FedEx Corporation (NYSE:FDX) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• FedEx currently has a consensus analyst rating of “Moderate Buy”, with 18 buy ratings, 9 holds, and 2 sells among 29 brokerages. The average one-year price target is about $358.14.
• The company reported a strong fiscal Q4, beating expectations with EPS of $6.31 and revenue of $25.01 billion, both above estimates and up year over year. Improved package yields, volume, and operating cash flow were key positives.
• Despite the earnings beat, FedEx shares fell after the company issued fiscal 2027 EPS guidance of $16.90 to $18.10, which was below Wall Street expectations. The stock also faced pressure from recent insider selling and broader market risk-off sentiment.

Shares of FedEx Corporation (NYSE:FDX - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the twenty-nine brokerages that are presently covering the stock, Marketbeat.com reports. Two investment analysts have rated the stock with a sell recommendation, nine have issued a hold recommendation and eighteen have issued a buy recommendation on the company. The average 1 year price objective among brokerages that have issued a report on the stock in the last year is $358.1404.

FDX has been the subject of a number of research reports. Rothschild & Co Redburn lowered their target price on FedEx from $375.00 to $344.00 and set a "neutral" rating for the company in a research note on Tuesday, June 2nd. BNP Paribas Exane lowered their target price on FedEx from $335.00 to $269.76 and set a "neutral" rating for the company in a research note on Tuesday, June 2nd. HSBC lowered their target price on FedEx from $360.00 to $289.89 and set a "hold" rating for the company in a research note on Monday, June 1st. Wells Fargo & Company lowered their target price on FedEx from $450.00 to $425.00 and set an "overweight" rating for the company in a research note on Wednesday, June 17th. Finally, JPMorgan Chase & Co. upgraded FedEx from a "neutral" rating to an "overweight" rating and raised their target price for the company from $432.00 to $460.00 in a research note on Wednesday, May 27th.

FedEx News Roundup

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: FedEx beat fiscal Q4 earnings and revenue estimates, with EPS of $6.31 to $6.60 and revenue around $25.0 billion, helped by stronger package yields and volume. FedEx Reports Strong Fourth Quarter and Full-Year Results
• Positive Sentiment: Operating cash flow improved sharply, suggesting better cash generation and supporting the company’s cost-cutting and post-spin-off restructuring plan. FedEx Revenue Rises on Growth in Package Yields, Volume
• Neutral Sentiment: Management said the growth strategy is working and highlighted the impact of the FedEx Freight spin-off on network optimization and cost reductions. FedEx posts strong earnings results in last quarter with freight business
• Negative Sentiment: Despite the quarterly beat, shares fell because fiscal 2027 EPS guidance of $16.90 to $18.10 came in below Wall Street expectations, raising concern that profit growth may slow. FedEx shares drop on weak profit forecast as Q4 results top estimates
• Negative Sentiment: FedEx also traded against a broader risk-off market backdrop, with tech weakness and weaker futures adding pressure to sentiment around the stock. Dow Jones Futures: Nasdaq Breaks Support; FedEx, Cerebras Tumble Late With Micron Due

Insider Transactions at FedEx

In related news, EVP Gina F. Adams sold 20,450 shares of FedEx stock in a transaction dated Tuesday, April 14th. The stock was sold at an average price of $366.45, for a total value of $7,493,902.50. Following the completion of the sale, the executive vice president directly owned 19,403 shares in the company, valued at $7,110,229.35. This trade represents a 51.31% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Tracy B. Brightman sold 16,959 shares of FedEx stock in a transaction dated Wednesday, April 15th. The stock was sold at an average price of $363.47, for a total value of $6,164,087.73. Following the completion of the sale, the executive vice president 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. The disclosure for this sale is available in the SEC filing. Insiders have sold 48,104 shares of company stock valued at $17,599,006 in the last three months. Company insiders own 0.53% of the company's stock.

Institutional Trading of FedEx

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Hollencrest Capital Management acquired a new stake in FedEx in the first quarter worth about $25,000. Bayban acquired a new stake in FedEx in the first quarter worth about $26,000. Cedar Mountain Advisors LLC increased its position in FedEx by 77.4% in the first 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 during the period. EFG International AG bought a new position in FedEx during the fourth quarter worth about $27,000. Finally, Ulland Investment Advisors LLC bought a new position in FedEx during the fourth quarter worth about $29,000. 84.47% of the stock is currently owned by institutional investors and hedge funds.

FedEx Stock Performance

FedEx stock opened at $319.06 on Wednesday. The company has a debt-to-equity ratio of 0.77, a current ratio of 1.47 and a quick ratio of 1.44. The stock has a fifty day moving average price of $366.57 and a two-hundred day moving average price of $345.88. FedEx has a 52-week low of $172.88 and a 52-week high of $345.36. The firm has a market capitalization of $76.13 billion, a P/E ratio of 16.98, a P/E/G ratio of 1.49 and a beta of 1.28.

FedEx (NYSE:FDX - Get Free Report) last released its quarterly earnings data on Tuesday, June 23rd. The shipping service provider reported $6.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.91 by $0.40. FedEx had a return on equity of 16.76% and a net margin of 4.88%.The firm had revenue of $25.01 billion during the quarter, compared to analyst estimates of $24.04 billion. During the same period in the prior year, the company posted $6.07 earnings per share. The business's revenue for the quarter was up 12.5% compared to the same quarter last year. FedEx has set its FY 2027 guidance at 16.900-18.100 EPS. As a group, analysts anticipate that FedEx will post 19.78 EPS for the current fiscal year.

FedEx Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, July 7th. Stockholders of record on Monday, June 22nd will be paid a $1.22 dividend. The ex-dividend date is Monday, June 22nd. This represents a $4.88 dividend on an annualized basis and a dividend yield of 1.5%. FedEx's dividend payout ratio (DPR) is 25.97%.

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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