North Carolina, the company also offers managed transportation, last-mile deliveries, and freight forwarding services.

On the institutional trading front, several hedge funds have altered their holdings in RXO. Recently, the Oregon Public Employees Retirement Fund increased its stake by 1.5%, owning a total of 32,863 shares. Other significant changes include Blue Trust Inc., which boosted its shares by 79.7%, and Commonwealth of Pennsylvania Public School Employees Retirement System, which raised its ownership by 1.8% during the fourth quarter.

Conclusion and Future Outlook

The adjustments by Wells Fargo and other financial analysts reflect a cautious sentiment towards RXO's stock among market participants. With upcoming quarterly earnings reports and the potential for economic shifts, investors will be closely watching how RXO performs in the near future.

RXO, WellsFargo, Stocks