Why XPO Logistics Stock Tanked 37% in August
Shares of shipping provider XPO Logistics (NYSE: XPO) fell a dramatic 37% in August, according to data from S&P Global Market Intelligence. The interesting thing here is that the drop occurred in basically one fell swoop, which is an indication that there's something unique going on. Basically, there was a corporate action that changed the makeup of the company. Here's a quick look at what you need to know before you decide what to do next.
On July 13, the board of XPO Logistics announced that it had approved the "separation of its logistics segment through the distribution of all of the outstanding shares of common stock of its wholly owned subsidiary," GXO Logistics (NYSE: GXO), "to holders of XPO common stock." Effectively, it was spinning off its logistics arm, with each share of XPO Logistics receiving one share of GXO.
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Source Fool.com
