FedEx (NYSE:FDX) Upgraded to Buy at Wall Street Zen

Key Points

• FedEx has been upgraded to a buy rating by Wall Street Zen, indicating positive sentiment towards the company's future performance.
• Analysts have set various price objectives for FedEx, with the consensus target price now at $271.67, reflecting optimistic expectations after a recent quarterly earnings report where the company exceeded revenue and earnings estimates.
• Institutional investors show strong support for FedEx, with 84.47% of the company's stock owned by hedge funds and other institutional investors, indicating a robust belief in the company's potential growth.

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

Several other analysts have also weighed in on FDX. Citigroup increased their price target on FedEx from $275.00 to $279.00 and gave the company a "buy" rating in a report on Friday, September 19th. BNP Paribas Exane raised FedEx from an "underperform" rating to an "outperform" rating and set a $270.00 price objective on the stock in a research report on Thursday, July 3rd. HSBC upped their price objective on FedEx from $230.00 to $235.00 in a research report on Friday, September 19th. JPMorgan Chase & Co. cut their price objective on FedEx from $285.00 to $284.00 and set an "overweight" rating on the stock in a research report on Friday, September 19th. Finally, Barclays reaffirmed an "overweight" rating and issued a $320.00 price objective (down previously from $330.00) on shares of FedEx in a research report on Wednesday, June 25th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, FedEx presently has an average rating of "Moderate Buy" and a consensus target price of $271.67.

FedEx Price Performance

NYSE FDX traded up $1.47 during trading hours on Friday, reaching $237.89. The company's stock had a trading volume of 2,298,003 shares, compared to its average volume of 2,456,807. The firm's 50-day moving average price is $229.31 and its 200-day moving average price is $226.13. The company has a quick ratio of 1.21, a current ratio of 1.25 and a debt-to-equity ratio of 0.73. FedEx has a 1 year low of $194.29 and a 1 year high of $308.53. The company has a market capitalization of $56.13 billion, a price-to-earnings ratio of 13.89, a PEG ratio of 1.31 and a beta of 1.20.

FedEx (NYSE:FDX - Get Free Report) last issued its quarterly earnings data on Thursday, September 18th. The shipping service provider reported $3.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.71 by $0.12. The business had revenue of $22.20 billion for the quarter, compared to analysts' expectations of $21.74 billion. FedEx had a return on equity of 16.33% and a net margin of 4.65%.The company's revenue for the quarter was up 3.1% on a year-over-year basis. During the same period in the prior year, the firm earned $3.60 EPS. FedEx has set its FY 2026 guidance at 17.200-19.000 EPS. On average, equities research analysts predict that FedEx will post 19.14 EPS for the current fiscal year.

Insider Transactions at FedEx

In other news, Director R Brad Martin sold 2,123 shares of FedEx stock in a transaction that occurred 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 sale, the director directly owned 8,935 shares of the company's stock, valued at $2,160,036.25. The trade was a 19.20% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Paul S. Walsh sold 3,610 shares of FedEx stock in a transaction that occurred on Tuesday, July 8th. The stock was sold at an average price of $238.29, for a total value of $860,226.90. Following the transaction, the director owned 15,513 shares in the company, valued at approximately $3,696,592.77. The trade was a 18.88% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 9,343 shares of company stock valued at $2,228,816 over the last ninety days. Insiders own 0.53% of the company's stock.

Institutional Investors Weigh In On FedEx

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its position in FedEx by 1.0% in the second quarter. Vanguard Group Inc. now owns 20,700,326 shares of the shipping service provider's stock valued at $4,705,391,000 after purchasing an additional 211,165 shares during the period. Dodge & Cox grew its stake in shares of FedEx by 4.7% in the second quarter. Dodge & Cox now owns 14,482,494 shares of the shipping service provider's stock valued at $3,292,016,000 after buying an additional 649,426 shares in the last quarter. Geode Capital Management LLC grew its stake in shares of FedEx by 0.6% in the second quarter. Geode Capital Management LLC now owns 4,947,670 shares of the shipping service provider's stock valued at $1,124,524,000 after buying an additional 28,450 shares in the last quarter. Franklin Resources Inc. grew its stake in shares of FedEx by 2.1% in the second quarter. Franklin Resources Inc. now owns 4,545,371 shares of the shipping service provider's stock valued at $1,033,208,000 after buying an additional 94,136 shares in the last quarter. Finally, Valeo Financial Advisors LLC grew its stake in shares of FedEx by 28,080.9% in the second quarter. Valeo Financial Advisors LLC now owns 3,743,557 shares of the shipping service provider's stock valued at $850,948,000 after buying an additional 3,730,273 shares in the last quarter. Hedge funds and other institutional investors own 84.47% of the company's stock.

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.

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