FedEx Corporation (NYSE:FDX) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• FedEx has a consensus rating of “Moderate Buy” from 29 analysts, with 18 buy ratings, 9 holds, and 2 sells. The average 1-year price target is about $400.69.
• Analysts are turning more optimistic ahead of the FedEx Freight spinoff, which is set to go live on June 1. Commentary suggests the separation could unlock value for the parent company by sharpening focus and simplifying the investment case.
• FedEx recently beat earnings expectations, reporting $5.25 EPS versus the $4.12 estimate and revenue of $24 billion, up 8.3% year over year. The stock was also trading near its 52-week high, reflecting improved investor sentiment.

Shares of FedEx Corporation (NYSE:FDX - Get Free Report) have been assigned an average rating of "Moderate Buy" from the twenty-nine research firms that are currently covering the stock, Marketbeat reports. Two research analysts have rated the stock with a sell recommendation, nine have assigned a hold recommendation and eighteen have issued a buy recommendation on the company. The average 1-year price target among analysts that have issued ratings on the stock in the last year is $400.6923.

Several analysts have commented on FDX shares. Bank of America lifted their price objective on shares of FedEx from $431.00 to $440.00 and gave the company a "buy" rating in a research note on Friday, March 20th. UBS Group started coverage on shares of FedEx in a research report on Wednesday. They set a "buy" rating and a $445.00 price objective for the company. Jefferies Financial Group upped their target price on shares of FedEx from $425.00 to $450.00 and gave the stock a "buy" rating in a report on Tuesday, March 3rd. HSBC raised shares of FedEx from a "reduce" rating to a "hold" rating and set a $360.00 price objective for the company in a report on Friday, March 20th. Finally, Wells Fargo & Company raised shares of FedEx from an "overweight" rating to an "overweight" rating in a report on Wednesday.

FedEx News Roundup

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: FedEx Freight’s spinoff is set to go live on June 1, and Wall Street commentary suggests the separation could unlock value for FedEx’s remaining business by sharpening its focus and simplifying the investment case. FedEx Freight (FDXF) Spinoff Goes Live June 1: Everything You Need to Know
• Positive Sentiment: JPMorgan reportedly turned constructive on FedEx ahead of the spinoff, saying the transaction could unlock more value for the parent company and supporting the stock as a buy idea. FedEx is a buy as freight business spinoff approaches, JPMorgan says
• Positive Sentiment: The new FedEx Freight company is expected to join major indexes quickly, including the S&P 500 and Dow Jones Transportation Average, which could create automatic index-related demand for the spun-off shares and reinforce investor attention on the separation. FedEx Freight Holding Set to Join Dow Jones Transportation Average
• Neutral Sentiment: Market coverage is also highlighting upcoming earnings and valuation debate around FedEx, with investors weighing whether the stock’s recent momentum can continue after the corporate restructuring.

FedEx Trading Up 0.2%

NYSE:FDX opened at $412.11 on Friday. FedEx has a one year low of $214.82 and a one year high of $413.87. The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.44 and a current ratio of 1.47. The firm has a market cap of $98.33 billion, a P/E ratio of 21.93, a P/E/G ratio of 1.57 and a beta of 1.29. The firm has a 50-day simple moving average of $376.41 and a 200-day simple moving average of $338.03.

FedEx (NYSE:FDX - Get Free Report) last posted its quarterly earnings results on Thursday, March 19th. The shipping service provider reported $5.25 EPS for the quarter, beating the consensus estimate of $4.12 by $1.13. FedEx had a net margin of 4.88% and a return on equity of 16.76%. The business had revenue of $24 billion during the quarter, compared to analyst estimates of $23.44 billion. During the same quarter in the previous year, the business posted $4.51 EPS. The company's quarterly revenue was up 8.3% compared to the same quarter last year. Equities analysts anticipate that FedEx will post 19.63 EPS for the current fiscal year.

Insider Activity at FedEx

In other news, EVP Kawal Preet sold 4,900 shares of the stock in a transaction dated 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 owned 10,953 shares of the company's stock, valued at approximately $4,029,499.17. This represents a 30.91% 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 the stock in a transaction dated Wednesday, April 15th. The stock was sold at an average price of $363.47, for a total transaction of $6,164,087.73. Following the sale, the executive vice president directly owned 11,052 shares in the company, valued at $4,017,070.44. This represents a 60.54% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 48,104 shares of company stock worth $17,599,006. 0.53% of the stock is owned by corporate insiders.

Institutional Trading of FedEx

Hedge funds have recently added to or reduced their stakes in the company. Brighton Jones LLC grew its position in shares of FedEx by 12.8% during the fourth quarter. Brighton Jones LLC now owns 1,825 shares of the shipping service provider's stock worth $514,000 after acquiring an additional 207 shares during the last quarter. Empowered Funds LLC lifted its holdings in FedEx by 78.9% in the first quarter. Empowered Funds LLC now owns 10,311 shares of the shipping service provider's stock valued at $2,514,000 after acquiring an additional 4,548 shares during the period. Sivia Capital Partners LLC acquired a new position in shares of FedEx during the 2nd quarter worth $586,000. Quantbot Technologies LP acquired a new position in shares of FedEx during the 2nd quarter worth $186,000. Finally, Jump Financial LLC acquired a new position in shares of FedEx during the 2nd quarter worth $456,000. Institutional investors and hedge funds own 84.47% of the company's stock.

FedEx Company Profile

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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