Brandywine Global Investment Management LLC Boosts Stake in FedEx Corporation $FDX

Key Points

• Brandywine Global Investment Management boosted its FedEx stake by 69% in the fourth quarter, buying an additional 225,856 shares and bringing its total holding to 553,129 shares worth about $159.8 million.
• FedEx Freight’s spinoff is drawing positive analyst attention, with commentary suggesting it could streamline operations and help support the company’s Network 2.0 margin-improvement strategy.
• Wall Street remains generally constructive on FedEx despite mixed target-price cuts: analysts now have a Moderate Buy consensus rating, and FedEx recently beat quarterly EPS and revenue estimates.

Brandywine Global Investment Management LLC increased its position in FedEx Corporation (NYSE:FDX - Free Report) by 69.0% in the 4th quarter, according to its most recent filing with the SEC. The fund owned 553,129 shares of the shipping service provider's stock after purchasing an additional 225,856 shares during the period. FedEx accounts for about 1.1% of Brandywine Global Investment Management LLC's holdings, making the stock its 18th biggest holding. Brandywine Global Investment Management LLC owned 0.24% of FedEx worth $159,777,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also made changes to their positions in the company. Wealth Watch Advisors INC purchased a new stake in FedEx during the 3rd quarter valued at approximately $28,000. Ameriflex Group Inc. increased its position in FedEx by 103.3% during the 3rd quarter. Ameriflex Group Inc. now owns 124 shares of the shipping service provider's stock worth $29,000 after purchasing an additional 63 shares during the period. Ulland Investment Advisors LLC purchased a new stake in shares of FedEx in the fourth quarter valued at approximately $29,000. Tucker Asset Management LLC purchased a new stake in shares of FedEx in the fourth quarter valued at approximately $29,000. Finally, ORG Partners LLC grew its holdings in FedEx by 50.0% during the fourth quarter. ORG Partners LLC now owns 105 shares of the shipping service provider's stock worth $30,000 after acquiring an additional 35 shares during the period. 84.47% of the stock is owned by hedge funds and other institutional investors.

FedEx News Roundup

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: FedEx Freight’s debut as a separate company drew fresh analyst coverage and upbeat commentary, with some observers calling it a potential “true winner” and a catalyst for value creation at FedEx. FedEx Freight Stock (FDXF) Soars on Fresh Analyst Coverage
• Positive Sentiment: Analysts and market commentators said the spinoff may help FedEx streamline operations and fully launch its Network 2.0 initiative, which could improve margins and long-term earnings power. Is FedEx a Buy Following Its FedEx Freight Spinoff?
• Positive Sentiment: Jim Cramer highlighted the new breakup of FedEx as a long-awaited move that could be viewed favorably by investors looking for a cleaner, more focused company structure. Why Jim Cramer Says Newly Public FedEx Freight Stock Could Be a ‘True Winner’
• Neutral Sentiment: FedEx has recently outperformed some industrial peers, but commentary remains mixed, with valuation concerns and conflicting analyst views keeping enthusiasm in check. FedEx Stock: Is FDX Outperforming the Industrial Sector?
• Negative Sentiment: One FreightWaves report said a FedEx partner airline may face service risk on Caribbean routes without an FAA waiver, which could raise operational uncertainty for parts of the cargo network. FedEx partner airline says Caribbean service at risk without FAA waiver

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the company. Rothschild & Co Redburn lowered their price target on FedEx from $375.00 to $344.00 and set a "neutral" rating on the stock in a report on Tuesday, June 2nd. Bank of America reduced their price objective on FedEx from $440.00 to $376.00 and set a "buy" rating for the company in a report on Tuesday, June 2nd. Sanford C. Bernstein boosted their target price on FedEx from $457.00 to $470.00 and gave the stock an "outperform" rating in a research report on Thursday, April 9th. HSBC lowered their target price on FedEx from $360.00 to $289.89 and set a "hold" rating on the stock in a report on Monday, June 1st. Finally, BNP Paribas Exane cut their price target on FedEx from $335.00 to $269.76 and set a "neutral" rating for the company in a research note on Tuesday, June 2nd. Eighteen equities research 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. Based on data from MarketBeat.com, FedEx has a consensus rating of "Moderate Buy" and a consensus target price of $372.41.

Insider Buying and Selling at FedEx

In other FedEx news, Director Susan C. Schwab sold 5,795 shares of the business'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 transaction of $2,138,355.00. Following the completion of the sale, the director directly owned 10,038 shares in the company, valued at $3,704,022. The trade was a 36.60% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Tracy B. Brightman sold 16,959 shares of the business's stock in a transaction that occurred 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 sale, the executive vice president owned 11,052 shares of the company's stock, valued at approximately $4,017,070.44. This represents a 60.54% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 48,104 shares of company stock valued at $17,599,006 in the last ninety days. Corporate insiders own 0.53% of the company's stock.

FedEx Price Performance

FedEx stock opened at $331.59 on Monday. FedEx Corporation has a 1 year low of $172.88 and a 1 year high of $341.14. The firm has a 50 day moving average price of $373.71 and a 200 day moving average price of $340.84. The company has a market cap of $79.12 billion, a price-to-earnings ratio of 17.65, a PEG ratio of 1.51 and a beta of 1.28. The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.44 and a current ratio of 1.47.

FedEx (NYSE:FDX - Get Free Report) last released its 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 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 the consensus estimate of $23.44 billion. During the same period in the previous year, the firm earned $4.51 earnings per share. FedEx's revenue was up 8.3% compared to the same quarter last year. Sell-side analysts predict that FedEx Corporation will post 19.72 earnings per share for the current year.

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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