Baxter Bros Inc. Takes Position in FedEx Corporation $FDX

Key Points

• Baxter Bros Inc. acquired 4,919 FedEx shares worth approximately $1.54 million in the second quarter, while institutional investors and hedge funds collectively own 84.47% of FDX.
• FedEx reported quarterly revenue of $23.26 billion and earnings of $5.88 per share; analysts project $17.60 in full-year EPS. The stock recently traded at $334.56, near the consensus price target of $350.54, with a “Moderate Buy” rating.
• Potential catalysts include automation-driven efficiency gains and improved shipping pricing, but tariff refunds, facility closures and layoffs highlight ongoing cost and demand pressures.

Baxter Bros Inc. acquired a new position in FedEx Corporation (NYSE:FDX - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The fund acquired 4,919 shares of the shipping service provider's stock, valued at approximately $1,540,000.

Several other large investors have also recently bought and sold shares of FDX. Hollencrest Capital Management acquired a new stake in shares of FedEx in the 1st quarter valued at $25,000. Bayban acquired a new stake in FedEx in the first quarter worth about $26,000. Cedar Mountain Advisors LLC increased its position in FedEx by 77.4% in the first quarter. Cedar Mountain Advisors LLC now owns 94 shares of the shipping service provider's stock worth $33,000 after purchasing an additional 41 shares during the period. EFG International AG bought a new stake in FedEx during the 4th quarter worth about $27,000. Finally, Tucker Asset Management LLC acquired a new position in FedEx during the 4th quarter valued at about $29,000. Institutional investors and hedge funds own 84.47% of the company's stock.

FedEx Stock Down 0.0%

Shares of NYSE FDX opened at $334.56 on Monday. FedEx Corporation has a 52-week low of $177.05 and a 52-week high of $345.36. The company has a debt-to-equity ratio of 0.74, a quick ratio of 1.44 and a current ratio of 1.48. The stock has a market cap of $79.15 billion, a P/E ratio of 18.07, a P/E/G ratio of 1.72 and a beta of 1.30. The firm has a 50 day moving average price of $319.39 and a 200 day moving average price of $351.40.

FedEx (NYSE:FDX - Get Free Report) last posted its earnings results on Tuesday, July 21st. The shipping service provider reported $5.88 earnings per share for the quarter. The company had revenue of $23.26 billion for the quarter. FedEx had a net margin of 4.68% and a return on equity of 16.49%. Analysts expect that FedEx Corporation will post 17.6 EPS for the current year.

FedEx Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 7th. Shareholders of record on Monday, June 22nd were issued a $1.22 dividend. This represents a $4.88 annualized dividend and a dividend yield of 1.5%. The ex-dividend date was Monday, June 22nd. FedEx's dividend payout ratio is 26.36%.

Insider Buying and Selling

In other FedEx news, Director Paul S. Walsh sold 5,042 shares of the firm's stock in a transaction that occurred on Tuesday, June 30th. The shares were sold at an average price of $324.56, for a total transaction of $1,636,431.52. Following the sale, the director directly owned 16,359 shares in the company, valued at approximately $5,309,477.04. This trade represents a 23.56% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 0.53% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the stock. TD Cowen reduced their target price on shares of FedEx from $426.00 to $354.00 in a research note on Wednesday, June 24th. Deutsche Bank Aktiengesellschaft cut shares of FedEx from a "buy" rating to a "hold" rating in a research note on Wednesday, May 27th. Jefferies Financial Group initiated coverage on shares of FedEx in a report on Tuesday, June 23rd. They set a "buy" rating and a $200.00 target price for the company. Rothschild & Co Redburn reduced their price target on FedEx from $375.00 to $344.00 and set a "neutral" rating on the stock in a research report on Tuesday, June 2nd. Finally, Barclays decreased their price objective on FedEx from $450.00 to $425.00 and set an "overweight" rating for the company in a research note on Wednesday, June 17th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, ten have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $350.54.

Key FedEx News

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: Automation strategy supports efficiency: FedEx is sharpening its focus on automation to improve productivity and reduce costs, which could support margins over time. FedEx Automation Strategy Sharpens Focus on Efficiency
• Positive Sentiment: Industry shipping constraints may improve pricing: Capacity limitations, delays and higher prices reported by major ocean carriers could benefit parcel and freight operators such as FedEx if customers shift transportation modes or accept higher shipping rates. Walmart, Tesla, FedEx, and More Winners and Losers From Shipping's Rough Seas
• Neutral Sentiment: Call-option activity signals bullish speculation: Investors purchased a high volume of FedEx call options, indicating increased expectations for a rebound, although options activity does not guarantee fundamental improvement. Investors Purchase High Volume of Call Options on FedEx
• Neutral Sentiment: FedEx Freight’s upbeat debut is separate from FDX: Newly independent FedEx Freight Holding Company NASDAQ: FDXF attracted favorable analyst coverage, with reported targets above its trading level and fiscal fourth-quarter revenue of $2.4 billion. The development may highlight value unlocked by FedEx’s freight separation, but FDXF now trades as a separate company.
• Negative Sentiment: Tariff refunds will not provide a lasting earnings boost: FedEx reportedly plans to return approximately $800 million in tariff refunds to customers after courts invalidated the tariffs. Passing the funds through limits the benefit to FedEx’s profits and could create administrative costs or temporary cash-flow pressure. Nike, FedEx Reap Billions From Tariff Refunds
• Negative Sentiment: Southern California closures and layoffs underscore cost pressure: FedEx is among employers announcing more than 500 job cuts in the region, including facility closures in Palm Springs and Victorville. While potentially supportive of restructuring savings, the actions point to softer demand and ongoing network rationalization. FedEx and Others Announce Layoffs in Southern California

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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