FedEx (NYSE:FDX) Given New $344.00 Price Target at Rothschild & Co Redburn

Key Points

• Rothschild & Co Redburn cut FedEx’s price target to $344 from $375 and kept a neutral rating, implying only modest upside from the prior close.
• FedEx shares fell sharply in Tuesday trading, dropping about 20% to $329.29, even as the company’s latest quarter beat earnings and revenue estimates.
• The article highlights mixed Wall Street sentiment overall: some firms raised targets or kept buy ratings, but others lowered targets after the recent FedEx Freight spin-off, which is now a separate publicly traded company.

FedEx (NYSE:FDX - Get Free Report) had its price objective reduced by equities research analysts at Rothschild & Co Redburn from $375.00 to $344.00 in a report issued on Tuesday,MarketScreener reports. The firm presently has a "neutral" rating on the shipping service provider's stock. Rothschild & Co Redburn's price objective suggests a potential upside of 4.47% from the company's previous close.

FDX has been the topic of several other reports. Susquehanna lifted their price target on shares of FedEx from $410.00 to $455.00 and gave the stock a "positive" rating in a research note on Friday, March 20th. TD Cowen raised their price objective on FedEx from $383.00 to $426.00 and gave the stock a "buy" rating in a report on Friday, March 20th. BMO Capital Markets cut their target price on FedEx from $410.00 to $340.00 and set a "market perform" rating on the stock in a research report on Monday. Wells Fargo & Company upgraded FedEx from an "overweight" rating to an "overweight" rating in a research note on Wednesday, May 27th. Finally, BNP Paribas Exane cut their price target on FedEx from $335.00 to $269.76 and set a "neutral" rating on the stock in a research report on Tuesday. Eighteen equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $383.72.

FedEx Stock Down 20.0%

Shares of FDX traded down $82.46 during mid-day trading on Tuesday, reaching $329.29. The company's stock had a trading volume of 2,398,089 shares, compared to its average volume of 1,615,251. The company has a debt-to-equity ratio of 0.77, a current ratio of 1.47 and a quick ratio of 1.44. FedEx has a 12-month low of $214.82 and a 12-month high of $413.87. The stock has a market cap of $78.57 billion, a PE ratio of 17.83, a price-to-earnings-growth ratio of 1.57 and a beta of 1.28. The company's 50 day moving average is $376.08 and its 200 day moving average is $339.12.

FedEx (NYSE:FDX - Get Free Report) last announced its quarterly earnings results on Thursday, March 19th. The shipping service provider reported $5.25 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.12 by $1.13. FedEx had a return on equity of 16.76% and a net margin of 4.88%.The firm had revenue of $24 billion during the quarter, compared to the consensus estimate of $23.44 billion. During the same period in the prior year, the company posted $4.51 earnings per share. The firm'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

In other FedEx news, EVP Gina F. Adams sold 20,450 shares of the business's stock in a transaction on Tuesday, April 14th. The stock was sold at an average price of $366.45, for a total transaction of $7,493,902.50. Following the completion of the transaction, the executive vice president owned 19,403 shares in the company, valued at approximately $7,110,229.35. The trade was a 51.31% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Kawal Preet sold 4,900 shares of the company's stock in a transaction dated Tuesday, April 14th. The stock was sold at an average price of $367.89, for a total transaction of $1,802,661.00. Following the completion of the sale, the executive vice president directly owned 10,953 shares of the company's stock, valued at $4,029,499.17. The trade was a 30.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 48,104 shares of company stock valued at $17,599,006 in the last 90 days. Company insiders own 0.53% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Norges Bank bought a new stake in FedEx in the fourth quarter worth about $859,085,000. Vanguard Group Inc. lifted its stake in FedEx by 13.2% during the third quarter. Vanguard Group Inc. now owns 23,442,049 shares of the shipping service provider's stock valued at $5,527,870,000 after purchasing an additional 2,741,723 shares during the last quarter. Boston Partners bought a new stake in FedEx during the third quarter worth approximately $468,195,000. Dodge & Cox grew its position in FedEx by 12.0% in the third quarter. Dodge & Cox now owns 16,225,160 shares of the shipping service provider's stock worth $3,826,055,000 after buying an additional 1,742,666 shares during the last quarter. Finally, AQR Capital Management LLC increased its holdings in shares of FedEx by 169.2% in the third quarter. AQR Capital Management LLC now owns 2,733,905 shares of the shipping service provider's stock valued at $638,203,000 after buying an additional 1,718,278 shares in the last quarter. Institutional investors and hedge funds own 84.47% of the company's stock.

Key FedEx News

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: FedEx completed the spin-off of FedEx Freight, creating a separate publicly traded LTL carrier that could unlock value and let both businesses pursue more focused strategies. FedEx Completes Spin-Off of FedEx Freight
• Positive Sentiment: FedEx Freight management said the standalone company can invest more aggressively in growth and aims to reach a 15% operating margin by 2029, which supports the long-term value case for the restructuring. FedEx Freight CEO says the spinoff will help the company 'leapfrog' competitors
• Positive Sentiment: FedEx still has support from some analysts after the split, with Goldman Sachs maintaining a Buy rating even after trimming its target price. Goldman Sachs adjusts price target on FedEx
• Neutral Sentiment: FedEx Freight began trading independently under ticker FDXF, and coverage focused on how investors may value the new entity versus the remaining parent. FedEx Freight Stock Starts Trading June 1
• Neutral Sentiment: Several articles frame the move as a strategic transformation and discuss future earnings potential, but they do not point to an immediate operational change for FedEx itself. Why FedEx Stock Just Dropped
• Negative Sentiment: Analysts cut price targets after the spin-off, including HSBC lowering its target to $289.89 and BMO cutting to $340, signaling concerns that the parent stock may have less upside after the separation. HSBC adjusts price target on FedEx

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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