FedEx (FDX) Downgraded to Hold at Zacks Investment Research

Zacks Investment Research cut shares of FedEx (NYSE:FDX) from a buy rating to a hold rating in a report issued on Thursday, January 4th.

According to Zacks, “Shares of FedEx have outperformed its industry in 2017. Ushering in further good news, FedEx also outperformed in the second quarter of fiscal 2018 driven by increased package volumes during the current holiday season. Growth was witnessed across all the major segments of the company. In fact, the strong growth of e-commerce is a huge positive for the company. The company's efforts to reward its shareholders through dividend payments and share buybacks are also encouraging. However, the company's operations have been disrupted by the June 2017 cyberattack. Moreover, high costs are hurting the bottom line. Significant investments at the company's Ground unit are pushing up costs. FedEx is also a highly leveraged company.”

A number of other research analysts have also issued reports on FDX. ValuEngine upgraded FedEx from a hold rating to a buy rating in a research report on Sunday, December 31st. Wells Fargo & Co set a $275.00 price objective on FedEx and gave the company a buy rating in a research report on Wednesday, December 20th. Oppenheimer reiterated a buy rating and set a $229.00 price target on shares of FedEx in a research report on Wednesday, September 20th. Stifel Nicolaus reiterated a hold rating and set a $221.00 price target (up previously from $216.00) on shares of FedEx in a research report on Wednesday, September 20th. Finally, Bank of America reiterated a buy rating and set a $240.00 price target on shares of FedEx in a research report on Wednesday, September 20th. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and twenty-four have issued a buy rating to the company’s stock. The stock currently has an average rating of Buy and a consensus price target of $269.95.

Shares of FedEx (NYSE FDX) traded up $3.18 during midday trading on Thursday, hitting $271.19. The stock had a trading volume of 1,652,100 shares, compared to its average volume of 2,121,938. FedEx has a 1-year low of $182.89 and a 1-year high of $271.39. The company has a quick ratio of 1.50, a current ratio of 1.57 and a debt-to-equity ratio of 0.89. The company has a market cap of $72,590.00, a P/E ratio of 24.93, a price-to-earnings-growth ratio of 1.60 and a beta of 1.36.

FedEx (NYSE:FDX) last issued its quarterly earnings results on Tuesday, December 19th. The shipping service provider reported $3.18 earnings per share for the quarter, beating the Zacks’ consensus estimate of $2.89 by $0.29. FedEx had a return on equity of 20.56% and a net margin of 4.74%. The business had revenue of $16.30 billion during the quarter, compared to the consensus estimate of $15.67 billion. During the same period in the previous year, the business earned $2.80 EPS. The business’s quarterly revenue was up 9.4% on a year-over-year basis. research analysts forecast that FedEx will post 13.03 EPS for the current year.

The business also recently declared a quarterly dividend, which was paid on Tuesday, January 2nd. Stockholders of record on Monday, December 11th were paid a dividend of $0.50 per share. The ex-dividend date of this dividend was Friday, December 8th. This represents a $2.00 annualized dividend and a dividend yield of 0.74%. FedEx’s dividend payout ratio (DPR) is presently 18.38%.

In other FedEx news, EVP Robert B. Carter sold 3,970 shares of the company’s stock in a transaction that occurred on Thursday, December 21st. The stock was sold at an average price of $250.73, for a total value of $995,398.10. Following the completion of the transaction, the executive vice president now owns 187,025 shares of the company’s stock, valued at approximately $46,892,778.25. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, COO David J. Bronczek sold 46,555 shares of the company’s stock in a transaction that occurred on Tuesday, January 2nd. The shares were sold at an average price of $255.49, for a total value of $11,894,336.95. Following the completion of the transaction, the chief operating officer now directly owns 48,562 shares of the company’s stock, valued at approximately $12,407,105.38. The disclosure for this sale can be found here. In the last quarter, insiders have sold 68,671 shares of company stock valued at $17,137,160. 8.45% of the stock is currently owned by corporate insiders.

A number of institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. raised its holdings in FedEx by 2.7% in the 2nd quarter. Vanguard Group Inc. now owns 18,490,065 shares of the shipping service provider’s stock valued at $4,018,446,000 after acquiring an additional 492,840 shares in the last quarter. FMR LLC raised its holdings in FedEx by 0.3% in the 2nd quarter. FMR LLC now owns 4,530,154 shares of the shipping service provider’s stock valued at $984,539,000 after acquiring an additional 15,382 shares in the last quarter. Ameriprise Financial Inc. raised its holdings in FedEx by 7.3% in the 3rd quarter. Ameriprise Financial Inc. now owns 3,925,763 shares of the shipping service provider’s stock valued at $885,594,000 after acquiring an additional 266,660 shares in the last quarter. Capital World Investors raised its holdings in shares of FedEx by 16.1% in the 2nd quarter. Capital World Investors now owns 3,614,899 shares of the shipping service provider’s stock worth $785,626,000 after buying an additional 501,617 shares in the last quarter. Finally, Canada Pension Plan Investment Board raised its holdings in shares of FedEx by 3.3% in the 3rd quarter. Canada Pension Plan Investment Board now owns 3,612,357 shares of the shipping service provider’s stock worth $814,875,000 after buying an additional 116,500 shares in the last quarter. 75.66% of the stock is owned by hedge funds and other institutional investors.

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About FedEx

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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