FedEx (NYSE:FDX) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded FedEx from “buy” to “strong-buy,” adding to a generally positive analyst backdrop for the stock.
• Other firms remain mixed: Deutsche Bank recently cut FedEx to hold, while the overall consensus still stands at Moderate Buy with a target price of about $372.41.
• FedEx posted a strong quarter, beating EPS and revenue estimates with $5.25 EPS on $24 billion in revenue, while investors are also watching the new FedEx Freight spinoff as a potential value catalyst.

FedEx (NYSE:FDX - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "buy" rating to a "strong-buy" rating in a research note issued on Saturday.

Several other brokerages have also recently issued reports on FDX. Deutsche Bank Aktiengesellschaft cut FedEx from a "buy" rating to a "hold" rating in a report on Wednesday, May 27th. Stifel Nicolaus boosted their price objective on FedEx from $425.00 to $442.00 in a report on Friday, April 10th. Stephens reissued an "overweight" rating and issued a $435.00 price objective on shares of FedEx in a report on Tuesday, April 14th. Truist Financial set a $155.00 price objective on FedEx in a report on Tuesday. Finally, Raymond James Financial began coverage on FedEx in a research note on Wednesday. They issued an "outperform" rating and a $180.00 price target for the company. Eighteen research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $372.41.

FedEx Stock Performance

Shares of FDX opened at $331.59 on Friday. The stock has a 50-day moving average of $373.71 and a two-hundred day moving average of $340.31. FedEx has a one year low of $172.88 and a one year high of $341.14. The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.44 and a current ratio of 1.47. The stock has a market cap of $79.12 billion, a P/E ratio of 17.65, a P/E/G ratio of 1.49 and a beta of 1.28.

FedEx (NYSE:FDX - Get Free Report) last issued its quarterly earnings data on Thursday, March 19th. The shipping service provider reported $5.25 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.12 by $1.13. The business had revenue of $24 billion during the quarter, compared to analysts' expectations of $23.44 billion. FedEx had a return on equity of 16.76% and a net margin of 4.88%.The company's revenue for the quarter was up 8.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $4.51 EPS. As a group, research analysts predict that FedEx will post 19.72 EPS for the current year.

Insiders Place Their Bets

In related news, 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 value of $1,802,661.00. Following the completion of the transaction, the executive vice president owned 10,953 shares of the company's stock, valued at approximately $4,029,499.17. This represents a 30.91% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Gina F. Adams sold 20,450 shares of the company's stock in a transaction dated Tuesday, April 14th. The stock was sold at an average price of $366.45, for a total value of $7,493,902.50. Following the completion of the transaction, the executive vice president directly owned 19,403 shares of the company's stock, valued at $7,110,229.35. The trade was a 51.31% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 48,104 shares of company stock worth $17,599,006. 0.53% of the stock is owned by company insiders.

Institutional Investors Weigh In On FedEx

Several large investors have recently bought and sold shares of the company. Norges Bank purchased a new stake in shares of FedEx in the fourth quarter valued at approximately $859,085,000. Vanguard Group Inc. grew its position in shares of FedEx by 13.2% in 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 in the last quarter. Boston Partners purchased a new stake in shares of FedEx in the third quarter valued at approximately $468,195,000. Dodge & Cox grew its position in shares of FedEx by 12.0% in the third quarter. Dodge & Cox now owns 16,225,160 shares of the shipping service provider's stock valued at $3,826,055,000 after purchasing an additional 1,742,666 shares in the last quarter. Finally, AQR Capital Management LLC grew its position 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 purchasing an additional 1,718,278 shares in the last quarter. 84.47% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting FedEx

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: FedEx Freight’s debut as a separate company drew fresh analyst coverage and upbeat commentary, with some observers calling it a potential “true winner” and a catalyst for value creation at FedEx. FedEx Freight Stock (FDXF) Soars on Fresh Analyst Coverage
• Positive Sentiment: Analysts and market commentators said the spinoff may help FedEx streamline operations and fully launch its Network 2.0 initiative, which could improve margins and long-term earnings power. Is FedEx a Buy Following Its FedEx Freight Spinoff?
• Positive Sentiment: Jim Cramer highlighted the new breakup of FedEx as a long-awaited move that could be viewed favorably by investors looking for a cleaner, more focused company structure. Why Jim Cramer Says Newly Public FedEx Freight Stock Could Be a ‘True Winner’
• Neutral Sentiment: FedEx has recently outperformed some industrial peers, but commentary remains mixed, with valuation concerns and conflicting analyst views keeping enthusiasm in check. FedEx Stock: Is FDX Outperforming the Industrial Sector?
• Negative Sentiment: One FreightWaves report said a FedEx partner airline may face service risk on Caribbean routes without an FAA waiver, which could raise operational uncertainty for parts of the cargo network. FedEx partner airline says Caribbean service at risk without FAA waiver

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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