Bank of New York Mellon Corp Buys 125,950 Shares of FedEx Corporation $FDX

Key Points

• Bank of New York Mellon increased its FedEx stake by 6.3% in Q1, buying 125,950 more shares and bringing its total holding to 2,134,672 shares valued at about $760.3 million.
• FedEx reported stronger-than-expected quarterly results, posting $6.31 EPS versus the $5.91 estimate and revenue of $25.01 billion, up 12.5% year over year.
• The company also paid a quarterly dividend of $1.22 per share, while analysts now have a consensus Moderate Buy rating with an average price target of $350.54.

Bank of New York Mellon Corp boosted its stake in FedEx Corporation (NYSE:FDX - Free Report) by 6.3% in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 2,134,672 shares of the shipping service provider's stock after purchasing an additional 125,950 shares during the quarter. Bank of New York Mellon Corp owned about 0.89% of FedEx worth $760,328,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also bought and sold shares of FDX. Norges Bank bought a new position in FedEx in the fourth quarter valued at approximately $859,085,000. Boston Partners acquired a new position in FedEx during the third quarter valued at approximately $468,195,000. AQR Capital Management LLC lifted 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 worth $638,203,000 after purchasing an additional 1,718,278 shares during the last quarter. Waddell & Associates LLC lifted its stake in FedEx by 164.0% during the fourth quarter. Waddell & Associates LLC now owns 1,188,140 shares of the shipping service provider's stock worth $343,206,000 after purchasing an additional 738,122 shares during the last quarter. Finally, Two Sigma Investments LP boosted its holdings in shares of FedEx by 3,211.5% in the 3rd quarter. Two Sigma Investments LP now owns 549,306 shares of the shipping service provider's stock valued at $129,532,000 after purchasing an additional 532,718 shares in the last quarter. Institutional investors own 84.47% of the company's stock.

FedEx Stock Up 1.7%

NYSE:FDX opened at $318.61 on Friday. FedEx Corporation has a one year low of $172.88 and a one year high of $345.36. The company has a debt-to-equity ratio of 0.74, a current ratio of 1.48 and a quick ratio of 1.44. The company has a market cap of $76.02 billion, a PE ratio of 17.21, a P/E/G ratio of 1.61 and a beta of 1.29. The firm's 50 day simple moving average is $343.42 and its 200 day simple moving average is $349.47.

FedEx (NYSE:FDX - Get Free Report) last announced its quarterly earnings results on Tuesday, June 23rd. The shipping service provider reported $6.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.91 by $0.40. FedEx had a net margin of 4.68% and a return on equity of 16.49%. The firm had revenue of $25.01 billion during the quarter, compared to analysts' expectations of $24.04 billion. During the same period in the prior year, the company posted $6.07 EPS. The company's revenue was up 12.5% on a year-over-year basis. FedEx has set its FY 2027 guidance at 16.900-18.100 EPS. On average, research analysts anticipate that FedEx Corporation will post 17.6 earnings per share for the current year.

FedEx Cuts Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, July 7th. Investors of record on Monday, June 22nd were paid a $1.22 dividend. This represents a $4.88 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend was Monday, June 22nd. FedEx's payout ratio is currently 26.36%.

Insider Activity at FedEx

In related news, Director Paul S. Walsh sold 5,042 shares of the company's stock in a transaction that occurred on Tuesday, June 30th. The stock was sold at an average price of $324.56, for a total value of $1,636,431.52. Following the sale, the director directly owned 16,359 shares in the company, valued at $5,309,477.04. This represents a 23.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.53% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

Several brokerages have recently issued reports on FDX. BNP Paribas Exane decreased their price target on FedEx from $335.00 to $269.76 and set a "neutral" rating on the stock in a research note on Tuesday, June 2nd. Raymond James Financial reduced their price objective on FedEx from $415.00 to $330.00 and set an "outperform" rating on the stock in a research note on Wednesday, June 24th. BMO Capital Markets reiterated a "market perform" rating on shares of FedEx in a research report on Wednesday, June 24th. Morgan Stanley increased their target price on shares of FedEx from $220.00 to $230.00 and gave the stock an "underweight" rating in a report on Friday, March 20th. Finally, Stifel Nicolaus decreased their price target on shares of FedEx from $442.00 to $326.00 and set a "buy" rating on the stock in a report on Wednesday, June 24th. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, nine have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, FedEx presently has a consensus rating of "Moderate Buy" and an average target price of $350.54.

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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