FedEx (NYSE:FDX) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued on Tuesday.
According to Zacks, “Shares of FedEx have outperformed its industry on a year-to-date basis. The strong growth of e-commerce is a positive for the company. FedEx's efforts to modernize its aircraft fleet are also encouraging. The company has an impressive dividend payment history. In June 2017, the company raised its quarterly dividend by 25%. With respect to buybacks, the company repurchased 2.96 million shares in fiscal 2017. Moreover, the hike in shipping rates, announced in September 2017, should boost revenues. However, high costs are expected to hurt the company's bottom line in the second quarter of fiscal 2018 as was the case in the preceding quarter. Costs related to the integration process of TNT Express and the increased investments at its Ground unit are also likely to hurt the bottom-line. Detailed results should be out on Dec 19.”
A number of other brokerages have also weighed in on FDX. Citigroup boosted their price target on FedEx to $275.00 and gave the stock a “buy” rating in a research note on Tuesday. Barclays restated an “overweight” rating and set a $270.00 price target (up previously from $230.00) on shares of FedEx in a research note on Thursday, November 30th. They noted that the move was a valuation call. Cowen restated an “outperform” rating and set a $240.00 price target on shares of FedEx in a research note on Friday, October 13th. Oppenheimer restated a “buy” rating and set a $236.00 price target on shares of FedEx in a research note on Friday, October 20th. Finally, J P Morgan Chase & Co lifted their target price on FedEx from $237.00 to $264.00 and gave the stock an “overweight” rating in a report on Thursday, October 12th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating and twenty-three have assigned a buy rating to the company. FedEx currently has an average rating of “Buy” and a consensus target price of $233.41.
FedEx (NYSE:FDX) last posted its earnings results on Tuesday, September 19th. The shipping service provider reported $2.51 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.17 by ($0.66). FedEx had a net margin of 4.72% and a return on equity of 20.69%. The company had revenue of $15.30 billion during the quarter, compared to analysts’ expectations of $15.35 billion. During the same quarter last year, the firm earned $2.90 EPS. FedEx’s revenue for the quarter was up 4.1% on a year-over-year basis. research analysts forecast that FedEx will post 12.47 earnings per share for the current year.
In other news, CEO Michael L. Ducker sold 14,964 shares of the company’s stock in a transaction on Friday, September 29th. The stock was sold at an average price of $225.85, for a total value of $3,379,619.40. Following the transaction, the chief executive officer now owns 53,397 shares of the company’s stock, valued at approximately $12,059,712.45. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Donald F. Colleran sold 10,000 shares of the stock in a transaction dated Thursday, September 21st. The stock was sold at an average price of $220.00, for a total value of $2,200,000.00. Following the transaction, the executive vice president now directly owns 30,499 shares in the company, valued at approximately $6,709,780. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 40,094 shares of company stock valued at $9,024,637. 8.45% of the stock is owned by company insiders.
A number of institutional investors and hedge funds have recently bought and sold shares of the stock. FNY Managed Accounts LLC purchased a new position in shares of FedEx in the 1st quarter valued at about $100,000. Salem Investment Counselors Inc. grew its stake in FedEx by 2.8% during the 2nd quarter. Salem Investment Counselors Inc. now owns 479 shares of the shipping service provider’s stock worth $104,000 after buying an additional 13 shares during the last quarter. Krilogy Financial LLC grew its stake in shares of FedEx by 0.4% in the 2nd quarter. Krilogy Financial LLC now owns 511 shares of the shipping service provider’s stock valued at $111,000 after purchasing an additional 2 shares during the last quarter. Alexandria Capital LLC grew its stake in shares of FedEx by 2.5% in the 2nd quarter. Alexandria Capital LLC now owns 540 shares of the shipping service provider’s stock valued at $117,000 after purchasing an additional 13 shares during the last quarter. Finally, Financial Engines Advisors L.L.C. purchased a new position in shares of FedEx in the 3rd quarter valued at approximately $132,000. 75.73% of the stock is currently owned by hedge funds and other institutional investors.
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FedEx Company Profile
FedEx Corporation (FedEx) provides a portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the FedEx brand. The Company’s segments include FedEx Express, TNT Express, FedEx Ground, FedEx Freight and FedEx Services.
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