New York State Teachers Retirement System Increases Position in FedEx Corporation $FDX

Key Points

• New York State Teachers Retirement System increased its FedEx stake by 6.0% in the first quarter, ending with 209,112 shares valued at about $74.5 million.
• FedEx recently reported better-than-expected quarterly results, posting EPS of $6.31 versus estimates of $5.91 and revenue of $25.01 billion versus expectations of $24.04 billion. Revenue rose 12.5% year over year.
• The company also highlighted several strategic and market developments, including the sale of its FedEx Supply Chain unit and analyst support for the newly spun-off FedEx Freight, while Wall Street overall still rates the stock a Moderate Buy.

New York State Teachers Retirement System grew its position in FedEx Corporation (NYSE:FDX - Free Report) by 6.0% during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 209,112 shares of the shipping service provider's stock after purchasing an additional 11,876 shares during the quarter. New York State Teachers Retirement System owned approximately 0.09% of FedEx worth $74,482,000 at the end of the most recent reporting period.

Other institutional investors have also modified their holdings of the company. Brighton Jones LLC boosted its position in shares of FedEx by 12.8% during the 4th quarter. Brighton Jones LLC now owns 1,825 shares of the shipping service provider's stock worth $514,000 after acquiring an additional 207 shares in the last quarter. Empowered Funds LLC raised its position in shares of FedEx by 78.9% during the 1st quarter. Empowered Funds LLC now owns 10,311 shares of the shipping service provider's stock worth $2,514,000 after acquiring an additional 4,548 shares in the last quarter. Sivia Capital Partners LLC acquired a new stake in shares of FedEx during the 2nd quarter worth about $586,000. Quantbot Technologies LP purchased a new stake in FedEx during the second quarter worth approximately $186,000. Finally, Jump Financial LLC acquired a new position in FedEx in the second quarter valued at approximately $456,000. 84.47% of the stock is owned by hedge funds and other institutional investors.

FedEx Price Performance

FedEx stock opened at $313.21 on Friday. 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 business has a 50 day simple moving average of $357.86 and a 200-day simple moving average of $347.84. FedEx Corporation has a 12 month low of $172.88 and a 12 month high of $345.36. The stock has a market capitalization of $74.73 billion, a PE ratio of 16.92, a price-to-earnings-growth ratio of 1.36 and a beta of 1.29.

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 firm had revenue of $25.01 billion for the quarter, compared to analyst estimates of $24.04 billion. FedEx had a net margin of 4.68% and a return on equity of 16.49%. FedEx's quarterly revenue was up 12.5% on a year-over-year basis. During the same period last year, the firm posted $6.07 EPS. FedEx has set its FY 2027 guidance at 16.900-18.100 EPS.

FedEx Cuts Dividend

The company also recently announced 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 1.6%. The ex-dividend date is Monday, June 22nd. FedEx's dividend payout ratio (DPR) is 26.36%.

Key Stories Impacting FedEx

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: The $1.4 billion sale of FedEx Supply Chain could help streamline operations, sharpen focus on core shipping services, and provide cash that may support margins or shareholder returns. FedEx strikes $1.4bn deal to sell logistics unit to CMA CGM
• Positive Sentiment: Goldman Sachs initiated coverage of newly spun-off FedEx Freight with a Buy rating, citing potential margin expansion and improved profitability, which could support broader investor sentiment toward the FedEx restructuring story. Goldman Sachs initiates FedEx Freight with Buy, sees 23% margin expansion upside
• Neutral Sentiment: News that CMA CGM hired a former FedEx logistics executive adds context to the deal but is not likely to materially change the near-term thesis by itself. CMA CGM hires FedEx executive Moebel to lead Ceva Logistics
• Negative Sentiment: Seeking Alpha published a cautious view arguing the bullish case for FedEx depends on a margin recovery that is not yet visible, reinforcing concerns that cost cuts may not fully offset soft demand. FedEx: The Bull Case Relies On A Margin Recovery That Isn’t Visible Yet
• Negative Sentiment: Director Paul S. Walsh sold 5,042 shares, which can signal reduced insider confidence even though the sale was relatively small compared with his remaining holdings. SEC insider transaction filing

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on FDX shares. Wall Street Zen raised shares of FedEx from a "buy" rating to a "strong-buy" rating in a report on Saturday, June 6th. Deutsche Bank Aktiengesellschaft cut shares of FedEx from a "buy" rating to a "hold" rating in a report on Wednesday, May 27th. Bank of America lifted their price target on shares of FedEx from $376.00 to $378.00 and gave the stock a "buy" rating in a research note on Wednesday, June 24th. Jefferies Financial Group began coverage on shares of FedEx in a research report on Tuesday, June 23rd. They issued a "buy" rating and a $200.00 price target for the company. Finally, Wells Fargo & Company decreased their price objective on shares of FedEx from $450.00 to $425.00 and set an "overweight" rating for the company in a research note on Wednesday, June 17th. Eighteen analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $349.60.

Insiders Place Their Bets

In other news, EVP Tracy B. Brightman sold 16,959 shares of the business's stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $363.47, for a total transaction of $6,164,087.73. Following the transaction, the executive vice president directly owned 11,052 shares in the company, valued at $4,017,070.44. The trade was a 60.54% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Kawal Preet sold 4,900 shares of the stock in a transaction dated 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 transaction, the executive vice president directly owned 10,953 shares of the company's stock, valued at $4,029,499.17. This represents a 30.91% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 53,146 shares of company stock valued at $19,235,438. Corporate insiders own 0.53% of the company's stock.

About FedEx

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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