Cibc World Market Inc. Raises Position in FedEx Corporation $FDX

Key Points

• Cibc World Market Inc. boosted its FedEx stake by 27% in the fourth quarter, ending with 111,557 shares valued at about $32.2 million.
• FedEx has been getting mixed but generally constructive attention from analysts and commentators, with the Freight spin-off seen as a potential value unlock even as some worry about margin pressure and short-term valuation uncertainty.
• FedEx recently beat earnings expectations, reporting $5.25 EPS on $24 billion in revenue, but insiders have been selling shares and Wall Street’s consensus remains only a Moderate Buy.

Cibc World Market Inc. increased its stake in shares of FedEx Corporation (NYSE:FDX - Free Report) by 27.0% during the 4th quarter, according to the company in its most recent filing with the SEC. The fund owned 111,557 shares of the shipping service provider's stock after purchasing an additional 23,740 shares during the quarter. Cibc World Market Inc.'s holdings in FedEx were worth $32,224,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently bought and sold shares of FDX. Ulland Investment Advisors LLC bought a new stake in FedEx in the fourth quarter worth $29,000. Tucker Asset Management LLC bought a new position in FedEx during the fourth quarter valued at $29,000. ORG Partners LLC raised its stake in shares of FedEx by 50.0% in the fourth quarter. ORG Partners LLC now owns 105 shares of the shipping service provider's stock valued at $30,000 after acquiring an additional 35 shares during the period. Camelot Portfolios LLC bought a new stake in shares of FedEx in the 4th quarter worth about $31,000. Finally, Wealth Watch Advisors INC purchased a new position in shares of FedEx during the 3rd quarter worth about $28,000. Hedge funds and other institutional investors own 84.47% of the company's stock.

Key Headlines Impacting FedEx

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: Analysts and market commentators say the Freight spin-off could unlock value for FedEx by leaving the remaining Express and Ground businesses with better margin potential and a simpler structure. FedEx Unboxes Billions in Post Spinoff Value
• Positive Sentiment: Jim Cramer highlighted the new FedEx Freight spin-off as a potential winner, reinforcing bullish sentiment around the restructuring. Why Jim Cramer Says Newly Public FedEx Freight Stock Could Be a ‘True Winner’
• Positive Sentiment: Goldman Sachs reportedly reiterated a buy view on FedEx, suggesting some analysts remain constructive despite broader market volatility. FedEx (FDX) Receives a Buy from Goldman Sachs
• Neutral Sentiment: Several recent pieces focus on how FedEx is outperforming parts of the industrial sector and whether the stock deserves a higher valuation after its pullback, but these are more commentary-driven than new company-specific catalysts. FedEx Stock: Is FDX Outperforming the Industrial Sector?
• Negative Sentiment: Morgan Stanley warned that FedEx’s upcoming quarterly results could miss Street expectations because of margin pressure, which may cap gains until earnings are reported. FedEx Quarterly Earnings Could Miss Street Views Amid Margin Pressures, Morgan Stanley Says
• Negative Sentiment: There is also some caution around the newly public FedEx Freight business, with early trading and first-week commentary suggesting investors are still deciding how to value the spin-off. FedEx Freight is viewed cautiously in its first week of trading

Insider Transactions at FedEx

In other FedEx news, Director Susan C. Schwab sold 5,795 shares of the company's stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $369.00, for a total value of $2,138,355.00. Following the completion of the sale, the director directly owned 10,038 shares in the company, valued at approximately $3,704,022. This represents a 36.60% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Gina F. Adams sold 20,450 shares of the firm's stock in a transaction on Tuesday, April 14th. The shares were 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 approximately $7,110,229.35. This represents a 51.31% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 48,104 shares of company stock valued at $17,599,006 over the last 90 days. 0.53% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the stock. Weiss Ratings downgraded shares of FedEx from a "buy (b)" rating to a "buy (b-)" rating in a report on Wednesday. Morgan Stanley boosted their target price on FedEx from $220.00 to $230.00 and gave the company an "underweight" rating in a research report on Friday, March 20th. BMO Capital Markets cut their target price on FedEx from $410.00 to $340.00 and set a "market perform" rating on the stock in a research note on Monday. Zacks Research lowered FedEx from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, March 18th. Finally, Stifel Nicolaus boosted their price objective on FedEx from $425.00 to $442.00 in a report on Friday, April 10th. Eighteen equities research 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's stock. According to MarketBeat.com, FedEx currently has a consensus rating of "Moderate Buy" and an average target price of $372.41.

FedEx Price Performance

Shares of FDX stock opened at $328.03 on Friday. The company has a market capitalization of $78.27 billion, a P/E ratio of 17.46, a P/E/G ratio of 1.46 and a beta of 1.28. The company's 50-day simple moving average is $374.23 and its two-hundred day simple moving average is $340.37. 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 current ratio of 1.47 and a quick ratio of 1.44.

FedEx (NYSE:FDX - Get Free Report) last posted its quarterly earnings results on Thursday, March 19th. The shipping service provider reported $5.25 earnings per share for the quarter, beating the consensus estimate 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 quarter in the previous year, the firm posted $4.51 earnings per share. The company's revenue was up 8.3% on a year-over-year basis. As a group, equities analysts anticipate that FedEx Corporation will post 19.72 EPS for the current year.

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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