Bank of America Lowers FedEx (NYSE:FDX) Price Target to $376.00

Key Points

• Bank of America cut its price target on FedEx from $440 to $376 while keeping a buy rating, implying about 14% upside from the current price.
• FedEx shares were down 2.6% in Tuesday trading, closing near $329.57, as the stock traded below both its 50-day and 200-day moving averages.
• Despite some analyst caution, FedEx recently posted better-than-expected quarterly results, with EPS and revenue both beating estimates and revenue rising 8.3% year over year.

FedEx (NYSE:FDX - Get Free Report) had its price target dropped by Bank of America from $440.00 to $376.00 in a report released on Tuesday,Benzinga reports. The firm presently has a "buy" rating on the shipping service provider's stock. Bank of America's target price suggests a potential upside of 14.09% from the company's current price.

A number of other equities research analysts have also commented on FDX. Stephens reissued an "overweight" rating and issued a $435.00 price target on shares of FedEx in a research report on Tuesday, April 14th. Truist Financial set a $155.00 price target on shares of FedEx in a report on Tuesday. Argus boosted their price target on shares of FedEx from $350.00 to $400.00 and gave the stock a "buy" rating in a report on Monday, April 6th. Stifel Nicolaus boosted their price target on shares of FedEx from $425.00 to $442.00 in a report on Friday, April 10th. Finally, TD Cowen boosted their price target on shares of FedEx from $383.00 to $426.00 and gave the stock a "buy" rating in a report on Friday, March 20th. Eighteen equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $381.26.

FedEx Stock Down 2.6%

Shares of NYSE FDX traded down $8.76 during mid-day trading on Tuesday, reaching $329.57. 2,398,089 shares of the company's stock traded hands, compared to its average volume of 1,615,251. The stock has a market cap of $78.64 billion, a P/E ratio of 17.83, a PEG ratio of 1.57 and a beta of 1.28. The business has a 50-day simple moving average of $376.08 and a 200 day simple moving average of $339.12. FedEx has a 1-year low of $214.82 and a 1-year high of $413.87. The company has a debt-to-equity ratio of 0.77, a current ratio of 1.47 and a quick ratio of 1.44.

FedEx (NYSE:FDX - Get Free Report) last issued its quarterly earnings data on Thursday, March 19th. The shipping service provider reported $5.25 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.12 by $1.13. The firm had revenue of $24 billion during the quarter, compared to analysts' expectations of $23.44 billion. FedEx had a net margin of 4.88% and a return on equity of 16.76%. The business's revenue was up 8.3% on a year-over-year basis. During the same period last year, the company earned $4.51 earnings per share. On average, analysts expect that FedEx will post 19.63 EPS for the current fiscal year.

Insider Buying and Selling at FedEx

In related news, EVP Kawal Preet sold 4,900 shares of the company's stock in a transaction that occurred on Tuesday, April 14th. The shares were sold at an average price of $367.89, for a total transaction of $1,802,661.00. Following the sale, the executive vice president directly owned 10,953 shares in the company, valued at approximately $4,029,499.17. This represents a 30.91% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, EVP Tracy B. Brightman sold 16,959 shares of the firm's stock in a transaction on Wednesday, April 15th. The shares were sold at an average price of $363.47, for a total transaction of $6,164,087.73. Following the completion of the transaction, the executive vice president directly owned 11,052 shares of the company's stock, valued at approximately $4,017,070.44. The trade was a 60.54% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 48,104 shares of company stock valued at $17,599,006. 0.53% of the stock is owned by corporate insiders.

Institutional Trading of FedEx

Several institutional investors and hedge funds have recently modified their holdings of FDX. Hollencrest Capital Management bought a new stake in shares of FedEx during the first quarter valued at approximately $25,000. Bayban bought a new stake in shares of FedEx during the first quarter valued at approximately $26,000. EFG International AG bought a new stake in shares of FedEx during the fourth quarter valued at approximately $27,000. Wealth Watch Advisors INC bought a new stake in shares of FedEx during the third quarter valued at approximately $28,000. Finally, Ameriflex Group Inc. boosted its stake in FedEx by 103.3% during the third quarter. Ameriflex Group Inc. now owns 124 shares of the shipping service provider's stock worth $29,000 after acquiring an additional 63 shares in the last quarter. Hedge funds and other institutional investors own 84.47% of the company's stock.

Key Stories Impacting FedEx

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: BofA Securities kept a Buy rating on FedEx and said the FedEx Freight spin-off could create cost savings and more buyback capacity for the parent company, which supports the long-term investment case. FedEx Freight Spin-Off Unlocks Cost Savings, Buyback Potential At FedEx
• Positive Sentiment: Several articles note that FedEx has historically beaten earnings estimates and may have another beat when it reports later this month, which could help the stock if results and guidance come in strong. Should You Buy FedEx Stock Before June 23?
• Neutral Sentiment: FedEx completed the spin-off of FedEx Freight, creating a separate publicly traded LTL carrier. This is a major structural change, but the market is still waiting to see how much value it ultimately creates for FDX shareholders.
• Neutral Sentiment: FedEx Freight’s launch and related coverage, including comments about self-driving technology and growth plans, highlight strategic opportunities, but these developments are not yet a direct catalyst for FedEx’s core parcel business.
• Negative Sentiment: Rothschild & Co Redburn and BNP Paribas Exane both cut their price targets on FedEx and kept neutral ratings, reinforcing concerns that the stock may have limited upside from current levels. MarketScreener MarketScreener
• Negative Sentiment: Other firms also lowered targets, including BMO Capital and HSBC, adding to the overhang on the shares as investors reassess FedEx’s earnings power after the spinoff.

About FedEx

FedEx Corporation NYSE: FDX is a global logistics and courier company headquartered in Memphis, Tennessee. Founded by Frederick W. Smith in 1971 and beginning operations in the early 1970s, the company pioneered overnight express shipping and has since expanded into a diversified portfolio of transportation, e-commerce and supply-chain services. FedEx operates an integrated air-and-ground network that moves parcels, freight and documents for businesses and consumers worldwide.

FedEx's core operating segments include express parcel delivery via its FedEx Express division, domestic and residential parcel delivery through FedEx Ground, less-than-truckload (LTL) freight services, and logistics and supply-chain management solutions.

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