FedEx Corporation (NYSE:FDX) Stock Now Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• FedEx has a “Moderate Buy” consensus from 29 analysts, with 17 buy, one strong-buy, nine hold and two sell ratings. The average 12-month price target is $354.72.
• FedEx completed the $1.4 billion sale of FedEx Supply Chain to CMA CGM, sharpening its focus on freight and parcel delivery while providing cash; however, investors may weigh the lost business against the proceeds.
• The company is pursuing efficiency and electrification initiatives, including a $300 million-plus order for 2,000 electric trucks, but faces near-term capital costs, limited catalysts and concerns about executing its broader transformation.

FedEx Corporation (NYSE:FDX - Get Free Report) has been assigned a consensus recommendation of "Moderate Buy" from the twenty-nine ratings firms that are currently covering the company, MarketBeat reports. Two analysts have rated the stock with a sell recommendation, nine have assigned a hold recommendation, seventeen have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month price objective among brokers that have covered the stock in the last year is $354.72.

A number of analysts have recently issued reports on FDX shares. Sanford C. Bernstein set a $397.00 target price on shares of FedEx in a research note on Wednesday, June 24th. BMO Capital Markets reiterated a "market perform" rating on shares of FedEx in a research note on Wednesday, June 24th. Stifel Nicolaus lowered their price target on shares of FedEx from $442.00 to $326.00 and set a "buy" rating on the stock in a report on Wednesday, June 24th. Evercore increased their price target on shares of FedEx from $350.00 to $351.00 in a report on Monday. Finally, Bank of America restated a "buy" rating and set a $140.00 price objective on shares of FedEx in a research report on Tuesday.

FedEx News Roundup

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: FedEx completed the sale of FedEx Supply Chain to CMA CGM Group for $1.4 billion. The divestiture should provide cash and allow FedEx to concentrate on its core freight transportation and parcel delivery operations. CMA CGM finalizes $1.4B acquisition of FedEx Supply Chain
• Positive Sentiment: Industry prospects are improving as freight conditions stabilize and transportation companies pursue cost reductions. Zacks identified FedEx as positioned to benefit from stronger air-freight and cargo demand. 3 Air-Freight & Cargo Stocks to Watch as Industry Prospects Improve
• Positive Sentiment: Evercore raised its FedEx price target to $351 from $350, implying substantial upside based on the cited reference price. BNP Paribas Exane also raised its target to $300 from $269.80, although it retained a neutral rating.
• Positive Sentiment: FedEx ordered 2,000 electric trucks from Harbinger in a deal valued at more than $300 million. The fleet expansion could reduce fuel and maintenance costs over time and advances FedEx’s electrification strategy, with deliveries planned through the end of 2027. FedEx orders 2,000 electric trucks from Harbinger in $300M deal
• Neutral Sentiment: The sale of the supply-chain unit improves strategic focus, but investors may weigh the loss of that business’s future revenue and earnings against the $1.4 billion proceeds.
• Negative Sentiment: The $300 million electric-truck purchase represents significant near-term capital spending before efficiency benefits are realized.
• Negative Sentiment: TCW Funds disclosed that it exited FedEx, citing market-integration challenges. The decision may reinforce concerns about FedEx’s ability to execute its transformation and compete effectively. This Fund Exited FedEx Corp. (FDX) Due to Dense Market Integration Challenges
• Negative Sentiment: One market commentary said FedEx still lacks a clear near-term catalyst, which could limit buying interest despite the higher price targets. Broader warnings about strained U.S. trucking and supply-chain infrastructure also highlight operating risks for the transportation sector. FedEx Still Lacks A Clear Near-Term Catalyst

FedEx Stock Performance

FDX opened at $286.70 on Friday. FedEx has a 12-month low of $179.69 and a 12-month high of $345.36. The stock has a market cap of $67.85 billion, a price-to-earnings ratio of 15.49, a PEG ratio of 1.52 and a beta of 1.28. The business has a 50 day moving average of $314.00 and a 200-day moving average of $338.86. 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 (NYSE:FDX - Get Free Report) last released its quarterly earnings data on Tuesday, July 21st. The shipping service provider reported $5.88 EPS for the quarter. FedEx had a net margin of 4.68% and a return on equity of 16.49%. The firm had revenue of $23.26 billion during the quarter. On average, equities research analysts expect that FedEx will post 17.55 earnings per share for the current year.

FedEx Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Monday, September 14th were paid a dividend of $1.22 per share. The ex-dividend date was Monday, September 14th. This represents a $4.88 dividend on an annualized basis and a dividend yield of 1.7%. FedEx's dividend payout ratio (DPR) is 26.36%.

Institutional Trading of FedEx

Several institutional investors have recently added to or reduced their stakes in FDX. Hollencrest Capital Management acquired a new stake in shares of FedEx during the first quarter worth $25,000. Bayban acquired a new position in shares of FedEx in the first quarter valued at about $26,000. Solstein Capital LLC acquired a new position in shares of FedEx in the second quarter valued at about $27,000. C M Bidwell & Associates Ltd. bought a new position in FedEx during the second quarter worth about $31,000. Finally, Cedar Mountain Advisors LLC raised its stake in FedEx by 77.4% in the 1st quarter. Cedar Mountain Advisors LLC now owns 94 shares of the shipping service provider's stock worth $33,000 after purchasing an additional 41 shares in the last quarter. 84.47% of the stock is currently owned by institutional investors.

About FedEx

FedEx Corporation 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, and logistics services for businesses, government organizations and consumers.

The company's services include domestic and international parcel delivery, less-than-truckload freight transportation, supply chain management, customs and trade assistance, warehousing, fulfillment and other logistics solutions.

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