Capital International Investors Trims Position in FedEx Corporation $FDX

Key Points

• Capital International Investors cut its FedEx stake by 15.9% in the fourth quarter, selling 685,766 shares but still holding about 3.62 million shares valued at roughly $1.05 billion.
• FedEx reported a strong latest quarter, with EPS of $5.25 beating estimates and revenue of $24 billion topping expectations, while revenue rose 8.3% year over year.
• Analyst sentiment remains mostly positive despite mixed views: several firms maintained or initiated buy ratings, and the stock carries a consensus rating of Moderate Buy with a target price of $372.41.

Capital International Investors trimmed its position in shares of FedEx Corporation (NYSE:FDX - Free Report) by 15.9% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 3,624,636 shares of the shipping service provider's stock after selling 685,766 shares during the quarter. Capital International Investors owned approximately 1.54% of FedEx worth $1,047,135,000 as of its most recent SEC filing.

Several other institutional investors have also recently made changes to their positions in FDX. Brighton Jones LLC increased its holdings in shares of FedEx by 12.8% during the 4th quarter. Brighton Jones LLC now owns 1,825 shares of the shipping service provider's stock valued at $514,000 after purchasing an additional 207 shares in the last quarter. Empowered Funds LLC increased its holdings in shares of FedEx by 78.9% during the 1st quarter. Empowered Funds LLC now owns 10,311 shares of the shipping service provider's stock valued at $2,514,000 after purchasing an additional 4,548 shares in the last quarter. Sivia Capital Partners LLC purchased a new position in shares of FedEx during the 2nd quarter valued at approximately $586,000. Quantbot Technologies LP acquired a new position in FedEx in the 2nd quarter worth about $186,000. Finally, Jump Financial LLC acquired a new position in FedEx in the 2nd quarter worth about $456,000. 84.47% of the stock is owned by hedge funds and other institutional investors.

FedEx Stock Up 1.1%

NYSE FDX opened at $331.59 on Friday. The business has a fifty day moving average price of $373.71 and a 200 day moving average price of $340.31. FedEx Corporation has a one year low of $172.88 and a one year high of $341.14. The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.44 and a current ratio of 1.47. The company has a market cap of $79.12 billion, a P/E ratio of 17.65, a P/E/G ratio of 1.51 and a beta of 1.28.

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

Key Stories Impacting FedEx

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 analysts recently weighed in on FDX shares. UBS Group started coverage on FedEx in a report on Wednesday, May 27th. They issued a "buy" rating and a $445.00 price target for the company. Morgan Stanley upped their price target on FedEx from $220.00 to $230.00 and gave the stock an "underweight" rating in a report on Friday, March 20th. Bank of America decreased their target price on FedEx from $440.00 to $376.00 and set a "buy" rating on the stock in a research report on Tuesday, June 2nd. The Goldman Sachs Group decreased their target price on FedEx from $405.00 to $375.00 and set a "buy" rating on the stock in a research report on Monday, June 1st. Finally, Seaport Research Partners began coverage on FedEx in a research report on Wednesday, May 27th. They set a "buy" rating on the stock. Eighteen investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $372.41.

Insider Buying and Selling

In other FedEx news, EVP Gina F. Adams sold 20,450 shares of the company's stock in a transaction 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 completion of the sale, the executive vice president directly owned 19,403 shares in the company, valued at $7,110,229.35. This represents a 51.31% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Tracy B. Brightman sold 16,959 shares of the company's stock in a transaction on Wednesday, April 15th. The shares were sold at an average price of $363.47, for a total value of $6,164,087.73. Following the completion of the sale, the executive vice president owned 11,052 shares of the company's stock, valued at approximately $4,017,070.44. The trade was a 60.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 48,104 shares of company stock valued at $17,599,006 in the last quarter. Corporate insiders own 0.53% of the company's stock.

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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