Letko Brosseau & Associates Inc. Raises Holdings in FedEx Corporation $FDX

Key Points

• Letko Brosseau & Associates increased its FedEx stake by 3.2% in the fourth quarter, ending with 223,597 shares valued at about $64.6 million.
• Insider selling continued, with executives Tracy Brightman and Gina Adams selling shares in April; company insiders sold 48,104 shares worth about $17.6 million over the last 90 days.
• FedEx reported strong quarterly results, beating earnings and revenue estimates, while analysts currently maintain a Moderate Buy consensus with a $372.41 price target. The company also announced a quarterly dividend of $1.22 and recent positive news includes a ratified pilot contract that should reduce labor risk.

Letko Brosseau & Associates Inc. grew its position in FedEx Corporation (NYSE:FDX - Free Report) by 3.2% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 223,597 shares of the shipping service provider's stock after buying an additional 6,860 shares during the quarter. Letko Brosseau & Associates Inc. owned 0.10% of FedEx worth $64,588,000 at the end of the most recent reporting period.

Several other hedge funds have also made changes to their positions in FDX. Brighton Jones LLC lifted its holdings in shares of FedEx by 12.8% in the 4th quarter. Brighton Jones LLC now owns 1,825 shares of the shipping service provider's stock worth $514,000 after buying an additional 207 shares during the period. Empowered Funds LLC lifted its holdings in shares of FedEx by 78.9% in the 1st quarter. Empowered Funds LLC now owns 10,311 shares of the shipping service provider's stock worth $2,514,000 after buying an additional 4,548 shares during the period. Sivia Capital Partners LLC purchased a new stake in shares of FedEx in the 2nd quarter worth $586,000. Quantbot Technologies LP purchased a new stake in shares of FedEx in the 2nd quarter worth $186,000. Finally, Jump Financial LLC purchased a new stake in shares of FedEx in the 2nd quarter worth $456,000. 84.47% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at FedEx

In other news, EVP Tracy B. Brightman sold 16,959 shares of the firm's stock in a transaction dated Wednesday, April 15th. The stock was sold at an average price of $363.47, for a total value of $6,164,087.73. Following the completion of the transaction, the executive vice president directly owned 11,052 shares in the company, valued at $4,017,070.44. This trade represents a 60.54% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Gina F. Adams sold 20,450 shares of the firm's stock in a transaction dated Tuesday, April 14th. The stock was sold at an average price of $366.45, for a total value of $7,493,902.50. Following the completion of the transaction, the executive vice president owned 19,403 shares of the company's stock, valued at approximately $7,110,229.35. The trade was a 51.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 48,104 shares of company stock valued at $17,599,006. 0.53% of the stock is owned by company insiders.

Analysts Set New Price Targets

FDX has been the subject of several research reports. Stephens reiterated an "overweight" rating and issued a $435.00 target price on shares of FedEx in a report on Tuesday, April 14th. Raymond James Financial initiated coverage on FedEx in a report on Wednesday, June 3rd. They issued an "outperform" rating and a $180.00 target price for the company. Jefferies Financial Group upped their target price on FedEx from $425.00 to $450.00 and gave the stock a "buy" rating in a report on Tuesday, March 3rd. HSBC lowered their target price on FedEx from $360.00 to $289.89 and set a "hold" rating for the company in a report on Monday, June 1st. Finally, Wall Street Zen raised FedEx from a "buy" rating to a "strong-buy" rating in a research report on Saturday. Eighteen analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $372.41.

FedEx Stock Up 0.5%

NYSE:FDX opened at $331.79 on Wednesday. The company has a market cap of $79.17 billion, a PE ratio of 17.66, a P/E/G ratio of 1.50 and a beta of 1.28. FedEx Corporation has a twelve month low of $172.88 and a twelve 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. The company's 50 day moving average is $373.06 and its two-hundred day moving average is $341.80.

FedEx (NYSE:FDX - Get Free Report) last announced its quarterly earnings data on Thursday, March 19th. The shipping service provider reported $5.25 earnings per share for the quarter, beating analysts' consensus estimates of $4.12 by $1.13. FedEx had a return on equity of 16.76% and a net margin of 4.88%.The business had revenue of $24 billion for the quarter, compared to analyst estimates of $23.44 billion. During the same period in the prior year, the company earned $4.51 earnings per share. The company's revenue was up 8.3% on a year-over-year basis. Analysts anticipate that FedEx Corporation will post 19.72 EPS for the current year.

FedEx Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 7th. Stockholders of record on Monday, June 22nd will be paid a $1.22 dividend. This represents a $4.88 annualized dividend and a dividend yield of 1.5%. The ex-dividend date is Monday, June 22nd. FedEx's dividend payout ratio (DPR) is presently 30.87%.

Key Stories Impacting FedEx

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: FedEx pilots ratified a new contract after nearly five years of negotiations, ending a major labor dispute and reducing operational risk for the company. Reuters: FedEx pilots ratify new wage deal, union says
• Positive Sentiment: The new pilot agreement includes roughly a 40% wage increase, which signals labor stability and could help FedEx avoid future service disruptions tied to bargaining uncertainty. Seeking Alpha: FedEx pilots ratify new contract, secure 40% pay hike
• Positive Sentiment: FedEx updated its annual dividend after the FedEx Freight spin-off, including a 5% increase in the annual dividend rate, reinforcing capital-return support for shareholders. Business Wire: FedEx Corp. Board Declares Quarterly Dividend
• Positive Sentiment: The company separately announced its quarterly dividend and a post-spin adjustment, which may be interpreted as a sign of management confidence in cash flow generation. Yahoo Finance: FedEx Updates Annual Dividend Following FedEx Freight Spin-Off
• Neutral Sentiment: FedEx also announced a new independent director and audit-oversight leadership, a governance update that is constructive but not likely a major near-term stock driver. TipRanks: FedEx Adds Independent Director to Lead Audit Oversight

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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