Technicals Say XPO Logistics Inc. (XPO) Is Worth Holding


As of Friday close, XPO Logistics Inc.’s (NYSE:XPO) stock was down -$1.4, moving down -4.21 percent to $31.87. The average number of shares traded per day over the past five days has been 2,129,400 shares. 2 times new highs have been achieved over the past 5 days, with a -$2.78 fall in that time frame. In the last twenty days, the average volume was 1,770,380, while in the previous 50 days, it was 1,776,438.

Since last month, XPO stock retreated -15.60%. Shares of the company fell to $31.57 on 03/15/23, the lowest level in the past month. A 52-week high of $47.31 was reached on 02/08/23 after having rallying from a 52-week low of $24.75. Since the beginning of this year, XPO’s stock price has dropped by -4.27% or -$1.42, and marked a new high 11 times. However, the stock has declined by -32.64% since its 52-week high.

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XPO stock investors should be aware that XPO Logistics Inc. (XPO) stock had its last reported insider trading activity 8 days ago on Mar 10. FRYE J WES, the Director of the company, purchased of 1,500 shares for $35.74 on Mar 10. It resulted in a $53,610 investment by the insider. BRADLEY S JACOBS sold 5,061,029 shares at an average price of $55.17 on Aug 11. The insider now owns 1,300,701 shares following the transaction. On Jul 20, Chief Executive Officer BRADLEY S JACOBS sold 50,000 shares at $53.49 apiece. The transaction was valued at $2,674,338.

Valuation Metrics

Right now, XPO Logistics Inc. (XPO) has a P/E ratio of about 20.09. The stock’s beta is 2.19. Besides these, the trailing price-to-sales (P/S) ratio of 0.49, the price-to-book (PB) ratio of 3.62, and the price-to-cash flow ratio of 12.20 may also be considered.

Financial Health

In the three months ended December 30, XPO Logistics Inc.’s quick ratio stood at 1.10, while its current ratio was 1.10, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending December 30 was 2.44, and the total debt-to-equity ratio was 2.50. On the profitability front, the trailing twelve-month gross margin is 35.90% percent. In the year ended December 30, operating margins totaled 4.40%. Based on annual data, XPO earned $1.62 billion in gross profit and brought in $7.72 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 7.40%. Return on equity (ROE) for the past 12 months was 43.70%.

In XPO Logistics Inc.’s quarter-end financial report for December 30, it reported total debt of $2.85 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. XPO’s revenue rose 100.03% to $3.04 billion during the quarter, while net income inched up to -$9.75 trillion. While analysts expected XPO Logistics Inc. to report $0.85 quarterly earnings, the actual figure was $0.98 per share, beating the consensus estimate by 15.30%. During the quarter, the company generated -$620.0 million in EBITDA. The liabilities of XPO Logistics Inc. were 5.26 billion at the end of its most recent quarter ended December 30, and its total debt was $3.26 billion. The value of shareholders’ equity is $115.5 million.

Technical Picture

This quick technical analysis looks at XPO Logistics Inc.’s (XPO) price momentum. With a historical volatility rate of 42.46%, the RSI 9-day stood at 30.61% on 17 March.

With respect to its five-day moving average, the current XPO Logistics Inc. price is down by -8.02% percent or -$2.78. At present, XPO shares trade -15.17% below its 20-day simple moving average and +18.42% percent above its 100-day simple moving average. However, the stock is currently trading approximately -4.58% below its SMA50 and +1.38% above its SMA200.

Stochastic coefficient K was 17.27% and Stochastic coefficient D was 15.92%, while ATR was 1.66. Given the Stochastic reading of 4.55% for the 14-day period, the RSI (14) reading has been calculated as 35.35%. As of today, the MACD Oscillator reading stands at -1.13, while the 14-day reading stands at -1.71.

Analyst Ratings

XPO Logistics Inc. downgraded its rating on XPO Logistics Inc. (NYSE: XPO) to an In-line in a note to investors on February 14, 2023. The analysts firm previously had an Outperform rating on the stock.XPO Logistics Inc. (XPO) has been rated Overweight by analysts. According to 0 brokerage firms, XPO is a sell, and 8 firms recommend it is a Hold. There are 1 analyst who say the stock is underweight. A total of 3 analysts rate XPO Logistics Inc. stock as buy, with 11 recommending it as overweight.


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