AEGON ASSET MANAGEMENT UK Plc Increases Holdings in FedEx Corporation $FDX

Key Points

• AEGON Asset Management UK Plc increased its stake in FedEx by 14.3%, buying 11,676 shares to hold 93,599 shares worth approximately $27.05 million at quarter-end.
• FedEx beat quarterly expectations, reporting $5.25 EPS versus $4.12 expected and $24 billion in revenue (up 8.3% year-over-year), and the company recently announced a $1.45 quarterly dividend while analysts have raised price targets toward a consensus of $398.04 ("Moderate Buy").
• Insider selling and heavy institutional ownership: insiders sold 48,104 shares (~$17.6M) over the last quarter, while hedge funds and other institutions own about 84.47% of the stock.

AEGON ASSET MANAGEMENT UK Plc increased its stake in FedEx Corporation (NYSE:FDX - Free Report) by 14.3% in the 4th quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 93,599 shares of the shipping service provider's stock after purchasing an additional 11,676 shares during the quarter. AEGON ASSET MANAGEMENT UK Plc's holdings in FedEx were worth $27,048,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also bought and sold shares of FDX. Vanguard Group Inc. boosted its stake in FedEx by 13.2% during 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 buying an additional 2,741,723 shares during the period. Dodge & Cox boosted its stake in FedEx by 12.0% during 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 buying an additional 1,742,666 shares during the period. Franklin Resources Inc. boosted its stake in FedEx by 5.9% during the third quarter. Franklin Resources Inc. now owns 4,814,938 shares of the shipping service provider's stock valued at $1,135,411,000 after buying an additional 269,567 shares during the period. Invesco Ltd. boosted its stake in FedEx by 3.1% during the third quarter. Invesco Ltd. now owns 3,618,898 shares of the shipping service provider's stock valued at $853,372,000 after buying an additional 108,426 shares during the period. Finally, AQR Capital Management LLC boosted its stake in 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 valued at $638,203,000 after buying an additional 1,718,278 shares during the period. 84.47% of the stock is currently owned by hedge funds and other institutional investors.

FedEx Stock Down 1.2%

Shares of NYSE:FDX opened at $387.83 on Friday. FedEx Corporation has a 1 year low of $204.33 and a 1 year high of $399.67. The company has a market cap of $92.54 billion, a PE ratio of 20.64, a P/E/G ratio of 1.49 and a beta of 1.28. The company has a debt-to-equity ratio of 0.77, a current ratio of 1.47 and a quick ratio of 1.44. The stock's 50-day moving average is $369.88 and its 200 day moving average is $315.12.

FedEx (NYSE:FDX - Get Free Report) last announced its quarterly earnings results on Thursday, March 19th. The shipping service provider reported $5.25 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.12 by $1.13. FedEx had a return on equity of 16.76% and a net margin of 4.88%.The company had revenue of $24 billion for the quarter, compared to the consensus estimate of $23.44 billion. During the same quarter in the previous year, the business earned $4.51 EPS. FedEx's revenue was up 8.3% compared to the same quarter last year. Sell-side analysts anticipate that FedEx Corporation will post 19.72 EPS for the current year.

FedEx Announces Dividend

The company also recently announced 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. The ex-dividend date was Monday, March 9th. This represents a $5.80 dividend on an annualized basis and a dividend yield of 1.5%. FedEx's dividend payout ratio is 30.87%.

Key FedEx News

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: Recent price momentum and strong multi-period returns have attracted attention, supporting investor confidence in the stock's rally. FedEx (FDX) Valuation Check After Strong Multi Period Share Price Momentum
• Positive Sentiment: Sector strength: commentary that transport names (including FedEx) are rallying has buoyed sentiment because shipping strength is often seen as a proxy for economic resilience. When Transport Stocks Rally, Recession Risks Fade: Technicals
• Positive Sentiment: Strategic growth tie-up in Vietnam with Viettel Post may expand cross-border volumes and emerging-market exposure for FedEx. Viettel Post and FedEx Announce Strategic Partnership to Strengthen Cross-Border Logistics in Vietnam
• Negative Sentiment: Short interest rose materially in April — up ~23.6% to 3,275,799 shares (about 1.4% of shares outstanding) with a ~2.1 days-to-cover — increasing the potential for further selling pressure and volatility as shorts accumulate.
• Negative Sentiment: Valuation and macro caution: a recent analyst piece argues that stretched valuation and macro/technical risks still outweigh FedEx’s fundamentals, which can prompt profit-taking after the strong run. FedEx Corporation: Valuation, Technical, And Macro Downsides Still Outweigh Fundamental Soundness
• Negative Sentiment: Regulatory/operational headwind: carriers (including FedEx) are expected to reimburse customers via the CBP tariff refund portal, which could mean near-term cash outflows and customer-relations costs. UPS, FedEx, DHL Set to Reimburse Customers as CBP Tariff Portal Goes Live

Insider Transactions at FedEx

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 stock was sold at an average price of $369.00, for a total transaction of $2,138,355.00. Following the transaction, the director owned 10,038 shares in the company, valued at approximately $3,704,022. This represents a 36.60% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Gina F. Adams sold 20,450 shares of the company's stock in a transaction that occurred on 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 transaction, the executive vice president owned 19,403 shares in the company, 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 have sold a total of 48,104 shares of company stock worth $17,599,006 over the last quarter. Insiders own 0.53% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the company. Sanford C. Bernstein lifted their price objective on FedEx from $457.00 to $470.00 and gave the company an "outperform" rating in a research note on Thursday, April 9th. BMO Capital Markets lifted their price target on FedEx from $400.00 to $410.00 and gave the stock a "market perform" rating in a research note on Friday, March 20th. Evercore lifted their price target on FedEx from $364.00 to $380.00 in a research note on Tuesday, February 24th. TD Cowen lifted their price target on FedEx from $383.00 to $426.00 and gave the stock a "buy" rating in a research note on Friday, March 20th. Finally, UBS Group lifted their price target on FedEx from $412.00 to $446.00 and gave the stock a "buy" rating in a research note on Friday, March 20th. Eighteen equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, FedEx has a consensus rating of "Moderate Buy" and a consensus price target of $398.04.

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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