Jefferies Financial Group Inc. Takes Position in FedEx Corporation $FDX

Key Points

• Jefferies Financial Group initiated a FedEx position by purchasing 6,764 shares valued at approximately $2.1 million. Institutional investors collectively own 84.47% of FedEx’s outstanding stock.
• FedEx secured a modified defense contract worth about $2.72 billion and committed roughly $400 million to new air-cargo hubs in Delhi and Mumbai, supporting long-term revenue and logistics growth.
• FedEx reported quarterly earnings of $5.88 per share on $23.26 billion in revenue and declared a $1.22 quarterly dividend, or $4.88 annually. Analysts maintain a “Moderate Buy” consensus with an average price target of $350.54.

Jefferies Financial Group Inc. bought a new position in FedEx Corporation (NYSE:FDX - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund bought 6,764 shares of the shipping service provider's stock, valued at approximately $2,118,000.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Public Employees Retirement System of Ohio bought a new position in shares of FedEx in the second quarter valued at approximately $30,399,000. MASTERINVEST Kapitalanlage GmbH bought a new stake in shares of FedEx during the 2nd quarter worth $855,000. Capstone Investment Advisors LLC acquired a new position in FedEx in the 2nd quarter valued at $2,586,000. Parvin Asset Management LLC acquired a new position in FedEx in the 2nd quarter valued at $99,000. Finally, Proficio Capital Partners LLC bought a new position in FedEx in the 2nd quarter worth $1,076,000. Institutional investors and hedge funds own 84.47% of the company's stock.

Key Headlines Impacting FedEx

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

FedEx Price Performance

Shares of NYSE:FDX opened at $331.10 on Friday. The firm has a market capitalization of $78.36 billion, a PE ratio of 17.89, a PEG ratio of 1.70 and a beta of 1.30. The company has a current ratio of 1.48, a quick ratio of 1.44 and a debt-to-equity ratio of 0.74. FedEx Corporation has a 1-year low of $177.05 and a 1-year high of $345.36. The business's 50 day moving average is $319.32 and its 200-day moving average is $350.71.

FedEx (NYSE:FDX - Get Free Report) last issued its earnings results on Tuesday, July 21st. The shipping service provider reported $5.88 EPS for the quarter. FedEx had a return on equity of 16.49% and a net margin of 4.68%.The firm had revenue of $23.26 billion during the quarter. Sell-side analysts predict that FedEx Corporation will post 17.6 earnings per share for the current year.

FedEx Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Monday, September 14th will be given a dividend of $1.22 per share. This represents a $4.88 annualized dividend and a dividend yield of 1.5%. The ex-dividend date is Monday, September 14th. FedEx's payout ratio is 26.36%.

Analyst Ratings Changes

A number of equities research analysts have issued reports on the stock. UBS Group decreased their price target on shares of FedEx from $445.00 to $350.00 and set a "buy" rating for the company in a report on Wednesday, June 24th. Evercore set a $165.00 price objective on FedEx in a research report on Friday, June 26th. Sanford C. Bernstein set a $397.00 price target on FedEx in a research report on Wednesday, June 24th. Stephens raised FedEx to a "strong-buy" rating in a research report on Wednesday, July 8th. Finally, Deutsche Bank Aktiengesellschaft lowered shares of FedEx from a "buy" rating to a "hold" rating in a research report on Wednesday, May 27th. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $350.54.

Insiders Place Their Bets

In related news, Director Paul S. Walsh sold 5,042 shares of the stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $324.56, for a total value of $1,636,431.52. Following the completion of the transaction, the director owned 16,359 shares of the company's stock, valued at $5,309,477.04. This represents a 23.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.65% of the stock is currently owned by insiders.

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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