Insider Buy - RXO Inc (RXO)

Background

RXO Inc (RXO) was founded in 2022 and headquartered in Charlotte, North Carolina, specializing in full truckload freight transportation brokering services. It operates as a spin-off from XPO, a transportation conglomerate, and is one of the largest brokers of full truckload transportation in the U.S. The company's business model is asset-light and utilizes proprietary technology to connect shippers with approximately 100,000 independent carriers. RXO, led by CEO Drew M. Wilkerson, employs around 8,590 people and serves a wide range of clients, including over half of the Fortune 100 companies.

Insiders Who Are Buying

• 11/21/2023 11/16/2023 11/13/2023 - MFN Partners (10% Owner) purchased ~330,000 shares at $19 (~$650k total value).

  • This represents a ~2% increase in his holdings.

• 11/17/2023 - Christine Breves (Director) purchased 5,100 shares at $19.90 ($101,490 total value).

  • This represents a 276% increase in his holdings

• 11/09/2023 - Stephen Renna (Director) purchased 3,548 shares at $17.59 ($29,903 total value).

  • This represents a 92% increase in his holdings.

• 11/09/2023 - Andrew Wilkerson (CEO) purchased 8,570 shares at $17.63 ($151,089 total value).

  • This represents a 16% increase in his holdings.

• 09/15/2023 - Thomas Szlosek (Director) purchased 11,186 shares at $17.92 ($200,453 total value).

  • This represents a 605% increase in his holdings.

Here is a quick overview of RXO and the industry:

• Current Performance: RXO faced a 21.45% year-over-year drop in revenues in Q2-2023, with revenues amounting to $963 million. Despite a decline in adjusted EBITDA by 62% to $38 million and a decrease in GAAP net profit to $3 million, the company remains resilient with a nearly 19% gross margin and a 10% rise in core truck brokerage volume year-over-year.

• Market Dynamics: The truckload brokerage industry is under pressure due to economic headwinds, but RXO demonstrates adaptability with modest growth in retail and e-commerce volumes and a steady truckload revenue per load since July 2022.

• Financial Health: RXO, facing a complex economic environment, maintains a robust balance sheet with free cash flows of $38 million and a liquidity of $624 million.

We believe this may be a stock worth keeping an eye on, given the recent insider clustery buy activity.

Insider Sell - Palantir Technologies (PLTR)

Background

Palantir Technologies (PLTR) founded in 2003 and headquartered in Denver, Colorado, specializes in big data analytics. The company is known for two primary software platforms: Palantir Gotham, used primarily by government agencies, and Palantir Foundry, geared towards private sector clients. Palantir's platforms enable organizations to integrate, manage, and secure vast amounts of data, and they are used for a wide range of applications, including counter-terrorism analysis and data-driven decision-making.

Insiders Who Are Selling

11/20/2023 - David Glazer (CFO & Treasurer) sold $7.6mm of stock at a share price of $20.23, representing 99% of his current holdings. These sales were all conducted in compliance with a 10b5-1 trading plan. One of the plans were adopted in March 12, 2023

11/20/2023 - Ryan Taylor (Chief Revenue Officer and Chief Legal Officer) sold $2.5mm of stock at a share price of $20.84, representing 37% of his current holdings. These sales were all conducted in compliance with a 10b5-1 trading plan and represents an automatic sale of shares to cover required tax withholding obligations.

11/20/2023 - Heather Planishek (Chief Accounting Officer) sold $460k of stock at a share price of $20.84, representing 3% of her current holdings. These sales were all conducted in compliance with a 10b5-1 trading plan and represents an automatic sale of shares to cover required tax withholding obligations

The one to watch out for is David Glazer given he reduced 99% of his ownership as the CFO of the company. This could signal that David may be stepping down or that he may receive a stock option refresh in the near future. Something to keep an eye on as Palantir stock has risen over the last year.