What is causing the -9.78% decline in shares of GXO Logistics Inc (GXO) over the past six months? – BOVNews

Wells Fargo recently initiated the rating of GXO Logistics Inc (GXO) stock to Overweight as announced on Jun 7, 2024 according to Finviz. Previously, on April 25, 2024, TD Cowen reiterated the stock to Buy, setting a price target of $80. for GXO stock. Exane BNP Paribas also raised the neutral rating with a price target of $50. Additionally, TD Cowen reiterated an Outperform rating on February 15, 2024 with a price target of $78. TD Cowen analysts also reiterated an Outperform rating and set a $72 price target on shares of GXO Logistics Inc in their published report. Analyst ratings are significant because they provide information about stock performance expectations, influencing investor decisions and market sentiment.

GXO Logistics Inc (GXO) Stock Trading Summary

Shares of GXO Logistics Inc (GXO) saw modest gains on Wednesday to end the day at $48.32, up a slight $0.27 or 0.56% from its previous close of $48.05. The stock opened at $48.59 and touched an intraday low of $48.12 before reaching a high of $49.15. The volume of traded shares was 0.83 million, being below the average volume of 0.86 million.

GXO stock performance and moving averages

In recent trades, GXO Logistics Inc (GXO) stock price has shown some volatility, moving 3.12% in last five trades and -10.83% in last 30 trades. This represents a notable change from the beginning of the year. Over the past six months, the stock has risen -9.78% and has fallen -9.07% over the past three months. GXO is currently trading -4.43%, -4.31%, and -9.00% from its 20-day, 50-day, and 200-day simple moving averages, respectively.

As of the most recent trade close, GXO, an Industrials sector stock, is trading -26.21% below its 52-week high, but remains 4.88% above its 52-week low. The Average True Range (ATR) (14 days) of 1.77 highlights the stock’s average volatility, giving insight into how much the price typically fluctuates. This measure is crucial for understanding potential price fluctuations and assessing overall market risk.

GXO Logistics Inc. Profitability and Valuation Report

GXO Logistics Inc’s profitability figures reveal strong financial health. The company currently boasts an operating margin of 3.35% and a profit margin of 1.35%, with a gross margin of -9.78%. Profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate higher profitability.

In terms of valuation, GXO Logistics Inc’s market cap is $5.77 billion. Market capitalization represents the total value of all shares outstanding and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 41.34, evaluating the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 14.52. Additionally, price-to-sales ratio is 0.56, reflecting the market valuation of the company’s sales, while price-to-sales ratio is 1.99, comparing the market value to the book value of the company.

Understanding insider trading

Investors often prefer to invest in stocks owned by company insiders because management is usually more aligned with the company’s success and shareholder interests. Insiders currently own only 2.04% of GXO Logistics Inc (GXO) shares, while financial institutions own 97.01%.

Notable insider trades include Ashe Gena L, Director at GXO Logistics Inc (GXO) who sold 13370 shares on Mar 8 ’24 at $50 each, totaling $0.67M. On Mar 7 ’24, Ashe Gena L, Director sold 4737 shares at $50 each, worth $0.24M. Additionally, on Jan 3, 24, Ashe Gena L sold 10526 shares at $58.15 each, generating $0.61M.