FedEx Corporation $FDX is Dodge & Cox's 8th Largest Position

Key Points

• Dodge & Cox boosted its stake in FedEx by 12.0% to 16,225,160 shares, making FDX its 8th-largest holding (FDX = 2.1% of the portfolio) and representing a 6.88% ownership of FedEx valued at about $3.83 billion.
• FedEx reported a quarterly beat (EPS $4.82 vs. $4.02 consensus; revenue $23.47B vs. $22.79B) and set FY2026 guidance of $17.80–$19.00 EPS, while announcing a quarterly dividend of $1.45 (annualized yield ~1.6%).
• Management is accelerating a major AI overhaul to deploy AI agents in over 50% of core workflows by 2028 to boost productivity and cut costs, but the company faces legal risk from litigation over surcharge collections and macro/trade uncertainty that could pressure volumes and margins.

Dodge & Cox increased its position in shares of FedEx Corporation (NYSE:FDX - Free Report) by 12.0% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 16,225,160 shares of the shipping service provider's stock after purchasing an additional 1,742,666 shares during the period. FedEx accounts for 2.1% of Dodge & Cox's portfolio, making the stock its 8th largest holding. Dodge & Cox owned 6.88% of FedEx worth $3,826,055,000 at the end of the most recent quarter.

Several other hedge funds also recently bought and sold shares of the company. Brighton Jones LLC raised its holdings in FedEx by 12.8% during the fourth quarter. Brighton Jones LLC now owns 1,825 shares of the shipping service provider's stock valued at $514,000 after acquiring an additional 207 shares during the period. Empowered Funds LLC lifted its position in shares of FedEx by 78.9% in the first quarter. Empowered Funds LLC now owns 10,311 shares of the shipping service provider's stock valued at $2,514,000 after acquiring an additional 4,548 shares in the last quarter. Sivia Capital Partners LLC bought a new position in shares of FedEx in the second quarter worth about $586,000. Connor Clark & Lunn Investment Management Ltd. purchased a new stake in shares of FedEx during the second quarter worth about $3,121,000. Finally, Geode Capital Management LLC grew its position in shares of FedEx by 0.6% during the second quarter. Geode Capital Management LLC now owns 4,947,670 shares of the shipping service provider's stock worth $1,124,524,000 after purchasing an additional 28,450 shares in the last quarter. Institutional investors own 84.47% of the company's stock.

FedEx News Roundup

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: FedEx is accelerating an AI overhaul — the company plans to replace legacy systems and deploy AI “agents” in >50% of core workflows by 2028, aiming to boost productivity and cut operating costs if execution goes smoothly. FedEx Replaces Legacy Tech to Empower AI Agents
• Positive Sentiment: Analyst optimism: JPMorgan is forecasting strong price appreciation for FDX, supporting buyer interest and helping justify the recent run-up. JPMorgan Forecasts Strong Price Appreciation for FedEx
• Positive Sentiment: Street expects FedEx to beat upcoming earnings; consensus commentary highlights revenue leverage and margin upside, which can sustain momentum into the report. FedEx Expected to Beat Earnings Estimates
• Positive Sentiment: Product/ESG initiative: FedEx is offering reusable packaging for closed-loop B2B shipping — a small but positive signal for cost savings and sustainability-focused customers. FedEx Offers Reusable Packaging
• Neutral Sentiment: Investor day materials and slides have been published, giving more transparency on strategy (AI, margins, capital allocation) but much depends on execution and updated guidance. Analyst/Investor Day Slideshow
• Negative Sentiment: Legal risk: FedEx is suing the U.S. government to limit exposure to multibillion-dollar class-action suits over surcharge collections — ongoing litigation could create headline risk and potential liabilities. Why FedEx Is Suing US Government
• Negative Sentiment: Valuation concerns: some analysts argue the stock’s >50% one‑year rally leaves limited margin of safety and that valuation may be extended — this is weighing on more value‑oriented investors. Valuation Has Already Traveled Quite Too Far
• Negative Sentiment: Macro/trade risk: reports that the U.S. is considering higher tariffs add uncertainty for global volumes and costs, a potential headwind for freight demand and margins. Trump Tariffs Live Updates

FedEx Stock Performance

NYSE FDX opened at $352.09 on Friday. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.27 and a quick ratio of 1.23. FedEx Corporation has a 1-year low of $194.29 and a 1-year high of $392.86. The business has a 50 day simple moving average of $346.49 and a two-hundred day simple moving average of $286.56. The stock has a market capitalization of $82.78 billion, a PE ratio of 19.41, a P/E/G ratio of 1.68 and a beta of 1.29.

FedEx (NYSE:FDX - Get Free Report) last issued its quarterly earnings data on Thursday, December 18th. The shipping service provider reported $4.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.02 by $0.80. FedEx had a return on equity of 16.63% and a net margin of 4.81%.The business had revenue of $23.47 billion for the quarter, compared to analysts' expectations of $22.79 billion. During the same period in the prior year, the firm earned $4.05 EPS. The company's revenue for the quarter was up 6.8% on a year-over-year basis. FedEx has set its FY 2026 guidance at 17.800-19.000 EPS. On average, research analysts predict that FedEx Corporation will post 19.14 EPS for the current fiscal year.

FedEx Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Monday, March 9th will be given a dividend of $1.45 per share. The ex-dividend date is Monday, March 9th. This represents a $5.80 annualized dividend and a yield of 1.6%. FedEx's dividend payout ratio (DPR) is 31.97%.

Analyst Ratings Changes

A number of research analysts recently commented on FDX shares. Oppenheimer reissued a "market perform" rating on shares of FedEx in a report on Friday, December 19th. JPMorgan Chase & Co. increased their price objective on shares of FedEx from $294.00 to $424.00 and gave the company a "neutral" rating in a report on Tuesday. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $479.00 price objective on shares of FedEx in a research report on Friday, February 13th. Zacks Research upgraded shares of FedEx from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, February 17th. Finally, Evercore raised their target price on shares of FedEx from $364.00 to $380.00 in a research note on Tuesday, February 24th. Two analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, nine have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, FedEx currently has an average rating of "Moderate Buy" and an average price target of $371.19.

FedEx Company 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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