In a recent special meeting, the shareholders of RXO, Inc., a company in the transportation services industry with a market capitalization of $4.56 billion, approved the issuance of common stock upon the exercise of pre-funded warrants. The meeting, held on Thursday, witnessed a significant turnout with over 84% of the eligible shares represented.
The proposal, which involved the issuance of shares upon the exercise of warrants for 3,700,718 shares of common stock, received overwhelming support from the shareholders. The final vote count was 135,614,253 for, 79,337 against, and 27,707 abstentions. This approval reflects the shareholder's confidence in the company's strategic decisions, coming at a time when InvestingPro data shows the stock has gained over 38% in the past six months.
In other recent news, RXO Inc. has experienced significant developments. The company reported strong third-quarter results, with a revenue of $1.04 billion and an adjusted EBITDA of $33 million, surpassing Stifel's estimate. Additionally, RXO recently finalized the acquisition of Coyote for $1.025 billion, positioning it as the third-largest freight brokerage firm. Analysts at Goldman Sachs have resumed coverage on RXO, assigning a Neutral rating and a price target of $29.00.
Similarly, Citi downgraded RXO's stock from a "Buy" to a "Neutral" stance, setting a new price target of $33.00, while Stifel revised its price target for RXO to $26 from the previous $28, maintaining a Hold rating. Both firms plan to closely monitor RXO's performance, particularly in realizing synergies from the acquisition and generating sustained levels of free cash flow.
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