BMO Capital Markets Issues Pessimistic Forecast for FedEx (NYSE:FDX) Stock Price

Key Points

• BMO Capital Markets cut its price target on FedEx from $410 to $340 and kept a market perform rating, signaling a more cautious outlook even though the new target still implies slight upside from the prior close.
• FedEx shares fell 19.1% to $333.16 in Monday trading, with the stock moving below its recent 50-day average and near its 200-day average.
• Despite the analyst downgrade, FedEx recently posted strong quarterly results, including $5.25 EPS versus $4.12 expected and $24 billion in revenue versus $23.44 billion expected.

FedEx (NYSE:FDX - Get Free Report) had its target price cut by analysts at BMO Capital Markets from $410.00 to $340.00 in a research report issued to clients and investors on Monday,MarketScreener reports. The brokerage presently has a "market perform" rating on the shipping service provider's stock. BMO Capital Markets' price objective indicates a potential upside of 2.05% from the company's previous close.

A number of other brokerages have also weighed in on FDX. Rothschild & Co Redburn upped their target price on FedEx from $317.00 to $371.00 and gave the stock a "neutral" rating in a research report on Tuesday, February 24th. Stephens restated an "overweight" rating and set a $435.00 price objective on shares of FedEx in a report on Tuesday, April 14th. Wells Fargo & Company upgraded shares of FedEx from an "overweight" rating to an "overweight" rating in a report on Wednesday. Seaport Research Partners began coverage on shares of FedEx in a research report on Wednesday. They set a "buy" rating for the company. Finally, Wolfe Research lowered their target price on shares of FedEx from $427.00 to $423.00 and set an "outperform" rating on the stock in a report on Tuesday, April 7th. Eighteen investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, FedEx presently has a consensus rating of "Moderate Buy" and a consensus target price of $395.53.

FedEx Trading Down 19.1%

Shares of FedEx stock traded down $78.59 on Monday, hitting $333.16. 189,639 shares of the company's stock traded hands, compared to its average volume of 1,818,576. The company has a fifty day moving average of $376.41 and a two-hundred day moving average of $338.62. FedEx has a one year low of $214.82 and a one year high of $413.87. The company has a market capitalization of $79.50 billion, a price-to-earnings ratio of 17.73, a price-to-earnings-growth ratio of 1.57 and a beta of 1.28. 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 posted its quarterly earnings results on Thursday, March 19th. The shipping service provider reported $5.25 earnings per share for the quarter, beating the consensus estimate of $4.12 by $1.13. The firm had revenue of $24 billion during the quarter, compared to the consensus estimate 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% compared to the same quarter last year. During the same period in the previous year, the firm posted $4.51 earnings per share. As a group, sell-side analysts expect that FedEx will post 19.63 earnings per share for the current year.

Insider Activity at FedEx

In related news, EVP Kawal Preet sold 4,900 shares of the business's stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $367.89, for a total value of $1,802,661.00. Following the transaction, the executive vice president directly owned 10,953 shares of the company's stock, valued at approximately $4,029,499.17. The trade was a 30.91% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Susan C. Schwab sold 5,795 shares of the firm's stock in a transaction dated Wednesday, April 15th. The stock was sold at an average price of $369.00, for a total transaction of $2,138,355.00. Following the sale, the director owned 10,038 shares of the company's stock, valued at $3,704,022. This trade represents a 36.60% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 48,104 shares of company stock valued at $17,599,006 over the last quarter. Corporate insiders own 0.53% of the company's stock.

Institutional Investors Weigh In On FedEx

Several large investors have recently modified their holdings of FDX. Vanguard Group Inc. raised its stake in shares of FedEx by 13.2% in the third quarter. Vanguard Group Inc. now owns 23,442,049 shares of the shipping service provider's stock valued at $5,527,870,000 after buying an additional 2,741,723 shares during the period. Dodge & Cox increased its holdings in FedEx by 12.0% in the 3rd quarter. Dodge & Cox now owns 16,225,160 shares of the shipping service provider's stock worth $3,826,055,000 after acquiring an additional 1,742,666 shares during the last quarter. State Street Corp raised its stake in FedEx by 4.2% in the 4th quarter. State Street Corp now owns 9,521,691 shares of the shipping service provider's stock valued at $2,763,824,000 after acquiring an additional 382,848 shares during the period. Franklin Resources Inc. lifted its holdings in FedEx by 6.6% during the fourth quarter. Franklin Resources Inc. now owns 5,133,231 shares of the shipping service provider's stock valued at $1,482,785,000 after purchasing an additional 318,293 shares during the last quarter. Finally, Geode Capital Management LLC lifted its holdings in FedEx by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 4,985,778 shares of the shipping service provider's stock valued at $1,443,666,000 after purchasing an additional 45,818 shares during the last quarter. Hedge funds and other institutional investors own 84.47% of the company's stock.

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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