Jefferies Financial Group Inc. Lowers Stock Holdings in FedEx Corporation $FDX

Key Points

• Jefferies Financial Group sharply reduced its FedEx stake in the fourth quarter, cutting holdings by 87.6% and selling 18,179 shares. After the trim, it owned 2,571 shares valued at about $743,000.
• FedEx posted stronger-than-expected quarterly results, reporting EPS of $5.25 versus the $4.12 consensus and revenue of $24 billion, up 8.3% year over year. The company also saw its stock near a 12-month high, trading around $412.
• Investor focus is shifting to FedEx’s Freight spinoff, which is expected to launch June 1 and may unlock value for the parent company. Analysts, including JPMorgan, have turned more constructive, while the stock still carries a consensus “Moderate Buy” rating.

Jefferies Financial Group Inc. trimmed its stake in FedEx Corporation (NYSE:FDX - Free Report) by 87.6% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 2,571 shares of the shipping service provider's stock after selling 18,179 shares during the period. Jefferies Financial Group Inc.'s holdings in FedEx were worth $743,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors also recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its stake in shares of FedEx by 13.2% during the 3rd quarter. Vanguard Group Inc. now owns 23,442,049 shares of the shipping service provider's stock worth $5,527,870,000 after acquiring an additional 2,741,723 shares in the last quarter. Dodge & Cox raised its stake in shares of FedEx by 12.0% during the 3rd quarter. Dodge & Cox now owns 16,225,160 shares of the shipping service provider's stock worth $3,826,055,000 after acquiring an additional 1,742,666 shares in the last quarter. Franklin Resources Inc. raised its stake in shares of FedEx by 5.9% during the 3rd quarter. Franklin Resources Inc. now owns 4,814,938 shares of the shipping service provider's stock worth $1,135,411,000 after acquiring an additional 269,567 shares in the last quarter. Invesco Ltd. raised its stake in shares of FedEx by 3.1% during the 3rd quarter. Invesco Ltd. now owns 3,618,898 shares of the shipping service provider's stock worth $853,372,000 after acquiring an additional 108,426 shares in the last quarter. Finally, AQR Capital Management LLC raised its stake in shares of FedEx by 169.2% during the 3rd quarter. AQR Capital Management LLC now owns 2,733,905 shares of the shipping service provider's stock worth $638,203,000 after acquiring an additional 1,718,278 shares in the last quarter. 84.47% of the stock is owned by hedge funds and other institutional investors.

FedEx Stock Up 0.2%

FDX stock opened at $412.11 on Friday. The firm's fifty day simple moving average is $376.41 and its 200-day simple moving average is $338.03. The company has a market capitalization of $98.33 billion, a P/E ratio of 21.93, a price-to-earnings-growth ratio of 1.57 and a beta of 1.29. The company has a debt-to-equity ratio of 0.77, a current ratio of 1.47 and a quick ratio of 1.44. FedEx Corporation has a 12 month low of $214.82 and a 12 month high of $413.87.

FedEx (NYSE:FDX - Get Free Report) last released its quarterly earnings data on Thursday, March 19th. The shipping service provider reported $5.25 EPS for the quarter, beating 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 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 firm earned $4.51 EPS. The business's revenue for the quarter was up 8.3% on a year-over-year basis. As a group, equities research analysts forecast that FedEx Corporation will post 19.63 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 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.

Analyst Ratings Changes

Several research analysts recently commented on the stock. Stephens reiterated an "overweight" rating and set a $435.00 price objective on shares of FedEx in a research note on Tuesday, April 14th. Jefferies Financial Group boosted their price objective on shares of FedEx from $425.00 to $450.00 and gave the stock a "buy" rating in a research note on Tuesday, March 3rd. Evercore lowered shares of FedEx from an "outperform" rating to a "cautious" rating in a research note on Wednesday. Weiss Ratings upgraded shares of FedEx from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, May 15th. Finally, Rothschild & Co Redburn boosted their target price on shares of FedEx from $317.00 to $371.00 and gave the stock a "neutral" rating in a research report on Tuesday, February 24th. Eighteen investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, FedEx has a consensus rating of "Moderate Buy" and an average price target of $400.69.

Insider Activity

In related news, EVP Kawal Preet sold 4,900 shares of the stock in a transaction on Tuesday, April 14th. The shares were sold at an average price of $367.89, for a total transaction of $1,802,661.00. Following the sale, the executive vice president directly owned 10,953 shares of the company's stock, valued at approximately $4,029,499.17. This represents a 30.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP Gina F. Adams sold 20,450 shares of the stock in a transaction on Tuesday, April 14th. The stock was sold at an average price of $366.45, for a total transaction of $7,493,902.50. Following the sale, the executive vice president directly owned 19,403 shares in the company, valued at $7,110,229.35. This trade represents a 51.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 48,104 shares of company stock valued at $17,599,006. 0.53% of the stock is currently owned by corporate insiders.

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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