Zacks Investment Research cut shares of FedEx (NYSE:FDX) from a buy rating to a hold rating in a research report sent to investors 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 equities analysts have also recently issued reports on the stock. Loop Capital increased their price objective on shares of FedEx to $318.00 in a research note on Thursday, January 4th. ValuEngine upgraded shares of FedEx from a hold rating to a buy rating in a research note on Sunday, December 31st. Argus increased their price objective on shares of FedEx from $245.00 to $290.00 and gave the company a buy rating in a research note on Tuesday, December 26th. Oppenheimer reaffirmed a buy rating and issued a $265.00 target price (up previously from $236.00) on shares of FedEx in a report on Wednesday, December 20th. Finally, Citigroup reaffirmed a buy rating and issued a $280.00 target price on shares of FedEx in a report on Wednesday, December 20th. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and twenty-four have issued a buy rating to the company’s stock. The company currently has a consensus rating of Buy and a consensus price target of $269.04.
FedEx (NYSE FDX) traded up $0.26 during trading hours on Thursday, reaching $268.01. 1,644,300 shares of the company traded hands, compared to its average volume of 2,189,057. The firm has a market cap of $72,170.00, a PE ratio of 24.63, a P/E/G ratio of 1.60 and a beta of 1.36. FedEx has a 1 year low of $182.89 and a 1 year high of $271.39. The company has a current ratio of 1.57, a quick ratio of 1.50 and a debt-to-equity ratio of 0.89.
FedEx (NYSE:FDX) last released its earnings results on Tuesday, December 19th. The shipping service provider reported $3.18 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $2.89 by $0.29. FedEx had a net margin of 4.74% and a return on equity of 20.56%. The firm had revenue of $16.30 billion during the quarter, compared to analysts’ expectations of $15.67 billion. During the same period in the prior year, the company earned $2.80 EPS. The business’s quarterly revenue was up 9.4% compared to the same quarter last year. research analysts forecast that FedEx will post 13.03 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Tuesday, January 2nd. Shareholders of record on Monday, December 11th were issued a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 0.75%. The ex-dividend date of this dividend was Friday, December 8th. FedEx’s dividend payout ratio is currently 18.38%.
In other FedEx news, COO David J. Bronczek sold 46,555 shares of the stock in a transaction dated Tuesday, January 2nd. The shares were sold at an average price of $255.49, for a total transaction of $11,894,336.95. Following the sale, the chief operating officer now owns 48,562 shares of the company’s stock, valued at approximately $12,407,105.38. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director David P. Steiner sold 3,016 shares of the stock in a transaction dated Friday, January 5th. The stock was sold at an average price of $266.05, for a total transaction of $802,406.80. Following the sale, the director now directly owns 16,040 shares in the company, valued at approximately $4,267,442. The disclosure for this sale can be found here. In the last three months, insiders have sold 68,671 shares of company stock worth $17,137,160. Insiders own 8.45% of the company’s stock.
Large investors have recently modified their holdings of the business. Strategic Advisors LLC lifted its position in FedEx by 16.7% during the 2nd quarter. Strategic Advisors LLC now owns 2,138 shares of the shipping service provider’s stock valued at $465,000 after purchasing an additional 306 shares during the period. Stevens Capital Management LP lifted its position in FedEx by 60.6% during the 2nd quarter. Stevens Capital Management LP now owns 39,340 shares of the shipping service provider’s stock valued at $8,550,000 after purchasing an additional 14,845 shares during the period. Vanguard Group Inc. lifted its position in FedEx by 2.7% during 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 purchasing an additional 492,840 shares during the period. Prudential PLC lifted its position in FedEx by 25.8% during the 2nd quarter. Prudential PLC now owns 52,403 shares of the shipping service provider’s stock valued at $11,389,000 after purchasing an additional 10,753 shares during the period. Finally, Sprott Inc. lifted its position in FedEx by 11.7% during the 2nd quarter. Sprott Inc. now owns 7,650 shares of the shipping service provider’s stock valued at $1,663,000 after purchasing an additional 800 shares during the period. 75.66% of the stock is currently owned by hedge funds and other institutional investors.
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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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