What Happened?
Shares of freight delivery company XPO (NYSE: XPO) fell 6% in the morning session after Susquehanna downgraded the stock to Neutral from a previous Positive rating. The analyst firm set a price target of $210.00 on the shares. The change in rating from a positive outlook to a neutral one signaled a more cautious view from the analyst on the company's near-term prospects, which appeared to influence investor sentiment.
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What Is The Market Telling Us
XPO’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock dropped 9.1% on the news that the company reported disappointing second-quarter financial results that revealed a significant drop in profitability. Although revenue held flat at $2.08 billion, investors focused on the sharp decline in net income, which fell to $106 million from $150 million a year earlier. Earnings per share also dropped significantly to $0.89 from $1.25. The company’s main North American Less-Than-Truckload (LTL) division experienced a 2.5% revenue decrease. More critically, tonnage per day in this segment plunged by 6.7%, and daily shipments fell 5.1%, signaling weakness in what the company's CEO called a soft freight environment.
XPO is up 35.8% since the beginning of the year, and at $188.51 per share, it is trading close to its 52-week high of $206.86 from February 2026. Investors who bought $1,000 worth of XPO’s shares 5 years ago would now be looking at an investment worth $1,554.
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