FedEx Corporation $FDX Position Reduced by Diamond Hill Capital Management Inc.

Key Points

• Diamond Hill Capital Management cut its FedEx stake by 10% in the fourth quarter, selling 73,244 shares and leaving it with 655,987 shares valued at about $189.5 million.
• FedEx has continued to draw mostly bullish analyst sentiment: the consensus rating is “Moderate Buy,” with an average price target of $399.65. Several firms recently raised targets, though Morgan Stanley maintained an underweight view.
• The company also saw recent insider selling, including large share sales by EVP Gina F. Adams and EVP Tracy B. Brightman, while FedEx’s latest quarterly results beat expectations with $5.25 EPS on $24 billion revenue.

Diamond Hill Capital Management Inc. decreased its position in shares of FedEx Corporation (NYSE:FDX - Free Report) by 10.0% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 655,987 shares of the shipping service provider's stock after selling 73,244 shares during the period. Diamond Hill Capital Management Inc. owned 0.28% of FedEx worth $189,488,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in FDX. Grey Fox Wealth Advisors LLC bought a new stake in FedEx during the third quarter worth approximately $27,000. Wealth Watch Advisors INC bought a new stake in FedEx during the third quarter worth approximately $28,000. Ameriflex Group Inc. increased its holdings in shares of FedEx by 103.3% in the third quarter. Ameriflex Group Inc. now owns 124 shares of the shipping service provider's stock valued at $29,000 after buying an additional 63 shares in the last quarter. Ulland Investment Advisors LLC bought a new position in shares of FedEx in the fourth quarter valued at $29,000. Finally, Tucker Asset Management LLC bought a new position in shares of FedEx in the fourth quarter valued at $29,000. Institutional investors own 84.47% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have issued reports on FDX shares. Weiss Ratings raised FedEx from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, May 15th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $479.00 price target on shares of FedEx in a report on Friday, February 13th. Susquehanna upped their price target on FedEx from $410.00 to $455.00 and gave the company a "positive" rating in a report on Friday, March 20th. Bank of America upped their price target on FedEx from $431.00 to $440.00 and gave the company a "buy" rating in a report on Friday, March 20th. Finally, Morgan Stanley upped their price target on FedEx from $220.00 to $230.00 and gave the company an "underweight" rating in a report on Friday, March 20th. Eighteen investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $399.65.

Insider Activity at FedEx

In other news, EVP Gina F. Adams sold 20,450 shares of the company'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 directly owned 19,403 shares of the company's stock, valued at approximately $7,110,229.35. This represents a 51.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Tracy B. Brightman sold 16,959 shares of the company's stock in a transaction on 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 transaction, the executive vice president directly owned 11,052 shares in the company, valued at $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. Over the last ninety days, insiders sold 48,104 shares of company stock valued at $17,599,006. 0.53% of the stock is owned by insiders.

FedEx Price Performance

Shares of NYSE:FDX opened at $389.17 on Friday. The company's fifty day moving average is $370.39 and its two-hundred day moving average is $332.38. The company has a quick ratio of 1.44, a current ratio of 1.47 and a debt-to-equity ratio of 0.77. FedEx Corporation has a 12-month low of $214.35 and a 12-month high of $404.03. The company has a market cap of $92.86 billion, a P/E ratio of 20.71, a price-to-earnings-growth ratio of 1.47 and a beta of 1.29.

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, topping analysts' consensus estimates of $4.12 by $1.13. FedEx had a net margin of 4.88% and a return on equity of 16.76%. The business had revenue of $24 billion for the quarter, compared to the consensus estimate of $23.44 billion. During the same period in the prior year, the business posted $4.51 earnings per share. FedEx's revenue for the quarter was up 8.3% compared to the same quarter last year. Equities analysts expect that FedEx Corporation will post 19.72 earnings per share for the current fiscal year.

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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