Wells Fargo has recently initiated XPO Inc (XPO) stock to Overweight rating, as announced on June 7, 2024, according to Finviz. Earlier, on May 24, 2024, Stifel had raised the stock from a Hold to Buy, setting a price target of $120 for XPO stock. TD Cowen also reiterated Buy rating with a price target of $138. Additionally, TD Cowen reiterated Outperform rating on March 7, 2024, with a target price of $136. Morgan Stanley analysts, in their report published on February 12, 2024, also reduced their rating and set a price target of $80 for XPO Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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XPO Inc (XPO) Stock Trading Recap
On Wednesday, XPO Inc (XPO) stock saw a modest uptick, ending the day at $107.45 which represents a slight increase of $1.08 or 1.02% from the prior close of $106.37. The stock opened at $106.16 and touched a low of $105.63 during the day, reaching a high of $108.08. The volume of shares traded was 1.50 million falling short of the average volume of 1.51 million.
XPO Stock Performance and Moving Averages
In recent trading, XPO Inc (XPO) stock price has shown some volatility, fluctuating -5.63% over the last five trades and -4.67% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -13.14%, and it has gained 0.33% in the previous three months. Currently, XPO is trading at -1.38%, -4.77%, and -1.54% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, XPO, a Industrials sector stock, is trading -17.67% below its 52-week high but remains 63.30% above its 52-week low. The Average True Range (ATR) (14 days) of 4.14 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
XPO Inc’s Profitability and Valuation Ratios
XPO Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 8.48% and a profit margin of 4.48%, with a gross margin of -13.14%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, XPO Inc’s market capitalization stands at $12.51 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 35.85, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 23.69. Additionally, the Price-to-Sales Ratio is 1.56, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 8.34, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 1.96% of XPO Inc (XPO)’s shares, while financial institutions hold 97.01%.
Notable insider trades include Landry Allison, Director at XPO Inc (XPO), who sold 1875 shares on May 23 ’24, at $104.52 each, totaling $0.20 million. On May 15 ’24, MFN Partners, LP, 10% Owner, sold 1250000 shares for $112.98 each, amounting to $141.22 million. Additionally, on Dec 31 ’23, Harik Mario A sold 9383 shares at $87.59 each, generating $0.82 million.
