Convergence Investment Partners LLC Makes New $2.62 Million Investment in FedEx Corporation $FDX

Key Points

• Convergence Investment Partners opened a new position in FedEx during the first quarter, buying 7,343 shares worth about $2.62 million.
• FedEx reported better-than-expected quarterly results, with EPS of $6.31 versus estimates of $5.91 and revenue of $25.01 billion, up 12.5% year over year.
• Wall Street remains broadly constructive on the stock, with a Moderate Buy consensus rating and an average target price of $350.54, even as one insider recently sold shares and FedEx paid a $1.22 quarterly dividend.

Convergence Investment Partners LLC purchased a new position in shares of FedEx Corporation (NYSE:FDX - Free Report) during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 7,343 shares of the shipping service provider's stock, valued at approximately $2,615,000.

A number of other hedge funds and other institutional investors also recently made changes to their positions in FDX. Norges Bank acquired a new stake in FedEx during the 4th quarter worth $859,085,000. Boston Partners acquired a new position in FedEx in the third quarter valued at about $468,195,000. AQR Capital Management LLC grew its stake in FedEx by 169.2% in the third quarter. AQR Capital Management LLC now owns 2,733,905 shares of the shipping service provider's stock valued at $638,203,000 after acquiring an additional 1,718,278 shares during the period. Waddell & Associates LLC increased its holdings in shares of FedEx by 164.0% in the fourth quarter. Waddell & Associates LLC now owns 1,188,140 shares of the shipping service provider's stock worth $343,206,000 after acquiring an additional 738,122 shares in the last quarter. Finally, Two Sigma Investments LP increased its holdings in shares of FedEx by 3,211.5% in the third quarter. Two Sigma Investments LP now owns 549,306 shares of the shipping service provider's stock worth $129,532,000 after acquiring an additional 532,718 shares in the last quarter. 84.47% of the stock is owned by institutional investors.

FedEx Price Performance

Shares of FDX opened at $306.08 on Tuesday. The stock has a market capitalization of $73.03 billion, a P/E ratio of 16.54, a P/E/G ratio of 1.61 and a beta of 1.29. FedEx Corporation has a twelve month low of $172.88 and a twelve month high of $345.36. The company has a 50 day moving average of $340.67 and a 200-day moving average of $349.72. The company has a quick ratio of 1.44, a current ratio of 1.48 and a debt-to-equity ratio of 0.74.

FedEx (NYSE:FDX - Get Free Report) last announced its quarterly earnings data on Tuesday, June 23rd. The shipping service provider reported $6.31 EPS for the quarter, topping analysts' consensus estimates of $5.91 by $0.40. FedEx had a net margin of 4.68% and a return on equity of 16.49%. The business had revenue of $25.01 billion for the quarter, compared to analyst estimates of $24.04 billion. During the same quarter in the previous year, the firm posted $6.07 earnings per share. The firm's revenue for the quarter was up 12.5% on a year-over-year basis. FedEx has set its FY 2027 guidance at 16.900-18.100 EPS. As a group, equities research analysts forecast that FedEx Corporation will post 17.6 EPS for the current fiscal 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 given a dividend of $1.22 per share. The ex-dividend date of this dividend was Monday, June 22nd. This represents a $4.88 annualized dividend and a yield of 1.6%. FedEx's payout ratio is 26.36%.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on FDX. Truist Financial decreased their price objective on FedEx from $425.00 to $365.00 and set a "buy" rating for the company in a research report on Thursday, June 25th. Sanford C. Bernstein set a $397.00 target price on shares of FedEx in a report on Wednesday, June 24th. Stephens raised shares of FedEx to a "strong-buy" rating in a research note on Wednesday, July 8th. JPMorgan Chase & Co. reiterated a "buy" rating on shares of FedEx in a report on Friday, June 26th. Finally, BMO Capital Markets restated a "market perform" rating on shares of FedEx in a report on Wednesday, June 24th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned 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 presently has an average rating of "Moderate Buy" and a consensus target price of $350.54.

Insider Buying and Selling

In other FedEx news, Director Paul S. Walsh sold 5,042 shares of the business's stock in a transaction dated 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 of the company's stock, valued at $5,309,477.04. The trade was a 23.56% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. 0.53% of the stock is owned by company insiders.

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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