FedEx (NYSE:FDX) Shares Gap Down After Analyst Downgrade

Key Points

• FedEx shares gapped down after HSBC cut its price target sharply to $289.89 from $360 and maintained a hold rating, sending the stock to open well below its previous close.
• Other analysts remain more constructive overall: UBS initiated coverage with a buy rating, while Goldman Sachs, Stephens, and Bank of America all kept bullish views despite some target reductions. MarketBeat still shows a Moderate Buy consensus and a $395.53 average price target.
• Investor focus is also on recent corporate and insider activity, including the FedEx Freight spin-off and multiple insider share sales over the past 90 days, which may add to near-term uncertainty around the stock.

FedEx Corporation (NYSE:FDX - Get Free Report) shares gapped down before the market opened on Monday after HSBC lowered their price target on the stock from $360.00 to $289.89. The stock had previously closed at $411.75, but opened at $325.01. HSBC currently has a hold rating on the stock. FedEx shares last traded at $333.1150, with a volume of 189,639 shares traded.

Other equities analysts also recently issued research reports about the stock. UBS Group assumed coverage on shares of FedEx in a report on Wednesday. They issued a "buy" rating and a $445.00 price target on the stock. The Goldman Sachs Group cut their price objective on shares of FedEx from $405.00 to $375.00 and set a "buy" rating on the stock in a research note on Monday. Stephens reissued an "overweight" rating and set a $435.00 target price on shares of FedEx in a report on Tuesday, April 14th. Bank of America boosted their target price on shares of FedEx from $431.00 to $440.00 and gave the company a "buy" rating in a research report on Friday, March 20th. Finally, Barclays raised shares of FedEx from an "overweight" rating to an "overweight" rating in a report on Wednesday. Eighteen research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, FedEx currently has a consensus rating of "Moderate Buy" and a consensus price target of $395.53.

Insiders Place Their Bets

In other news, EVP Kawal Preet sold 4,900 shares of the company's stock in a transaction that occurred on 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 transaction, the executive vice president directly owned 10,953 shares of the company's stock, valued at $4,029,499.17. This represents a 30.91% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, Director Susan C. Schwab sold 5,795 shares of the stock in a transaction that occurred on Wednesday, April 15th. The shares were sold at an average price of $369.00, for a total value of $2,138,355.00. Following the transaction, the director owned 10,038 shares in the company, valued at $3,704,022. This trade represents a 36.60% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 48,104 shares of company stock valued at $17,599,006 over the last ninety days. 0.53% of the stock is owned by corporate insiders.

Key Stories Impacting FedEx

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: FedEx completed the spin-off of FedEx Freight, turning it into an independent, publicly traded company. The move may unlock value and sharpen FedEx’s focus on its core parcel and express operations. FedEx Completes Spin-Off of FedEx Freight
• Positive Sentiment: FedEx Freight began trading separately on the NYSE under ticker FDXF, and the new standalone listing may attract investor attention to the freight business while simplifying FedEx’s overall structure. FedEx Freight Completes Spinoff, Joins S&P 500, Dow Jones Transport Indexes
• Positive Sentiment: Goldman Sachs lowered its price target to $375 from $405 but kept a buy rating, implying meaningful upside from current levels. Goldman Sachs Adjusts Price Target on FedEx to 375 from 405 Maintains Buy Rating
• Neutral Sentiment: FedEx also announced a trucking hub expansion in the Netherlands, supporting its air cargo strategy, but the near-term stock impact is likely limited. FedEx trucking hub expansion in Netherlands aids new air cargo strategy
• Neutral Sentiment: BMO Capital Markets cut its target to $340 from $410 and kept a market perform rating, signaling a more cautious but not outright bearish view. BMO Capital Adjusts FedEx Price Target to 340 from 410 Maintains Market Perform Rating
• Negative Sentiment: HSBC cut its price target sharply to $289.89 from $360 and kept a hold rating, reflecting a more bearish near-term valuation outlook for FDX. HSBC Adjusts Price Target on FedEx to 289.89 from 360 Maintains Hold Rating

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of FDX. Asset Dedication LLC boosted its holdings in FedEx by 60.7% in the 1st quarter. Asset Dedication LLC now owns 450 shares of the shipping service provider's stock worth $160,000 after buying an additional 170 shares during the last quarter. Groupama Asset Managment raised its holdings in shares of FedEx by 9.2% during the first quarter. Groupama Asset Managment now owns 3,554 shares of the shipping service provider's stock valued at $1,266,000 after acquiring an additional 299 shares during the last quarter. Segall Bryant & Hamill LLC purchased a new position in shares of FedEx in the first quarter valued at approximately $455,000. CTC Alternative Strategies Ltd. purchased a new position in shares of FedEx in the first quarter valued at approximately $285,000. Finally, Western Wealth Management LLC boosted its stake in shares of FedEx by 186.1% in the first quarter. Western Wealth Management LLC now owns 4,840 shares of the shipping service provider's stock worth $1,724,000 after acquiring an additional 3,148 shares during the last quarter. Institutional investors and hedge funds own 84.47% of the company's stock.

FedEx Price Performance

The company has a 50-day moving average of $376.41 and a 200 day moving average of $338.62. The company has a quick ratio of 1.44, a current ratio of 1.47 and a debt-to-equity ratio of 0.77. The stock has a market capitalization of $79.71 billion, a PE ratio of 17.78, a PEG ratio of 1.57 and a beta of 1.28.

FedEx (NYSE:FDX - Get Free Report) last announced its quarterly earnings data on Thursday, March 19th. The shipping service provider reported $5.25 earnings per share for the quarter, beating analysts' consensus estimates of $4.12 by $1.13. The company had revenue of $24 billion for the quarter, compared to analyst estimates of $23.44 billion. FedEx had a return on equity of 16.76% and a net margin of 4.88%.The firm's revenue for the quarter was up 8.3% on a year-over-year basis. During the same quarter last year, the firm posted $4.51 EPS. Sell-side analysts predict that FedEx Corporation will post 19.63 EPS for the current year.

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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