ACR Alpine Capital Research LLC Decreases Stake in FedEx Corporation $FDX

Key Points

• ACR Alpine Capital Research reduced its FedEx stake by 35.4% in the first quarter, selling 616,950 shares and leaving it with 1,123,684 shares valued at about $400.2 million.
• FedEx recently beat quarterly earnings and revenue expectations, reporting $6.31 EPS versus $5.91 expected and revenue of $25.01 billion, up 12.5% year over year. The company also reaffirmed long-term guidance for FY 2027 EPS of 16.9 to 18.1.
• Analysts remain broadly bullish despite some lower price targets, with a Moderate Buy consensus and an average price target of $349.60. FedEx also announced debt tender offers totaling up to $4.15 billion, part of its balance-sheet and spin-off restructuring efforts.

ACR Alpine Capital Research LLC cut its holdings in FedEx Corporation (NYSE:FDX - Free Report) by 35.4% in the first quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 1,123,684 shares of the shipping service provider's stock after selling 616,950 shares during the quarter. FedEx makes up 6.0% of ACR Alpine Capital Research LLC's portfolio, making the stock its 7th largest position. ACR Alpine Capital Research LLC owned 0.47% of FedEx worth $400,234,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also added to or reduced their stakes in the stock. OneAscent Financial Services LLC lifted its position in shares of FedEx by 1.7% during the fourth quarter. OneAscent Financial Services LLC now owns 1,699 shares of the shipping service provider's stock worth $491,000 after purchasing an additional 29 shares in the last quarter. Whipplewood Advisors LLC raised its position in FedEx by 9.9% in the 1st quarter. Whipplewood Advisors LLC now owns 333 shares of the shipping service provider's stock worth $119,000 after purchasing an additional 30 shares during the last quarter. Arete Wealth Advisors LLC lifted its holdings in FedEx by 1.7% during the 4th quarter. Arete Wealth Advisors LLC now owns 1,778 shares of the shipping service provider's stock worth $514,000 after buying an additional 30 shares in the last quarter. LRI Investments LLC boosted its position in FedEx by 5.2% in the 4th quarter. LRI Investments LLC now owns 632 shares of the shipping service provider's stock valued at $183,000 after buying an additional 31 shares during the last quarter. Finally, Cary Street Partners Investment Advisory LLC boosted its position in FedEx by 11.9% in the 4th quarter. Cary Street Partners Investment Advisory LLC now owns 292 shares of the shipping service provider's stock valued at $84,000 after buying an additional 31 shares during the last quarter. Institutional investors and hedge funds own 84.47% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the company. UBS Group dropped their target price on FedEx from $445.00 to $350.00 and set a "buy" rating for the company in a research report on Wednesday, June 24th. The Goldman Sachs Group decreased their price target on FedEx from $405.00 to $375.00 and set a "buy" rating on the stock in a report on Monday, June 1st. Stifel Nicolaus lowered their price objective on FedEx from $442.00 to $326.00 and set a "buy" rating for the company in a research report on Wednesday, June 24th. Bank of America upped their target price on shares of FedEx from $376.00 to $378.00 and gave the company a "buy" rating in a research report on Wednesday, June 24th. Finally, Weiss Ratings lowered shares of FedEx from a "buy (b)" rating to a "buy (b-)" rating in a research note on Wednesday, June 3rd. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $349.60.

FedEx Stock Up 1.2%

NYSE:FDX opened at $314.49 on Friday. The company has a quick ratio of 1.44, a current ratio of 1.48 and a debt-to-equity ratio of 0.74. FedEx Corporation has a 12-month low of $172.88 and a 12-month high of $345.36. The stock's fifty day simple moving average is $348.63 and its 200-day simple moving average is $348.55. The firm has a market capitalization of $75.04 billion, a P/E ratio of 16.99 and a beta of 1.29.

FedEx (NYSE:FDX - Get Free Report) last released its earnings results on Tuesday, June 23rd. The shipping service provider reported $6.31 earnings per share for the quarter, beating the consensus estimate of $5.91 by $0.40. FedEx had a return on equity of 16.49% and a net margin of 4.68%.The firm had revenue of $25.01 billion for the quarter, compared to analyst estimates of $24.04 billion. During the same quarter in the prior year, the firm posted $6.07 earnings per share. The company's quarterly revenue was up 12.5% on a year-over-year basis. FedEx has set its FY 2027 guidance at 16.900-18.100 EPS.

FedEx Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, July 7th. Investors of record on Monday, June 22nd were issued a dividend of $1.22 per share. The ex-dividend date was Monday, June 22nd. This represents a $4.88 dividend on an annualized basis and a yield of 1.6%. FedEx's payout ratio is currently 26.36%.

FedEx News Roundup

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: FedEx announced pricing for cash tender offers to repurchase up to $4.15 billion of debt, a move that can lower future interest expense and improve its balance sheet after the planned FedEx Freight spin-off. FedEx Announces Pricing for Cash Tender Offers
• Positive Sentiment: FedEx also reported early tender results for the debt offers, signaling active participation and progress on its capital-structure reshaping plan. FedEx Announces Early Tender Results of Previously Announced Cash Tender Offers
• Positive Sentiment: Analyst sentiment improved, with Stephens upgrading FedEx to “strong-buy” after earlier bullish commentary, which can help reinforce investor confidence in the stock. Zacks.com
• Positive Sentiment: Reports highlighted FedEx’s new life sciences division and ongoing efforts to expand healthcare logistics, suggesting a higher-margin growth opportunity for the company. New FedEx life sciences unit integrates healthcare logistics capabilities
• Neutral Sentiment: Some articles argued the stock may still be undervalued after its strong run, indicating upside potential but not an immediate catalyst. FedEx (FDX) Stock Looks Undervalued Even After A 65% Run
• Negative Sentiment: Investor concerns persist around Amazon’s low-cost logistics expansion, which could pressure FedEx pricing and market share over time. FedEx Reshapes Debt After FedEx Freight Spin-Off

Insider Activity

In other FedEx news, Director Susan C. Schwab sold 5,795 shares of the company's 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 completion of the sale, the director owned 10,038 shares of the company's stock, valued at approximately $3,704,022. This represents a 36.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Tracy B. Brightman sold 16,959 shares of the stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $363.47, for a total transaction of $6,164,087.73. Following the completion of the sale, the executive vice president owned 11,052 shares in the company, valued at approximately $4,017,070.44. This trade represents a 60.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 53,146 shares of company stock valued at $19,235,438. 0.53% of the stock is currently owned by company insiders.

FedEx 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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