FedEx (FDX) Trading Down 6.3% on Analyst Downgrade

Shares of FedEx Co. (NYSE:FDX) were down 6.3% on Tuesday after Morgan Stanley lowered their price target on the stock from $240.00 to $230.00. Morgan Stanley currently has an equal weight rating on the stock. FedEx traded as low as $212.80 and last traded at $215.52. Approximately 3,816,639 shares were traded during trading, an increase of 126% from the average daily volume of 1,686,638 shares. The stock had previously closed at $230.04.

Several other analysts have also weighed in on FDX. Zacks Investment Research lowered shares of FedEx from a “hold” rating to a “sell” rating in a research note on Tuesday, August 21st. JPMorgan Chase & Co. reiterated a “buy” rating and set a $305.00 target price on shares of FedEx in a research note on Tuesday, September 18th. Credit Suisse Group set a $307.00 price target on shares of FedEx and gave the stock a “buy” rating in a research report on Tuesday, September 18th. Loop Capital upped their price target on shares of FedEx to $318.00 and gave the stock a “buy” rating in a research report on Tuesday, September 18th. Finally, Wolfe Research set a $275.00 price target on shares of FedEx and gave the stock a “buy” rating in a research report on Tuesday, September 18th. Three investment analysts have rated the stock with a hold rating and eighteen have assigned a buy rating to the company. FedEx presently has an average rating of “Buy” and an average target price of $285.85.

In related news, Director John A. Edwardson sold 1,160 shares of the company’s stock in a transaction dated Wednesday, September 19th. The shares were sold at an average price of $242.35, for a total value of $281,126.00. Following the completion of the sale, the director now owns 32,800 shares of the company’s stock, valued at $7,949,080. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Susan Patricia Griffith acquired 1,000 shares of FedEx stock in a transaction that occurred on Wednesday, October 17th. The stock was bought at an average cost of $225.16 per share, with a total value of $225,160.00. The disclosure for this purchase can be found here. 8.50% of the stock is currently owned by corporate insiders.

A number of hedge funds have recently bought and sold shares of FDX. Palo Capital Inc. acquired a new stake in FedEx in the third quarter worth about $108,000. Virtus Alternative Investment Advisers Inc. acquired a new stake in FedEx in the third quarter worth about $110,000. Moneta Group Investment Advisors LLC lifted its holdings in FedEx by 14,117.1% in the second quarter. Moneta Group Investment Advisors LLC now owns 63,835 shares of the shipping service provider’s stock worth $114,000 after purchasing an additional 63,386 shares during the period. Fortis Advisors LLC lifted its holdings in FedEx by 278.2% in the second quarter. Fortis Advisors LLC now owns 503 shares of the shipping service provider’s stock worth $115,000 after purchasing an additional 370 shares during the period. Finally, Lenox Wealth Advisors LLC acquired a new stake in FedEx in the 3rd quarter valued at about $120,000. 72.11% of the stock is owned by institutional investors and hedge funds.

The company has a debt-to-equity ratio of 0.79, a quick ratio of 1.26 and a current ratio of 1.32. The firm has a market cap of $60.35 billion, a price-to-earnings ratio of 14.08, a PEG ratio of 1.04 and a beta of 1.35.

FedEx (NYSE:FDX) last issued its quarterly earnings results on Monday, September 17th. The shipping service provider reported $3.46 earnings per share for the quarter, missing the Zacks’ consensus estimate of $3.78 by ($0.32). FedEx had a net margin of 7.16% and a return on equity of 23.71%. The business had revenue of $17.05 billion during the quarter, compared to analyst estimates of $16.88 billion. During the same period in the previous year, the company posted $2.65 earnings per share. FedEx’s revenue was up 11.5% compared to the same quarter last year. On average, research analysts anticipate that FedEx Co. will post 17.35 EPS for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, January 2nd. Shareholders of record on Monday, December 10th will be issued a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 1.21%. The ex-dividend date of this dividend is Friday, December 7th. FedEx’s payout ratio is 16.98%.

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FedEx Company Profile (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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