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

Key Points

• FedEx has a Moderate Buy consensus from 30 analysts, with the average 1-year price target at about $350.54.
• The company recently posted better-than-expected earnings, reporting $6.31 EPS versus $5.91 expected and revenue of $25.01 billion versus $24.04 billion expected, with revenue up 12.5% year over year.
• FedEx also announced a quarterly dividend of $1.22 per share and paid it on July 7, implying an annualized dividend of $4.88 and a yield of 1.6%.

FedEx Corporation (NYSE:FDX - Get Free Report) has been given an average rating of "Moderate Buy" by the thirty analysts that are currently covering the stock, MarketBeat.com reports. Two analysts have rated the stock with a sell recommendation, nine have given a hold recommendation, eighteen have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year target price among brokers that have issued ratings on the stock in the last year is $350.5426.

FDX has been the subject of a number of recent research reports. Jefferies Financial Group began coverage on shares of FedEx in a research report on Tuesday, June 23rd. They set a "buy" rating and a $200.00 price target for the company. Deutsche Bank Aktiengesellschaft lowered shares of FedEx from a "buy" rating to a "hold" rating in a research note on Wednesday, May 27th. Wall Street Zen raised shares of FedEx from a "buy" rating to a "strong-buy" rating in a report on Saturday, June 6th. HSBC lowered their price target on shares of FedEx from $360.00 to $289.89 and set a "hold" rating on the stock in a report on Monday, June 1st. Finally, Stifel Nicolaus cut their price target on FedEx from $442.00 to $326.00 and set a "buy" rating on the stock in a research report on Wednesday, June 24th.

Insider Buying and Selling

In related news, Director Paul S. Walsh sold 5,042 shares of FedEx stock in a transaction that occurred on Tuesday, June 30th. The stock was sold at an average price of $324.56, for a total transaction of $1,636,431.52. Following the completion of the transaction, the director directly owned 16,359 shares in the company, valued at approximately $5,309,477.04. This trade represents a 23.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.53% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On FedEx

A number of hedge funds and other institutional investors have recently made changes to their positions in FDX. State Street Corp boosted its holdings in FedEx by 4.2% during the fourth quarter. State Street Corp now owns 9,521,691 shares of the shipping service provider's stock worth $2,763,824,000 after buying an additional 382,848 shares in the last quarter. Franklin Resources Inc. increased its holdings in FedEx by 6.6% in 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 buying an additional 318,293 shares in the last quarter. Geode Capital Management LLC raised its position in shares of FedEx by 0.9% in the fourth quarter. Geode Capital Management LLC now owns 4,985,778 shares of the shipping service provider's stock worth $1,443,666,000 after acquiring an additional 45,818 shares during the period. Invesco Ltd. raised its position in shares of FedEx by 3.1% in the third quarter. Invesco Ltd. now owns 3,618,898 shares of the shipping service provider's stock worth $853,372,000 after acquiring an additional 108,426 shares during the period. Finally, Norges Bank purchased a new stake in shares of FedEx during the 4th quarter worth about $859,085,000. Institutional investors and hedge funds own 84.47% of the company's stock.

FedEx Stock Down 1.6%

Shares of FDX stock opened at $313.17 on Friday. FedEx has a fifty-two week low of $172.88 and a fifty-two week high of $345.36. The firm has a market capitalization of $74.72 billion, a PE ratio of 16.92, a P/E/G ratio of 1.95 and a beta of 1.29. The company has a debt-to-equity ratio of 0.74, a quick ratio of 1.44 and a current ratio of 1.48. The stock's 50-day simple moving average is $342.12 and its 200-day simple moving average is $349.22.

FedEx (NYSE:FDX - Get Free Report) last released its earnings results on Tuesday, June 23rd. The shipping service provider reported $6.31 EPS for the quarter, topping analysts' consensus estimates of $5.91 by $0.40. The firm had revenue of $25.01 billion during the quarter, compared to the consensus estimate of $24.04 billion. FedEx had a return on equity of 16.49% and a net margin of 4.68%.The company's revenue was up 12.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $6.07 earnings per share. FedEx has set its FY 2027 guidance at 16.900-18.100 EPS. Equities analysts expect that FedEx will post 17.6 earnings per share for the current year.

FedEx Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, July 7th. Stockholders of record on Monday, June 22nd were paid a $1.22 dividend. The ex-dividend date was Monday, June 22nd. This represents a $4.88 dividend on an annualized basis and a dividend yield of 1.6%. FedEx's dividend payout ratio is presently 26.36%.

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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