FedEx Corporation (FDX) - What Are Brokerages Thinking About This Stock?

Key Points

• Analyst sentiment is moderately bullish: Twenty-nine brokerages give FedEx a consensus “Moderate Buy” rating, with 17 buys, nine holds, two sells and one strong buy. The average 12-month price target is $353.84.
• FedEx shares opened at $300.67, with a $71.16 billion market capitalization and a 1.6% dividend yield based on its annualized $4.88 payout. The stock remains below its 200-day moving average of $337.21.
• Investors are focused on the company’s transition and freight outlook: FedEx named former AutoZone CFO Jamere Jackson as its incoming CFO, while the planned FedEx Freight spinoff faces pressure from weak less-than-truckload demand. Institutional investors own approximately 84.5% of the shares.

Shares of FedEx Corporation (NYSE:FDX - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the twenty-nine ratings firms that are presently covering the firm, Marketbeat reports. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating, seventeen have issued a buy rating and one has assigned a strong buy rating to the company. The average twelve-month price target among brokers that have issued a report on the stock in the last year is $353.84.

A number of research firms have commented on FDX. JPMorgan Chase & Co. reduced their price target on FedEx from $400.00 to $399.00 and set an "overweight" rating on the stock in a research report on Monday, October 5th. Weiss Ratings downgraded FedEx from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, September 2nd. Truist Financial cut their price objective on FedEx from $365.00 to $350.00 and set a "buy" rating on the stock in a research note on Wednesday, October 7th. Citizens Jmp began coverage on FedEx in a report on Wednesday, July 15th. They issued a "market outperform" rating and a $375.00 target price on the stock. Finally, Sanford C. Bernstein set a $377.00 target price on shares of FedEx in a research report on Monday.

FedEx Stock Performance

NYSE FDX opened at $300.67 on Tuesday. The company has a market capitalization of $71.16 billion, a price-to-earnings ratio of 16.24, a PEG ratio of 1.53 and a beta of 1.28. FedEx has a twelve month low of $195.44 and a twelve month high of $345.36. The stock has a fifty day simple moving average of $306.60 and a 200 day simple moving average of $337.21. The company has a quick ratio of 1.44, a current ratio of 1.48 and a debt-to-equity ratio of 0.74.

FedEx Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Monday, September 14th were given a $1.22 dividend. The ex-dividend date was Monday, September 14th. This represents a $4.88 dividend on an annualized basis and a dividend yield of 1.6%. FedEx's payout ratio is 26.36%.

More FedEx News

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: FedEx named Jamere Jackson, formerly AutoZone’s CFO, as executive vice president and CFO effective November 30. Investors may view his experience in financial management and profitable growth as a positive for FedEx’s post-spinoff strategy. He replaces interim CFO Claude Russ, who has held the role since June 1. FedEx Names Jamere Jackson as Executive Vice President and Chief Financial Officer
• Positive Sentiment: The CFO transition could increase investor confidence that FedEx will improve cash generation and return more capital through buybacks or dividends. Jackson will also help oversee the company’s seven-month transition period following the FedEx Freight spinoff. FedEx's CFO hiring could spark more cash returns to shareholders
• Positive Sentiment: USPS plans to introduce a weekly fuel surcharge in 2027 tied to diesel and jet-fuel prices, following practices already used by FedEx and UPS. The move could reduce pricing pressure from the postal service and make it easier for carriers to pass rising fuel costs to customers. USPS to debut weekly fuel fee in 2027, matching FedEx, UPS practices
• Neutral Sentiment: Jackson’s $2 million signing bonus underscores the importance FedEx places on recruiting a permanent finance leader, though the cost is modest relative to the company’s size and should not materially affect valuation. FedEx hires Jamere Jackson as CFO
• Negative Sentiment: Commentary on the FedEx Freight spinoff points to weak freight demand and a sharp decline in FedEx Freight Holding Company shares since a bullish thesis was published. Continued softness in less-than-truckload markets could challenge the standalone business and complicate FedEx’s transition, despite the potential for long-term value creation. FDXF vs. ODFL and XPO

Institutional Investors Weigh In On FedEx

Large investors have recently modified their holdings of the company. BlackRock Inc. acquired a new position in FedEx in the second quarter valued at $6,508,103,000. Primecap Management Co. CA bought a new stake in FedEx during the second quarter valued at $2,554,138,000. Dimensional Fund Advisors LP grew its holdings in FedEx by 2.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,630,669 shares of the shipping service provider's stock worth $936,688,000 after acquiring an additional 52,963 shares during the period. Bank of New York Mellon Corp grew its holdings in FedEx by 6.3% during the 1st quarter. Bank of New York Mellon Corp now owns 2,134,672 shares of the shipping service provider's stock worth $760,328,000 after acquiring an additional 125,950 shares during the period. Finally, Bank of America Corp DE acquired a new stake in FedEx during the 2nd quarter worth about $579,171,000. 84.47% of the stock is currently owned by institutional investors and hedge funds.

FedEx Company Profile

FedEx Corporation NYSE: FDX is a global transportation, e-commerce and business services company headquartered in Memphis, Tennessee. Through its operating companies, FedEx provides time-definite express delivery, ground shipping, freight transportation, customs brokerage, logistics and supply chain services for businesses, governments and consumers.

The company's services include domestic and international package delivery, less-than-truckload freight transportation, warehousing, fulfillment, supply chain management and specialized logistics solutions.

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