Kestra Advisory Services LLC Boosts Stock Holdings in FedEx Corporation $FDX

Key Points

• Kestra Advisory Services increased its FedEx stake by 10.1% in the first quarter, buying 4,661 more shares and bringing its total holding to 50,711 shares worth about $18.1 million.
• FedEx beat quarterly expectations, reporting EPS of $6.31 versus the $5.91 estimate and revenue of $25.01 billion versus $24.04 billion expected, with revenue up 12.5% year over year.
• Investor and analyst activity remains mixed: FedEx announced debt tender offers tied to its capital-structure plans, while analysts’ views ranged from upgrades to lowered price targets and the stock carried a “Moderate Buy” consensus rating.

Kestra Advisory Services LLC raised its stake in FedEx Corporation (NYSE:FDX - Free Report) by 10.1% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 50,711 shares of the shipping service provider's stock after purchasing an additional 4,661 shares during the quarter. Kestra Advisory Services LLC's holdings in FedEx were worth $18,062,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also made changes to their positions in the company. Bayban acquired a new stake in FedEx during the first quarter worth about $26,000. EFG International AG acquired a new position in shares of FedEx in the 4th quarter valued at about $27,000. Wealth Watch Advisors INC acquired a new position in shares of FedEx in the 3rd quarter valued at about $28,000. Ulland Investment Advisors LLC purchased a new stake in shares of FedEx during the 4th quarter worth about $29,000. Finally, Tucker Asset Management LLC purchased a new stake in shares of FedEx during the 4th quarter worth about $29,000. 84.47% of the stock is currently owned by institutional investors and hedge funds.

FedEx Stock Up 1.2%

FedEx stock traded up $3.65 during midday trading on Friday, hitting $314.49. 1,640,197 shares of the stock were exchanged, compared to its average volume of 2,143,452. FedEx Corporation has a 1 year low of $172.88 and a 1 year high of $345.36. The firm has a market cap of $75.04 billion, a P/E ratio of 16.99 and a beta of 1.29. The company has a debt-to-equity ratio of 0.74, a current ratio of 1.48 and a quick ratio of 1.44. The company has a 50 day moving average price of $348.63 and a two-hundred day moving average price of $348.55.

FedEx (NYSE:FDX - Get Free Report) last posted its quarterly earnings data on Tuesday, June 23rd. The shipping service provider reported $6.31 earnings per share for the quarter, beating analysts' consensus estimates of $5.91 by $0.40. The company had revenue of $25.01 billion during the quarter, compared to analysts' expectations of $24.04 billion. FedEx had a net margin of 4.68% and a return on equity of 16.49%. The firm's revenue for the quarter was up 12.5% on a year-over-year basis. During the same period in the prior year, the company posted $6.07 EPS. FedEx has set its FY 2027 guidance at 16.900-18.100 EPS.

FedEx Cuts Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, July 7th. Shareholders of record on Monday, June 22nd were issued a dividend of $1.22 per share. The ex-dividend date was Monday, June 22nd. This represents a $4.88 annualized dividend and a yield of 1.6%. FedEx's payout ratio is currently 26.36%.

Key Stories Impacting FedEx

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: FedEx announced pricing for cash tender offers to repurchase up to $4.15 billion of debt, a move that can lower future interest expense and improve its balance sheet after the planned FedEx Freight spin-off. FedEx Announces Pricing for Cash Tender Offers
• Positive Sentiment: FedEx also reported early tender results for the debt offers, signaling active participation and progress on its capital-structure reshaping plan. FedEx Announces Early Tender Results of Previously Announced Cash Tender Offers
• Positive Sentiment: Analyst sentiment improved, with Stephens upgrading FedEx to “strong-buy” after earlier bullish commentary, which can help reinforce investor confidence in the stock. Zacks.com
• Positive Sentiment: Reports highlighted FedEx’s new life sciences division and ongoing efforts to expand healthcare logistics, suggesting a higher-margin growth opportunity for the company. New FedEx life sciences unit integrates healthcare logistics capabilities
• Neutral Sentiment: Some articles argued the stock may still be undervalued after its strong run, indicating upside potential but not an immediate catalyst. FedEx (FDX) Stock Looks Undervalued Even After A 65% Run
• Negative Sentiment: Investor concerns persist around Amazon’s low-cost logistics expansion, which could pressure FedEx pricing and market share over time. FedEx Reshapes Debt After FedEx Freight Spin-Off

Insider Buying and Selling

In other news, EVP Kawal Preet sold 4,900 shares of the stock in a transaction that occurred on Tuesday, April 14th. The stock was sold at an average price of $367.89, for a total transaction of $1,802,661.00. Following the completion of the transaction, the executive vice president directly owned 10,953 shares in the company, valued at approximately $4,029,499.17. This represents a 30.91% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Susan C. Schwab sold 5,795 shares of the firm's stock in a transaction that occurred on Wednesday, April 15th. The stock was sold at an average price of $369.00, for a total transaction of $2,138,355.00. Following the sale, the director directly owned 10,038 shares of the company's stock, valued at $3,704,022. The trade was a 36.60% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 53,146 shares of company stock worth $19,235,438 over the last 90 days. 0.53% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

FDX has been the subject of several recent research reports. Deutsche Bank Aktiengesellschaft lowered shares of FedEx from a "buy" rating to a "hold" rating in a research report on Wednesday, May 27th. Wells Fargo & Company decreased their price target on shares of FedEx from $450.00 to $425.00 and set an "overweight" rating for the company in a research report on Wednesday, June 17th. UBS Group lowered their price target on FedEx from $445.00 to $350.00 and set a "buy" rating for the company in a report on Wednesday, June 24th. Barclays reduced their price objective on FedEx from $450.00 to $425.00 and set an "overweight" rating on the stock in a research note on Wednesday, June 17th. Finally, The Goldman Sachs Group decreased their target price on FedEx from $405.00 to $375.00 and set a "buy" rating for the company in a research report on Monday, June 1st. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $349.60.

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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