FedEx Corporation $FDX Position Raised by SCS Capital Management LLC

Key Points

• SCS Capital Management LLC increased its FedEx stake by 12.9% in the fourth quarter, and institutional ownership remains high at 84.47% of the stock.
• FedEx reported strong quarterly results, with earnings of $5.25 per share versus $4.12 expected and revenue of $24 billion, up 8.3% year over year.
• Investor attention is centered on the upcoming FedEx Freight spinoff, which analysts and JPMorgan say could unlock value, while the new company may also benefit from index inclusion demand.

SCS Capital Management LLC raised its stake in FedEx Corporation (NYSE:FDX - Free Report) by 12.9% during the fourth quarter, according to its most recent disclosure with the SEC. The fund owned 47,652 shares of the shipping service provider's stock after buying an additional 5,454 shares during the quarter. SCS Capital Management LLC's holdings in FedEx were worth $13,817,000 as of its most recent SEC filing.

A number of other hedge funds also recently added to or reduced their stakes in FDX. Brighton Jones LLC lifted its stake in FedEx by 12.8% in the fourth quarter. Brighton Jones LLC now owns 1,825 shares of the shipping service provider's stock valued at $514,000 after buying an additional 207 shares during the last quarter. Empowered Funds LLC lifted its stake in 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 buying an additional 4,548 shares during the last quarter. Sivia Capital Partners LLC bought a new stake in shares of FedEx during the second quarter valued at about $586,000. Quantbot Technologies LP bought a new stake in shares of FedEx during the second quarter valued at about $186,000. Finally, Jump Financial LLC bought a new stake in shares of FedEx during the second quarter valued at about $456,000. 84.47% of the stock is currently owned by institutional investors.

FedEx Price Performance

Shares of FedEx stock opened at $412.11 on Monday. The company has a current ratio of 1.47, a quick ratio of 1.44 and a debt-to-equity ratio of 0.77. The company's 50-day moving average price is $376.41 and its two-hundred day moving average price is $338.62. FedEx Corporation has a 52 week low of $214.82 and a 52 week high of $413.87. The stock has a market cap of $98.33 billion, a PE ratio of 21.93, a price-to-earnings-growth ratio of 1.57 and a beta of 1.28.

FedEx (NYSE:FDX - Get Free Report) last issued its quarterly earnings results on Thursday, March 19th. The shipping service provider reported $5.25 EPS for the quarter, topping 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 for the quarter, compared to analysts' expectations of $23.44 billion. During the same period in the previous year, the business earned $4.51 earnings per share. FedEx's revenue for the quarter was up 8.3% compared to the same quarter last year. As a group, sell-side analysts anticipate that FedEx Corporation will post 19.63 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 spinoff is set to go live on June 1, and Wall Street commentary suggests the separation could unlock value for FedEx’s remaining business by sharpening its focus and simplifying the investment case. FedEx Freight (FDXF) Spinoff Goes Live June 1: Everything You Need to Know
• Positive Sentiment: JPMorgan reportedly turned constructive on FedEx ahead of the spinoff, saying the transaction could unlock more value for the parent company and supporting the stock as a buy idea. FedEx is a buy as freight business spinoff approaches, JPMorgan says
• Positive Sentiment: The new FedEx Freight company is expected to join major indexes quickly, including the S&P 500 and Dow Jones Transportation Average, which could create automatic index-related demand for the spun-off shares and reinforce investor attention on the separation. FedEx Freight Holding Set to Join Dow Jones Transportation Average
• Neutral Sentiment: Market coverage is also highlighting upcoming earnings and valuation debate around FedEx, with investors weighing whether the stock’s recent momentum can continue after the corporate restructuring.

Insider Buying and Selling at FedEx

In other FedEx news, EVP Kawal Preet sold 4,900 shares of the business's stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $367.89, for a total value of $1,802,661.00. Following the sale, the executive vice president directly owned 10,953 shares in the company, valued at approximately $4,029,499.17. The trade was a 30.91% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Tracy B. Brightman sold 16,959 shares of the business's stock in a transaction dated 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 completion of the sale, the executive vice president owned 11,052 shares in the company, valued at approximately $4,017,070.44. This trade represents a 60.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 48,104 shares of company stock valued at $17,599,006 in the last ninety days. 0.53% of the stock is owned by insiders.

Analysts Set New Price Targets

A number of brokerages recently weighed in on FDX. Raymond James Financial lifted their price objective on shares of FedEx from $305.00 to $410.00 and gave the company an "outperform" rating in a research note on Friday, February 13th. Evercore cut shares of FedEx from an "outperform" rating to a "cautious" rating in a research note on Wednesday. UBS Group began coverage on shares of FedEx in a research note on Wednesday. They set a "buy" rating and a $445.00 price objective on the stock. Truist Financial lifted their price objective on shares of FedEx from $400.00 to $425.00 and gave the company a "buy" rating in a research note on Friday, March 20th. Finally, Zacks Research cut shares of FedEx from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, March 18th. Eighteen research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, FedEx has an average rating of "Moderate Buy" and a consensus price target of $400.69.

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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