Stock in XPO dropped 9.6 percent to $60.28 per share on Wednesday, the day after the SEC filing, and was down another 17 percent to under $50 by midday Thursday.
“Before, when the market was bullish, news like this wouldn’t affect it,” he said. “Now the market is skittish and news is affecting it.”
It’s been a rough couple of months for XPO, with federal lawmakers earlier this month calling for an investigation into alleged “disturbing treatment” of employees at company-operated warehouses following reports from The New York Times and Los Angeles Times of pregnancy discrimination, sexual harassment and unsafe working conditions.
Shares in the company have taken a serious beating in the fourth quarter of 2018, losing nearly half their value since closing at $114.47 on Sep. 28.
Seemingly unrelated to the lowering of the company’s internal earnings expectations, investment firm Spruce Point Capital on Thursday released a scathing report in which it downgraded XPO’s stock rating to a “strong sell” and suggested a price target of $24 to $36. The report cited “a $4.7 billion debt overhang, flawed business model, questionable governance, dubious financial and accounting methods, increased regulatory scrutiny, and a loss of confidence in management” as the primary reasons for the downgrade.