Franklin Resources Inc. Increases Stock Position in FedEx Corporation $FDX

Key Points

• Franklin Resources increased its FedEx stake by 6.6% in the fourth quarter, bringing its holdings to more than 5.1 million shares valued at about $1.48 billion.
• FedEx reported better-than-expected quarterly results, with earnings of $5.25 per share versus estimates of $4.12 and revenue of $24 billion, helped by 8.3% year-over-year revenue growth.
• Analysts remain broadly positive on FedEx, with a Moderate Buy consensus and an average price target of $372.41, while recent FedEx Freight spinoff commentary has added to the bullish outlook.

Franklin Resources Inc. lifted its holdings in FedEx Corporation (NYSE:FDX - Free Report) by 6.6% in the 4th quarter, according to its most recent filing with the SEC. The firm owned 5,133,231 shares of the shipping service provider's stock after purchasing an additional 318,293 shares during the period. Franklin Resources Inc. owned about 2.18% of FedEx worth $1,482,785,000 at the end of the most recent quarter.

Several other hedge funds have also recently modified their holdings of the business. OneAscent Financial Services LLC lifted its position in shares of FedEx by 1.7% in the 4th quarter. OneAscent Financial Services LLC now owns 1,699 shares of the shipping service provider's stock worth $491,000 after purchasing an additional 29 shares during the period. LRI Investments LLC lifted its position in FedEx by 5.2% during the fourth quarter. LRI Investments LLC now owns 632 shares of the shipping service provider's stock valued at $183,000 after acquiring an additional 31 shares during the last quarter. Cary Street Partners Investment Advisory LLC lifted its position in FedEx by 11.9% during the fourth quarter. Cary Street Partners Investment Advisory LLC now owns 292 shares of the shipping service provider's stock valued at $84,000 after acquiring an additional 31 shares during the last quarter. Legacy Bridge LLC lifted its position in FedEx by 33.0% during the fourth quarter. Legacy Bridge LLC now owns 133 shares of the shipping service provider's stock valued at $38,000 after acquiring an additional 33 shares during the last quarter. Finally, True Wealth Design LLC lifted its position in FedEx by 8.2% during the fourth quarter. True Wealth Design LLC now owns 462 shares of the shipping service provider's stock valued at $133,000 after acquiring an additional 35 shares during the last quarter. Hedge funds and other institutional investors own 84.47% of the company's stock.

FedEx Trading Up 0.2%

NYSE FDX opened at $331.59 on Monday. The company has a fifty day simple moving average of $373.71 and a two-hundred day simple moving average of $340.84. The stock has a market cap of $79.12 billion, a P/E ratio of 17.65, a P/E/G ratio of 1.51 and a beta of 1.28. FedEx Corporation has a 12-month low of $172.88 and a 12-month high of $341.14. The company has a current ratio of 1.47, a quick ratio of 1.44 and a debt-to-equity ratio of 0.77.

FedEx (NYSE:FDX - Get Free Report) last released its quarterly earnings data 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. The firm had revenue of $24 billion for the quarter, compared to analyst estimates of $23.44 billion. FedEx had a net margin of 4.88% and a return on equity of 16.76%. The business's quarterly revenue was up 8.3% compared to the same quarter last year. During the same quarter in the prior year, the business earned $4.51 earnings per share. On average, analysts forecast that FedEx Corporation will post 19.72 earnings per share for the current year.

Key Headlines Impacting FedEx

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: FedEx Freight’s debut as a separate company drew fresh analyst coverage and upbeat commentary, with some observers calling it a potential “true winner” and a catalyst for value creation at FedEx. FedEx Freight Stock (FDXF) Soars on Fresh Analyst Coverage
• Positive Sentiment: Analysts and market commentators said the spinoff may help FedEx streamline operations and fully launch its Network 2.0 initiative, which could improve margins and long-term earnings power. Is FedEx a Buy Following Its FedEx Freight Spinoff?
• Positive Sentiment: Jim Cramer highlighted the new breakup of FedEx as a long-awaited move that could be viewed favorably by investors looking for a cleaner, more focused company structure. Why Jim Cramer Says Newly Public FedEx Freight Stock Could Be a ‘True Winner’
• Neutral Sentiment: FedEx has recently outperformed some industrial peers, but commentary remains mixed, with valuation concerns and conflicting analyst views keeping enthusiasm in check. FedEx Stock: Is FDX Outperforming the Industrial Sector?
• Negative Sentiment: One FreightWaves report said a FedEx partner airline may face service risk on Caribbean routes without an FAA waiver, which could raise operational uncertainty for parts of the cargo network. FedEx partner airline says Caribbean service at risk without FAA waiver

Insider Buying and Selling at FedEx

In other news, EVP Gina F. Adams sold 20,450 shares of the 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 sale, the executive vice president owned 19,403 shares in the company, valued at $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 Securities & Exchange Commission, which is available through the SEC website. Also, Director Susan C. Schwab sold 5,795 shares of FedEx stock in a transaction that occurred on Wednesday, April 15th. The shares were sold at an average price of $369.00, for a total value of $2,138,355.00. Following the transaction, the director owned 10,038 shares of the company's stock, valued at approximately $3,704,022. This represents a 36.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 48,104 shares of company stock worth $17,599,006 over the last ninety days. 0.53% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on FDX. Raymond James Financial began coverage on shares of FedEx in a research report on Wednesday. They set an "outperform" rating and a $180.00 target price for the company. Argus increased their target price on shares of FedEx from $350.00 to $400.00 and gave the company a "buy" rating in a research report on Monday, April 6th. Truist Financial set a $155.00 target price on shares of FedEx in a research report on Tuesday, June 2nd. Zacks Research cut shares of FedEx from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, March 18th. Finally, Deutsche Bank Aktiengesellschaft cut shares of FedEx from a "buy" rating to a "hold" rating in a research report on Wednesday, May 27th. Eighteen equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $372.41.

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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