XPO authorizes $750 million stock buyback plan

GREENWICH, Conn. - XPO Logistics, Inc. (NYSE: XPO), a prominent North American freight transportation company with a market capitalization of $13 billion, unveiled a new share repurchase program today, permitting the buyback of up to $750 million of its common stock. This initiative supersedes the previous plan from February 2019, which had approximately $503 million remaining as of yesterday. According to InvestingPro data, the stock currently appears overvalued relative to its Fair Value, with analysts maintaining a bullish consensus and a potential upside of 39%.

The company’s Board of Directors has given the green light for the repurchase to commence immediately, allowing for stock to be bought back at management’s discretion through various methods. These include open market purchases, privately negotiated transactions, and any other means compliant with Rule 10b-18 under the Securities Exchange Act of 1934.

XPO’s management will decide the timing and volume of the repurchases based on a range of factors, such as stock price, market conditions, and other investment opportunities. The repurchase plan does not commit XPO to a specific number of shares and can be halted or discontinued at any time. The stock has shown significant volatility recently, with a beta of 1.98 and a 15.5% decline year-to-date, potentially creating opportunities for the buyback program.

XPO Logistics specializes in asset-based less-than-truckload (LTL) freight transportation and is known for moving a substantial volume of freight annually with its technology-driven services. The company serves around 55,000 customers, operates 614 locations, and employs 38,000 people across North America and Europe. InvestingPro analysis reveals the company maintains a "Fair" overall financial health score, with strong profitability metrics including a 17.4% gross margin and $1.2 billion in EBITDA over the last twelve months. For deeper insights into XPO’s financial performance and future prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

This announcement is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. These statements are not guarantees of future performance and actual results could differ materially due to various factors, some of which have been outlined in XPO’s filings with the SEC. The company cautions that its February 2025 operating results should not be viewed as indicative of future outcomes. With XPO’s next earnings report due on May 2, 2025, investors can access detailed analysis and forecasts through InvestingPro, which offers exclusive insights and 10+ additional ProTips about the company’s financial outlook.

In other recent news, XPO Inc. has reported its fourth-quarter earnings for 2024, revealing an adjusted earnings per share (EPS) of $0.89, significantly surpassing the forecast of $0.6556. Despite a slight miss on revenue expectations, with $1.9 billion against a forecast of $1.93 billion, the company noted a 31% increase in full-year adjusted EPS and a 27% rise in adjusted EBITDA. Additionally, XPO Inc. authorized a $750 million stock buyback plan, replacing the previous program, which had $503 million remaining. Analyst opinions on XPO have varied, with Citi adjusting its price target to $148 from $170 while maintaining a Buy rating, citing a slight decline in daily tonnage. Conversely, Stifel upgraded XPO’s stock rating from Hold to Buy, setting a price target of $147, reflecting confidence in the company’s strategic execution. Benchmark also raised its price target to $160, maintaining a Buy rating, highlighting the company’s operational improvements. These developments underscore XPO’s ongoing efforts to enhance shareholder value and operational efficiency.

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