Adams Diversified Equity Fund Inc. Buys Shares of 65,500 FedEx Corporation $FDX

Key Points

• Adams Diversified Equity Fund disclosed a new fourth-quarter position in FedEx, buying 65,500 shares valued at about $18.9 million.
• FedEx continues to attract major institutional interest, with firms like Norges Bank, Vanguard, and Dodge & Cox increasing or establishing large stakes; institutions now own 84.47% of the stock.
• FedEx reported better-than-expected quarterly results and raised analyst optimism, but recent insider selling and a modest dividend yield of 1.4% remain notable investor signals.

Adams Diversified Equity Fund Inc. acquired a new position in shares of FedEx Corporation (NYSE:FDX - Free Report) during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm acquired 65,500 shares of the shipping service provider's stock, valued at approximately $18,920,000.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in FDX. Norges Bank purchased a new stake in shares of FedEx during the fourth quarter worth about $859,085,000. Vanguard Group Inc. boosted its position in shares of FedEx by 13.2% during the third quarter. Vanguard Group Inc. now owns 23,442,049 shares of the shipping service provider's stock worth $5,527,870,000 after buying an additional 2,741,723 shares during the period. Boston Partners acquired a new position in shares of FedEx during the third quarter worth approximately $468,195,000. Dodge & Cox boosted its position in shares of FedEx by 12.0% during the third quarter. Dodge & Cox now owns 16,225,160 shares of the shipping service provider's stock worth $3,826,055,000 after buying an additional 1,742,666 shares during the period. Finally, AQR Capital Management LLC boosted its position in shares of FedEx by 169.2% during the third quarter. AQR Capital Management LLC now owns 2,733,905 shares of the shipping service provider's stock worth $638,203,000 after buying an additional 1,718,278 shares during the period. Institutional investors and hedge funds own 84.47% of the company's stock.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the company. Zacks Research cut FedEx from a "strong-buy" rating to a "hold" rating in a report on Wednesday, March 18th. Susquehanna upped their price target on FedEx from $410.00 to $455.00 and gave the company a "positive" rating in a report on Friday, March 20th. Stephens reaffirmed an "overweight" rating and issued a $435.00 price target on shares of FedEx in a report on Tuesday, April 14th. Argus boosted their target price on shares of FedEx from $350.00 to $400.00 and gave the company a "buy" rating in a research note on Monday, April 6th. Finally, JPMorgan Chase & Co. raised shares of FedEx from a "neutral" rating to an "overweight" rating and boosted their target price for the company from $432.00 to $460.00 in a research note on Wednesday, May 27th. Eighteen analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $371.45.

FedEx Trading Down 0.1%

Shares of NYSE:FDX opened at $337.65 on Friday. The stock has a market capitalization of $80.57 billion, a PE ratio of 17.97, a P/E/G ratio of 1.54 and a beta of 1.28. FedEx Corporation has a 1 year low of $172.88 and a 1 year high of $342.81. The firm has a fifty day moving average price of $371.84 and a 200 day moving average price of $342.64. The company has a current ratio of 1.47, a quick ratio of 1.44 and a debt-to-equity ratio of 0.77.

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, topping analysts' consensus estimates of $4.12 by $1.13. FedEx had a net margin of 4.88% and a return on equity of 16.76%. The firm had revenue of $24 billion during the quarter, compared to analysts' expectations of $23.44 billion. During the same period in the prior year, the company posted $4.51 earnings per share. FedEx's revenue for the quarter was up 8.3% on a year-over-year basis. Analysts expect that FedEx Corporation will post 19.78 EPS for the current fiscal year.

FedEx Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 7th. Stockholders of record on Monday, June 22nd will be given a dividend of $1.22 per share. The ex-dividend date of this dividend is Monday, June 22nd. This represents a $4.88 dividend on an annualized basis and a dividend yield of 1.4%. FedEx's dividend payout ratio is currently 30.87%.

Insider Activity at FedEx

In related 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 value 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Tracy B. Brightman sold 16,959 shares of the stock in a transaction dated 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 transaction, the executive vice president directly owned 11,052 shares of the company's stock, valued at $4,017,070.44. This trade represents a 60.54% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 48,104 shares of company stock worth $17,599,006 over the last ninety days. Corporate insiders own 0.53% of the company's stock.

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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