Investors Buy FedEx (FDX) on Weakness on Analyst Downgrade

Traders bought shares of FedEx Co. (NYSE:FDX) on weakness during trading hours on Thursday after UBS Group lowered their price target on the stock from $234.00 to $200.00. $102.87 million flowed into the stock on the tick-up and $70.65 million flowed out of the stock on the tick-down, for a money net flow of $32.22 million into the stock. Of all equities tracked, FedEx had the 25th highest net in-flow for the day. FedEx traded down ($0.47) for the day and closed at $170.12

Several other equities analysts have also recently commented on FDX. Zacks Investment Research raised shares of FedEx from a “hold” rating to a “buy” rating and set a $226.00 target price on the stock in a research report on Tuesday, December 11th. Oppenheimer dropped their target price on shares of FedEx from $288.00 to $234.00 and set an “outperform” rating on the stock in a research report on Wednesday, December 19th. Daiwa Capital Markets set a $190.00 target price on shares of FedEx and gave the stock a “buy” rating in a research report on Thursday, December 20th. Cowen reissued an “outperform” rating and set a $242.00 target price (down previously from $280.00) on shares of FedEx in a research report on Wednesday, December 19th. Finally, Citigroup dropped their target price on shares of FedEx from $275.00 to $225.00 and set a “buy” rating on the stock in a research report on Wednesday, December 19th. Two research analysts have rated the stock with a sell rating, two have assigned a hold rating and seventeen have given a buy rating to the stock. The stock presently has an average rating of “Buy” and a consensus price target of $237.75.

In related news, Director David P. Steiner purchased 7,000 shares of the stock in a transaction that occurred on Wednesday, January 2nd. The shares were bought at an average price of $162.92 per share, with a total value of $1,140,440.00. Following the acquisition, the director now owns 25,994 shares of the company’s stock, valued at approximately $4,234,942.48. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Director Susan Patricia Griffith purchased 1,000 shares of the stock in a transaction that occurred on Wednesday, October 17th. The stock was bought at an average cost of $225.16 per share, for a total transaction of $225,160.00. The disclosure for this purchase can be found here. Insiders own 8.50% of the company’s stock.

Large investors have recently bought and sold shares of the stock. FMR LLC grew its holdings in shares of FedEx by 4.5% during the 2nd quarter. FMR LLC now owns 4,582,932 shares of the shipping service provider’s stock worth $1,040,600,000 after purchasing an additional 197,188 shares during the period. Van ECK Associates Corp purchased a new stake in shares of FedEx during the 2nd quarter worth about $607,000. OppenheimerFunds Inc. grew its holdings in shares of FedEx by 1.6% during the 2nd quarter. OppenheimerFunds Inc. now owns 131,928 shares of the shipping service provider’s stock worth $29,955,000 after purchasing an additional 2,132 shares during the period. Glen Harbor Capital Management LLC grew its holdings in shares of FedEx by 18.5% during the 2nd quarter. Glen Harbor Capital Management LLC now owns 3,072 shares of the shipping service provider’s stock worth $698,000 after purchasing an additional 480 shares during the period. Finally, Voya Investment Management LLC grew its holdings in shares of FedEx by 2.7% during the 2nd quarter. Voya Investment Management LLC now owns 135,884 shares of the shipping service provider’s stock worth $30,854,000 after purchasing an additional 3,550 shares during the period. 72.44% of the stock is currently owned by institutional investors.

The company has a quick ratio of 1.36, a current ratio of 1.42 and a debt-to-equity ratio of 0.85. The firm has a market capitalization of $44.53 billion, a PE ratio of 11.17, a PEG ratio of 0.84 and a beta of 1.63.

FedEx (NYSE:FDX) last issued its earnings results on Tuesday, December 18th. The shipping service provider reported $4.03 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $4.05 by ($0.02). FedEx had a return on equity of 24.11% and a net margin of 7.23%. The firm had revenue of $17.82 billion for the quarter, compared to analysts’ expectations of $17.71 billion. During the same quarter in the previous year, the firm posted $3.18 EPS. Analysts expect that FedEx Co. will post 15.91 earnings per share for the current year.

The company also recently announced a quarterly dividend, which was paid on Wednesday, January 2nd. Stockholders of record on Monday, December 10th were issued a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a dividend yield of 1.52%. The ex-dividend date was Friday, December 7th. FedEx’s payout ratio is currently 16.98%.

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About FedEx (NYSE:FDX)

FedEx Corporation provides transportation, e-commerce, and business services worldwide. The company's FedEx Express segment offers shipping services for delivery of packages and freight. Its FedEx Ground segment provides business and residential money-back guaranteed ground package delivery services; and consolidates and delivers low-weight and less time-sensitive business-to-consumer packages.

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