TD Cowen analyst Jason Seidl has reiterated their neutral stance on RXO stock, giving a Hold rating on July 30.
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Jason Seidl has given his Hold rating due to a combination of factors influencing RXO, Inc.’s current performance and future outlook. The company reported better-than-expected results in the second quarter, with strong performance in the Less-Than-Truckload (LTL) and Last Mile segments, although Truckload (TL) volumes showed a decline. The guidance for the third quarter suggests a similar performance without any anticipated volume improvement, and the uncertainty surrounding the peak season adds to the cautious outlook.
Additionally, while the integration of Coyote is progressing, its impact on profitability is not yet visible. The company’s gross margin exceeded expectations, driven by the TL and Other segments, but the ongoing challenges in the TL brokerage volumes, particularly due to auto exposure, are expected to persist. The management’s cautious approach to the seasonal uptick in the fourth quarter and the early stages of synergies from Coyote’s integration contribute to the Hold rating, as these factors indicate a balanced risk-reward scenario for investors.
In another report released on July 30, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $16.50 price target.
Based on the recent corporate insider activity of 29 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of RXO in relation to earlier this year.