Zacks Investment Research lowered shares of FedEx (NYSE:FDX) from a buy rating to a hold rating in a research note issued to investors on Friday.
According to Zacks, “Shares of FedEx have outperformed its industry and rival United Parcel Service in a year's time. Ushering in further good news, FedEx outperformed in the third quarter of fiscal 2018 driven by increased package volumes and higher base rates. The new tax law is also encouraging. It was primarily responsible for the company's bullish earnings outlook for fiscal 2018. Efforts to reward its shareholders through dividend payments and share buybacks are also noteworthy. An uptick in such shareholder-friendly activities cannot be ruled out, in light of the savings induced by the Tax Cuts and Jobs Act. However, high costs are hurting the bottom line. Significant investments at the company's Ground unit are also pushing up costs. Capital expenses are expected to be $5.8 billion for fiscal 2018, higher than fiscal 2017 levels. The company's high debt levels are also concerning.”
Several other equities research analysts have also recently issued reports on FDX. Stifel Nicolaus raised shares of FedEx from a hold rating to a buy rating and raised their price target for the stock from $284.00 to $295.00 in a research note on Wednesday. Oppenheimer raised their price target on shares of FedEx from $265.00 to $274.00 and gave the stock an outperform rating in a research note on Friday, March 16th. Credit Suisse Group decreased their price target on shares of FedEx from $314.00 to $306.00 and set an outperform rating on the stock in a research note on Wednesday. Morgan Stanley decreased their price target on shares of FedEx from $250.00 to $240.00 and set an equal weight rating on the stock in a research note on Wednesday. Finally, Robert W. Baird raised their price target on shares of FedEx from $270.00 to $280.00 and gave the stock an outperform rating in a research note on Thursday, March 15th. One investment analyst has rated the stock with a sell rating, three have given a hold rating and twenty-three have assigned a buy rating to the company’s stock. The company presently has a consensus rating of Buy and a consensus price target of $279.66.
FedEx (NYSE:FDX) traded down $6.79 during trading on Friday, hitting $229.48. 2,665,369 shares of the company’s stock traded hands, compared to its average volume of 2,047,138. FedEx has a one year low of $182.89 and a one year high of $274.66. The firm has a market cap of $63,294.27, a PE ratio of 14.02, a P/E/G ratio of 1.22 and a beta of 1.32. The company has a debt-to-equity ratio of 0.85, a current ratio of 1.43 and a quick ratio of 1.50.
FedEx (NYSE:FDX) last released its quarterly earnings results on Tuesday, March 20th. The shipping service provider reported $3.72 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $3.11 by $0.61. FedEx had a net margin of 6.99% and a return on equity of 21.65%. The company had revenue of $16.53 billion for the quarter, compared to analysts’ expectations of $16.17 billion. During the same period last year, the company earned $2.35 EPS. The firm’s revenue for the quarter was up 10.2% compared to the same quarter last year. equities research analysts predict that FedEx will post 15.14 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Monday, April 2nd. Investors of record on Monday, March 12th will be issued a $0.50 dividend. The ex-dividend date of this dividend is Friday, March 9th. This represents a $2.00 annualized dividend and a yield of 0.87%. FedEx’s payout ratio is 12.22%.
In related news, COO David J. Bronczek sold 46,555 shares of the firm’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 transaction, the chief operating officer now owns 48,562 shares in the company, valued at $12,407,105.38. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Director David P. Steiner sold 3,016 shares of the firm’s stock in a transaction that occurred on Friday, January 5th. The shares were sold at an average price of $266.05, for a total transaction of $802,406.80. Following the completion of the transaction, the director now owns 16,040 shares in the company, valued at approximately $4,267,442. The disclosure for this sale can be found here. Company insiders own 8.45% of the company’s stock.
A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Cambridge Investment Research Advisors Inc. raised its holdings in FedEx by 27.6% in the fourth quarter. Cambridge Investment Research Advisors Inc. now owns 17,604 shares of the shipping service provider’s stock valued at $4,393,000 after buying an additional 3,807 shares during the period. Rehmann Capital Advisory Group raised its holdings in FedEx by 18.7% in the fourth quarter. Rehmann Capital Advisory Group now owns 2,021 shares of the shipping service provider’s stock valued at $504,000 after buying an additional 318 shares during the period. Xact Kapitalforvaltning AB raised its holdings in FedEx by 8.9% in the fourth quarter. Xact Kapitalforvaltning AB now owns 38,868 shares of the shipping service provider’s stock valued at $9,699,000 after buying an additional 3,166 shares during the period. Envestnet Asset Management Inc. raised its stake in shares of FedEx by 38.2% during the fourth quarter. Envestnet Asset Management Inc. now owns 61,913 shares of the shipping service provider’s stock valued at $15,448,000 after purchasing an additional 17,129 shares during the period. Finally, Griffin Asset Management Inc. raised its stake in shares of FedEx by 12.0% during the fourth quarter. Griffin Asset Management Inc. now owns 6,030 shares of the shipping service provider’s stock valued at $1,505,000 after purchasing an additional 645 shares during the period. Hedge funds and other institutional investors own 74.58% of the company’s stock.
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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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