FedEx (NYSE:FDX) Given New $378.00 Price Target at Bank of America

Key Points

• Bank of America raised FedEx’s price target from $376 to $378, implying about 21% upside from the prior close.
• FedEx’s latest quarterly results beat expectations, with EPS of $6.31 versus $5.91 expected and revenue of $25.01 billion versus $24.04 billion expected.
• Despite the solid quarter, investors are focused on weaker FY2027 EPS guidance and margin pressure, even as analysts overall still rate the stock a Moderate Buy.

FedEx (NYSE:FDX - Get Free Report) had its price target upped by equities researchers at Bank of America from $376.00 to $378.00 in a research note issued to investors on Wednesday,MarketScreener reports. Bank of America's target price would indicate a potential upside of 21.11% from the stock's previous close.

A number of other research analysts also recently issued reports on FDX. Truist Financial set a $155.00 price target on FedEx in a report on Tuesday, June 2nd. Citigroup reaffirmed a "buy" rating on shares of FedEx in a research note on Wednesday. BMO Capital Markets cut their target price on shares of FedEx from $410.00 to $340.00 and set a "market perform" rating for the company in a report on Monday, June 1st. Zacks Research cut shares of FedEx from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, March 18th. Finally, TD Cowen increased their price target on shares of FedEx from $383.00 to $426.00 and gave the stock a "buy" rating in a report on Friday, March 20th. Eighteen 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, the stock presently has an average rating of "Moderate Buy" and an average price target of $355.87.

FedEx Price Performance

Shares of FDX opened at $312.11 on Wednesday. The business's 50-day moving average is $366.57 and its two-hundred day moving average is $345.88. The company has a market capitalization of $74.47 billion, a P/E ratio of 16.61, a P/E/G ratio of 1.49 and a beta of 1.28. FedEx has a fifty-two week low of $172.88 and a fifty-two week high of $345.36. The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.44 and a current ratio of 1.47.

FedEx (NYSE:FDX - Get Free Report) last issued its quarterly earnings data on Tuesday, June 23rd. The shipping service provider reported $6.31 earnings per share (EPS) for the quarter, beating 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 business had revenue of $25.01 billion during the quarter, compared to analysts' expectations of $24.04 billion. During the same quarter in the previous year, the firm posted $6.07 EPS. The company's revenue for the quarter was up 12.5% on a year-over-year basis. FedEx has set its FY 2027 guidance at 16.900-18.100 EPS. Research analysts predict that FedEx will post 19.78 earnings per share for the current year.

Insider Activity at FedEx

In other news, EVP Gina F. Adams sold 20,450 shares of the business's stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $366.45, for a total transaction of $7,493,902.50. Following the completion of the sale, the executive vice president owned 19,403 shares of the company's stock, valued at $7,110,229.35. The trade was a 51.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 transaction, the executive vice president owned 10,953 shares of the company's stock, valued at approximately $4,029,499.17. This trade represents a 30.91% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 48,104 shares of company stock worth $17,599,006 in the last ninety days. 0.53% of the stock is owned by company insiders.

Hedge Funds Weigh In On FedEx

A number of hedge funds have recently made changes to their positions in the company. Hollencrest Capital Management acquired a new position in FedEx in the 1st quarter valued at $25,000. Bayban purchased a new stake in shares of FedEx during the first quarter worth $26,000. EFG International AG purchased a new stake in shares of FedEx during the fourth quarter worth $27,000. Wealth Watch Advisors INC acquired a new stake in shares of FedEx in the third quarter valued at about $28,000. Finally, Ameriflex Group Inc. lifted its stake in shares of FedEx by 103.3% in the third quarter. Ameriflex Group Inc. now owns 124 shares of the shipping service provider's stock worth $29,000 after buying an additional 63 shares in the last quarter. Institutional investors and hedge funds own 84.47% of the company's stock.

Key Headlines Impacting FedEx

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: FedEx posted a strong fiscal Q4 with revenue and EPS ahead of estimates, supported by higher package volumes and improved cash generation. FedEx Reports Strong Fourth Quarter and Full-Year Results
• Positive Sentiment: Management said its premium parcel strategy, cost cuts, and network optimization are helping improve the business after the FedEx Freight spinoff. FedEx Revenue Rises on Growth in Package Yields, Volume
• Neutral Sentiment: Analysts continue to view FedEx as fairly valued to moderately positive on longer-term fundamentals, though estimates vary widely. FDX Fairly Valued by DCF at $249
• Neutral Sentiment: Several notes framed the quarter as a transition period after the freight spinoff, with investors waiting to see how the standalone parcel business performs. FedEx posts strong earnings results in last quarter with freight business
• Negative Sentiment: FedEx shares are falling because its fiscal 2027 EPS guidance came in below expectations, raising concerns about earnings growth ahead. FedEx shares drop on weak profit forecast as Q4 results top estimates
• Negative Sentiment: Investors are also worried that FedEx’s adjusted operating margin declined, suggesting profitability pressure in the core delivery business after the freight spinoff. FedEx drops on margin hit as investors gauge freight spin-off fortunes

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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