FedEx (NYSE:FDX) Shares Gap Down - Here's What Happened

Key Points

• Shares gapped down premarket Monday, opening at $379.50 after a $393.67 close and last trading around $367.91 on a volume of 687,178 shares.
• Quarterly beat and analyst optimism: FedEx reported $5.25 EPS vs. $4.12 expected and $24B revenue (+8.3% YoY), and analysts largely raised targets — the consensus rating is "Moderate Buy" with an average target of $398.04.
• Corporate actions: FedEx paid a $1.45 quarterly dividend (1.6% yield), insiders sold 48,104 shares (~$17.6M) over the past 90 days, and institutional investors hold about 84.47% of the stock.

Shares of FedEx Corporation (NYSE:FDX - Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $393.67, but opened at $379.50. FedEx shares last traded at $367.91, with a volume of 687,178 shares.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on FDX. Zacks Research lowered FedEx from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, March 18th. Truist Financial increased their price target on FedEx from $400.00 to $425.00 and gave the stock a "buy" rating in a research note on Friday, March 20th. Wells Fargo & Company increased their price target on FedEx from $430.00 to $450.00 and gave the stock an "overweight" rating in a research note on Friday, March 20th. Raymond James Financial increased their price target on FedEx from $305.00 to $410.00 and gave the stock an "outperform" rating in a research note on Friday, February 13th. Finally, HSBC upgraded FedEx from a "reduce" rating to a "hold" rating and set a $360.00 price target for the company in a research note on Friday, March 20th. Eighteen analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $398.04.

FedEx Price Performance

The firm's fifty day simple moving average is $370.95 and its 200 day simple moving average is $320.19. The firm has a market cap of $85.81 billion, a P/E ratio of 19.16, a P/E/G ratio of 1.49 and a beta of 1.29. 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 released its quarterly earnings data on Thursday, March 19th. The shipping service provider reported $5.25 EPS for the quarter, beating the consensus estimate of $4.12 by $1.13. FedEx had a net margin of 4.88% and a return on equity of 16.76%. The business had revenue of $24 billion during the quarter, compared to the consensus estimate of $23.44 billion. During the same quarter in the prior year, the firm earned $4.51 EPS. The business's revenue was up 8.3% on a year-over-year basis. As a group, analysts forecast that FedEx Corporation will post 19.72 earnings per share for the current year.

FedEx Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 1st. Shareholders of record on Monday, March 9th were issued a dividend of $1.45 per share. This represents a $5.80 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend was Monday, March 9th. FedEx's dividend payout ratio is 30.87%.

Insider Activity at FedEx

In other FedEx news, Director Susan C. Schwab sold 5,795 shares of the stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $369.00, for a total transaction of $2,138,355.00. Following the completion of the transaction, the director owned 10,038 shares of the company's stock, valued at $3,704,022. This represents a 36.60% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Gina F. Adams sold 20,450 shares of the 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 transaction, the executive vice president directly owned 19,403 shares of the company's stock, valued at $7,110,229.35. This trade represents a 51.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 48,104 shares of company stock worth $17,599,006 over the last 90 days. Company insiders own 0.53% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in FDX. Brighton Jones LLC lifted its holdings in shares of FedEx by 12.8% in the 4th quarter. Brighton Jones LLC now owns 1,825 shares of the shipping service provider's stock valued at $514,000 after acquiring an additional 207 shares during the last quarter. Empowered Funds LLC lifted its holdings in shares of FedEx by 78.9% in the 1st quarter. Empowered Funds LLC now owns 10,311 shares of the shipping service provider's stock valued at $2,514,000 after acquiring an additional 4,548 shares during the last quarter. Sivia Capital Partners LLC bought a new position in shares of FedEx in the 2nd quarter valued at about $586,000. Quantbot Technologies LP bought a new position in shares of FedEx in the 2nd quarter valued at about $186,000. Finally, Jump Financial LLC bought a new position in shares of FedEx in the 2nd quarter valued at about $456,000. Institutional investors own 84.47% of the company's stock.

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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