XPO Logistics stock logs worst day ever on short-seller repor

XPO Logistics Inc. XPO, -26.17% shares shed more than a quarter of their value for their worst day ever Thursday after a noted short seller said the transportation and logistics company was using dubious accounting practices to cover up financial problems. XPO shares fell 26% to close at $44.50, their lowest close in nearly two years. On Thursday, Spruce Point Capital Management cited "financial irregularities" at XPO that it believes are covering up growth problems at the company. "Given its unreliable and dubious financials, $4.7 billion debt burden, inability to generate sustaining free cash flow, and dependency on external capital and asset sales, we have a worst-case terminal price target of zero," Spruce Point said.

Have breaking news sent to your inbox. Subscribe to MarketWatch's free Bulletin emails. Sign up here.

Source: Read Full Article