AP/Tony Ding
XPO Logistics CEO Brad Jacobs, left, talks with company driver Antoine Seegars.
- XPO Logisitcs was surging Friday morning after announcing a $1 billion stock-buyback program.
- The announcement comes one day after the short seller Spruce Point Capital Management alleged "financial irregularities."
- Watch XPO Logisitcs trade live.
XPO Logisitics was surging Friday morning, up more than 7% to $47.93 a share, after announcing a $1 billion stock-buyback program. Shares tumbled more than 26% Thursday, to their lowest level since April 2016, after the short seller Spruce Point Capital Management alleged the company had "financial irregularities" that were masking its growth problem.
XPO responded to the report on Thursday, saying the allegations were "intentionally misleading, with significant inaccuracies" and that they were "largely baseless and an attempt to string together unrelated pieces of incorrect information to paint an inaccurate impression of the company."
Spruce Capital's acusation came one day after the logistics company slashed its 2019 outlook, saying it sees EBITDA up 12%-15% next year. Earlier this month, CEO Brad Jacobs said he saw a 15% to 18% increase.
XPO was down 51% this year through Thursday.
