FedEx (NYSE:FDX) Sees Strong Trading Volume After Better-Than-Expected Earnings

Key Points

• FedEx reported stronger-than-expected earnings with an EPS of $3.83, surpassing the $3.71 estimate and achieving quarterly revenue of $22.20 billion against a forecast of $21.74 billion.
• The company announced a quarterly dividend of $1.45 per share, resulting in an annualized dividend of $5.80 and a yield of 2.5%.
• Several analysts have set new price targets for FedEx, ranging from $275 to $320, with an average target of $276.88, maintaining a consensus rating of "Moderate Buy."

FedEx Corporation (NYSE:FDX - Get Free Report) saw unusually-strong trading volume on Friday after the company announced better than expected quarterly earnings. Approximately 3,126,218 shares were traded during mid-day trading, an increase of 57% from the previous session's volume of 1,989,321 shares.The stock last traded at $232.10 and had previously closed at $226.50.

The shipping service provider reported $3.83 EPS for the quarter, topping analysts' consensus estimates of $3.71 by $0.12. The company had revenue of $22.20 billion during the quarter, compared to the consensus estimate of $21.74 billion. FedEx had a net margin of 4.65% and a return on equity of 16.33%. FedEx's revenue for the quarter was up 3.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $3.60 earnings per share. FedEx has set its FY 2026 guidance at 17.200-19.000 EPS.

FedEx Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Monday, September 8th will be paid a $1.45 dividend. This represents a $5.80 annualized dividend and a yield of 2.5%. The ex-dividend date is Monday, September 8th. FedEx's payout ratio is 33.86%.

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. Wolfe Research increased their price target on shares of FedEx from $244.00 to $254.00 and gave the company an "outperform" rating in a research report on Friday. Daiwa Capital Markets boosted their price objective on shares of FedEx from $232.00 to $240.00 and gave the stock a "neutral" rating in a research note on Monday. Jefferies Financial Group boosted their price objective on shares of FedEx from $275.00 to $280.00 and gave the stock a "buy" rating in a research note on Friday. Sanford C. Bernstein lifted their price target on shares of FedEx from $247.00 to $250.00 and gave the stock a "market perform" rating in a report on Monday. Finally, Bank of America lifted their price target on shares of FedEx from $240.00 to $244.00 and gave the stock a "neutral" rating in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $271.67.

Insider Transactions at FedEx

In other news, Director Marvin R. Ellison sold 3,610 shares of FedEx stock in a transaction on Wednesday, July 9th. The shares were sold at an average price of $236.94, for a total transaction of $855,353.40. Following the completion of the sale, the director directly owned 7,720 shares in the company, valued at approximately $1,829,176.80. The trade was a 31.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director R Brad Martin sold 2,123 shares of the firm's stock in a transaction on Monday, July 7th. The stock was sold at an average price of $241.75, for a total value of $513,235.25. Following the completion of the transaction, the director owned 8,935 shares of the company's stock, valued at $2,160,036.25. This trade represents a 19.20% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 9,343 shares of company stock worth $2,228,816. Company insiders own 0.53% of the company's stock.

Institutional Trading of FedEx

Hedge funds have recently modified their holdings of the stock. Golden State Wealth Management LLC boosted its stake in shares of FedEx by 21.1% during the 1st quarter. Golden State Wealth Management LLC now owns 362 shares of the shipping service provider's stock worth $88,000 after acquiring an additional 63 shares in the last quarter. Sage Capital Advisors llc lifted its holdings in FedEx by 136.5% during the second quarter. Sage Capital Advisors llc now owns 34,697 shares of the shipping service provider's stock valued at $7,887,000 after purchasing an additional 20,024 shares in the last quarter. Sivia Capital Partners LLC acquired a new position in shares of FedEx during the 2nd quarter worth about $586,000. Value Partners Investments Inc. raised its position in shares of FedEx by 26.4% during the 2nd quarter. Value Partners Investments Inc. now owns 181,454 shares of the shipping service provider's stock worth $41,247,000 after purchasing an additional 37,950 shares during the last quarter. Finally, NBC Securities Inc. acquired a new stake in shares of FedEx in the first quarter worth approximately $147,000. Hedge funds and other institutional investors own 84.47% of the company's stock.

FedEx Stock Up 2.1%

The company has a market cap of $55.46 billion, a PE ratio of 13.72, a price-to-earnings-growth ratio of 1.34 and a beta of 1.20. The company has a current ratio of 1.25, a quick ratio of 1.21 and a debt-to-equity ratio of 0.73. The business has a fifty day simple moving average of $228.77 and a two-hundred day simple moving average of $226.13.

About FedEx

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates through FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services segments. The FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; and time-critical transportation services.