Citigroup has recently initiated XPO Inc (XPO) stock to Buy rating, as announced on October 9, 2024, according to Finviz. Earlier, on June 7, 2024, Wells Fargo had initiated the stock to Overweight, setting a price target of $125. Stifel also raised Buy rating with a price target of $120. Additionally, TD Cowen reiterated Buy rating on May 6, 2024, with a target price of $138. TD Cowen analysts, in their report published on March 7, 2024, also reiterated Outperform rating and set a price target of $136 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 Friday, XPO Inc (XPO) stock saw a decline, ending the day at $130.19 which represents a decrease of $-0.34 or -0.26% from the prior close of $130.53. The stock opened at $131.81 and touched a low of $129.85 during the day, reaching a high of $132.04. The volume of shares traded was 0.86 million falling short of the average volume of 1.50 million.
XPO Stock Performance and Moving Averages
In recent trading, XPO Inc (XPO) stock price has shown some volatility, fluctuating 10.61% over the last five trades and 22.88% 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 15.66%, and it has gained 21.54% in the previous three months. Currently, XPO is trading at 12.30%, 15.36%, and 15.75% 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 -6.14% below its 52-week high but remains 72.47% above its 52-week low. The Average True Range (ATR) (14 days) of 4.62 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 8.75% and a profit margin of 4.57%, with a gross margin of 15.66%. 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 $15.15 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 42.22, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 29.46. Additionally, the Price-to-Sales Ratio is 1.87, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 9.23, 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 97.09%.
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.
