Hennessy Advisors Inc. Takes Position in FedEx Corporation $FDX

Key Points

• Hennessy Advisors initiated a FedEx position of 23,200 shares worth approximately $7.3 million in the second quarter. Institutional investors collectively own 84.47% of FedEx.
• FedEx received potentially supportive developments, including modified defense contracts worth about $2.72 billion and a planned $400 million investment in Indian air-cargo hubs.
• Analysts maintain a “Moderate Buy” consensus with an average $350.54 price target, while FedEx reported quarterly EPS of $5.88 and declared a $1.22 quarterly dividend, equivalent to a 1.5% yield.

Hennessy Advisors Inc. bought a new stake in FedEx Corporation (NYSE:FDX - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund bought 23,200 shares of the shipping service provider's stock, valued at approximately $7,265,000.

A number of other hedge funds have also modified their holdings of the business. BlackRock Inc. purchased a new stake in FedEx in the second quarter valued at approximately $6,508,103,000. Primecap Management Co. CA purchased a new position in shares of FedEx during the second quarter worth $2,554,138,000. Norges Bank acquired a new stake in shares of FedEx in the fourth quarter valued at $859,085,000. Boston Partners acquired a new stake in shares of FedEx in the third quarter valued at $468,195,000. Finally, Bank of America Corp DE acquired a new stake in shares of FedEx in the second quarter valued at $579,171,000. 84.47% of the stock is currently owned by hedge funds and other institutional investors.

More FedEx News

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: The U.S. Transportation Command awarded FedEx and United Parcel Service modified defense contracts valued at approximately $2.72 billion each. The agreements run through September 2030 and could provide FedEx with steady, multiyear government revenue. FedEx Corporation is Growing Faster, but Could United Parcel Have More Margin Upside?
• Positive Sentiment: FedEx committed about $400 million to air-cargo hubs in Delhi and Mumbai. The facilities will add more than 500,000 square feet of capacity and position the company to benefit from India’s expected logistics growth. FedEx Commits $400 Million to Indian Air Cargo Growth With Delhi, Mumbai Hubs
• Positive Sentiment: The board declared a quarterly dividend of $1.22 per share. Commentators also argue that FedEx’s growth profile and valuation could offer upside, with Wall Street’s average recommendation remaining bullish, though analyst optimism should be treated cautiously. Following FedEx Dividend and India Hub Plans, Are Shares Below Fair Value?
• Neutral Sentiment: FedEx’s freight separation is prompting investors to compare the standalone freight business with the remaining parcel and logistics company. The transaction may sharpen strategic focus, but the preferred investment depends on execution and the future performance of each stock. FedEx Just Spun Off Its Freight Division. Which Stock Should You Own?
• Neutral Sentiment: FedEx shareholders will vote on three governance proposals, creating a potential near-term corporate-governance catalyst, although the available report does not specify the proposals or their likely effect. FedEx Shareholders Will Vote On Three Governance Proposals
• Negative Sentiment: Investors continue to weigh tariff uncertainty, shifting trade routes and geopolitical disruption. FedEx’s CEO believes supply-chain “reglobalization” could create opportunities, but those conditions can also pressure volumes, costs and margins. The Supply-Chain Savant: How FedEx CEO Raj Subramaniam Leads Through Reglobalization

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on FDX shares. Deutsche Bank Aktiengesellschaft cut shares of FedEx from a "buy" rating to a "hold" rating in a report on Wednesday, May 27th. Evercore set a $165.00 price target on shares of FedEx in a research report on Friday, June 26th. Rothschild & Co Redburn dropped their price target on shares of FedEx from $375.00 to $344.00 and set a "neutral" rating for the company in a research note on Tuesday, June 2nd. BMO Capital Markets reaffirmed a "market perform" rating on shares of FedEx in a research report on Wednesday, June 24th. Finally, Sanford C. Bernstein set a $397.00 price objective on FedEx in a research note on Wednesday, June 24th. One research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, nine have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $350.54.

Insiders Place Their Bets

In other FedEx news, Director Paul S. Walsh sold 5,042 shares of FedEx stock in a transaction dated Tuesday, June 30th. The stock was sold at an average price of $324.56, for a total transaction of $1,636,431.52. Following the completion of 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 Securities & Exchange Commission, which is available at this link. 0.65% of the stock is currently owned by corporate insiders.

FedEx Trading Down 0.1%

NYSE FDX opened at $331.10 on Friday. FedEx Corporation has a 52 week low of $177.05 and a 52 week high of $345.36. The firm has a 50 day moving average of $319.32 and a two-hundred day moving average of $350.71. The company has a quick ratio of 1.44, a current ratio of 1.48 and a debt-to-equity ratio of 0.74. The stock has a market capitalization of $78.36 billion, a PE ratio of 17.89, a price-to-earnings-growth ratio of 1.70 and a beta of 1.30.

FedEx (NYSE:FDX - Get Free Report) last announced its quarterly earnings data on Tuesday, July 21st. The shipping service provider reported $5.88 earnings per share for the quarter. The business had revenue of $23.26 billion for the quarter. FedEx had a net margin of 4.68% and a return on equity of 16.49%. As a group, research analysts expect that FedEx Corporation will post 17.6 EPS for the current fiscal year.

FedEx Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Monday, September 14th will be paid a $1.22 dividend. The ex-dividend date is Monday, September 14th. This represents a $4.88 dividend on an annualized basis and a yield of 1.5%. FedEx's dividend payout ratio (DPR) is currently 26.36%.

FedEx 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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