FedEx (NYSE:FDX) Shares Gap Up Following Strong Earnings

FedEx Co. (NYSE:FDX) gapped up prior to trading on Wednesday following a better than expected earnings announcement. The stock had previously closed at $236.67, but opened at $261.00. FedEx shares last traded at $253.50, with a volume of 240,666 shares changing hands.

The shipping service provider reported $4.87 EPS for the quarter, beating the consensus estimate of $2.69 by $2.18. The company had revenue of $19.32 billion during the quarter, compared to analysts’ expectations of $17.56 billion. FedEx had a net margin of 1.86% and a return on equity of 13.49%. The business’s revenue for the quarter was up 13.3% compared to the same quarter last year. During the same period in the previous year, the company earned $3.05 EPS.

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Friday, September 4th will be issued a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a dividend yield of 1.03%. The ex-dividend date of this dividend is Thursday, September 3rd. FedEx’s dividend payout ratio (DPR) is presently 27.37%.

Several equities research analysts recently issued reports on the stock. Deutsche Bank lifted their price target on shares of FedEx from $128.00 to $150.00 and gave the company a “hold” rating in a report on Thursday, July 2nd. Cowen lifted their price target on shares of FedEx from $167.00 to $264.00 and gave the company an “outperform” rating in a report on Friday, September 11th. JPMorgan Chase & Co. reaffirmed a “buy” rating and set a $298.00 price target (up from $265.00) on shares of FedEx in a report on Wednesday. Stephens lifted their price target on shares of FedEx from $215.00 to $260.00 and gave the company an “overweight” rating in a report on Thursday, September 10th. Finally, Credit Suisse Group boosted their target price on shares of FedEx from $171.00 to $260.00 and gave the stock an “outperform” rating in a report on Monday. One investment analyst has rated the stock with a sell rating, eleven have given a hold rating, eighteen have given a buy rating and one has issued a strong buy rating to the company’s stock. The company currently has an average rating of “Buy” and an average price target of $241.69.

In related news, Director Susan C. Schwab sold 10,570 shares of the business’s stock in a transaction on Monday, July 6th. The shares were sold at an average price of $155.58, for a total transaction of $1,644,480.60. Following the transaction, the director now owns 16,600 shares in the company, valued at approximately $2,582,628. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Robert B. Carter sold 21,480 shares of the business’s stock in a transaction on Wednesday, July 8th. The shares were sold at an average price of $157.53, for a total transaction of $3,383,744.40. Following the transaction, the executive vice president now owns 74,366 shares in the company, valued at approximately $11,714,875.98. The disclosure for this sale can be found here. Insiders sold a total of 44,058 shares of company stock worth $7,149,678 in the last 90 days. Corporate insiders own 8.49% of the company’s stock.

Several institutional investors have recently added to or reduced their stakes in FDX. Invesco Ltd. lifted its position in shares of FedEx by 212.2% during the 1st quarter. Invesco Ltd. now owns 2,116,047 shares of the shipping service provider’s stock valued at $256,592,000 after acquiring an additional 1,438,225 shares during the period. Advisor Group Holdings Inc. bought a new stake in shares of FedEx in the 1st quarter worth $10,618,000. Greenhaven Associates Inc. bought a new position in FedEx during the second quarter valued at about $112,871,000. FMR LLC grew its position in FedEx by 16.8% during the second quarter. FMR LLC now owns 4,945,173 shares of the shipping service provider’s stock valued at $693,412,000 after buying an additional 711,755 shares during the period. Finally, Wellington Management Group LLP boosted its position in FedEx by 73.7% during the first quarter. Wellington Management Group LLP now owns 1,112,398 shares of the shipping service provider’s stock worth $134,890,000 after purchasing an additional 472,092 shares during the period. Institutional investors own 71.65% of the company’s stock.

The stock has a market capitalization of $62.01 billion, a PE ratio of 52.25, a P/E/G ratio of 1.84 and a beta of 1.48. The company has a debt-to-equity ratio of 1.20, a current ratio of 1.58 and a quick ratio of 1.53. The business’s fifty day moving average price is $204.74 and its 200-day moving average price is $148.86.

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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