GXO Logistics Inc. (NYSE: GXO) stock fell -3.89% on Tuesday to $52.38 against a previous-day closing price of $54.50. With 0.84 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.06 million shares. During the session, the Integrated Freight & Logistics company that operates in wider Industrials sector, reached to the highest price of $54.98 whereas the lowest price it dropped to was $52.08. The 52-week range on GXO shows that it touched its highest point at $88.05 and its lowest point at $32.10 during that stretch. It currently has a 1-year price target of $59.19.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of GXO was down-trending over the past week, with a drop of -0.30%, but this was up by 20.97% over a month. Three-month performance surged to 54.51% while six-month performance rose 19.18%. The stock lost -38.10% in the past year, while it has gained 22.70% so far this year. A look at the trailing 12-month EPS for GXO yields 1.78 with Next year EPS estimates of 2.42. For the next quarter, that number is 0.75. This implies an EPS growth rate of 589.30% for this year and -11.38% for next year.
Float and Shares Shorts:
At present, 118.62 million GXO shares are outstanding with a float of 117.97 million shares on hand for trading. On Oct 13, 2022, short shares totaled 3.61 million, which was 3.04% higher than short shares on Sep 14, 2022. In addition to Mr. Malcolm Wilson as the firm’s CEO & Director, Mr. Baris Oran serves as its Chief Financial Officer.
Through their ownership of 90.92% of GXO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 48.71% of GXO, in contrast to 43.12% held by mutual funds. Shares owned by individuals account for 10.64%. As the largest shareholder in GXO with 11.63% of the stake, Orbis Investment Management Ltd. holds 13,795,945 shares worth 13,795,945. A second-largest stockholder of GXO, The Vanguard Group, Inc., holds 10,639,357 shares, controlling over 8.97% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in GXO, holding 8,906,733 shares or 7.51% stake. With a 3.09% stake in GXO, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 3,660,243 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 3.04% of GXO stock, is the second-largest Mutual Fund holder. It holds 3,603,587 shares valued at 153.84 million. Vanguard Small Cap Index Fund holds 2.58% of the stake in GXO, owning 3,056,956 shares worth 130.5 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for GXO since 18 analysts follow the stock currently. There are 14 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With GXO analysts setting a high price target of $74.00 and a low target of $40.00, the average target price over the next 12 months is $59.06. Based on these targets, GXO could surge 41.28% to reach the target high and fall by -23.63% to reach the target low. Reaching the average price target will result in a growth of 12.75% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. GXO will report FY 2022 earnings on 02/13/2024. Analysts have provided yearly estimates in a range of $2.88 being high and $2.70 being low. For GXO, this leads to a yearly average estimate of $2.76. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. GXO Logistics Inc. surprised analysts by $0.05 when it reported $0.75 EPS against a consensus estimate of $0.70. The surprise factor in the prior quarter was $0.06. Based on analyst estimates, the high estimate for the next quarter is $0.86 and the low estimate is $0.69. The average estimate for the next quarter is thus $0.75.
Summary of Insider Activity:
Insiders traded GXO stock several times over the past three months with 8 Buys and 4 Sells. In these transactions, 43,444 shares were bought while 15,397 shares were sold. The number of buy transactions has increased to 18 while that of sell transactions has risen to 19 over the past year. The total number of shares bought during that period was 90,248 while 16,109,357 shares were sold.