One of RXO, Inc.’s (NYSE:RXO) more-than-10% owners, MFN Partners, LP, has been actively purchasing RXO stock. The insider’s purchases total $25.13 million over the past week alone, reflecting potential confidence in RXO’s future growth trajectory.
RXO provides asset-light transportation solutions. It also offers freight forwarding and last-mile delivery services.
A Closer Look at Insider’s Transactions
As per the SEC filing, the insider bought 1.251 million shares of the company between April 17 and April 19, for a total value of $24.31 million. Before this, the insider had purchased 41,124 shares on April 12 and April 16 for about $832,400.
Furthermore, MFN Partners bought RXO stock worth $37.88 million and $15.14 million on February 12 and February 6, 2024, respectively.
The total value of RXO stock in MFN Partners’ portfolio currently stands at $326.88 million. Interestingly, the insider’s performance track record shows a 27% success rate over the past year but has been able to generate an average return of 15.6% per transaction.
Investors may benefit from keeping an eye on transactions made by key insiders, as these transactions typically reflect their confidence in the company’s prospects. Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Is RXO Stock a Good Buy?
RXO’s gross margin has remained under pressure due to persistent price declines in the Truck Brokerage segment. Nevertheless, the positive volume trends in 2024 are expected to partially mitigate this impact by bolstering the company’s top line.
Overall, on TipRanks, RXO has a Hold consensus rating based on three Buy, seven Hold, and two Sell recommendations assigned in the past three months. The average RXO stock price target of $20.59 implies 6.3% upside potential from current levels. Shares of the company have declined by over 15% in the past three months.
