Norges Bank Invests $859.09 Million in FedEx Corporation $FDX

Key Points

• Norges Bank disclosed a new stake in FedEx, buying 2.97 million shares worth about $859.1 million in the fourth quarter and ending with roughly 1.26% ownership.
• FedEx recently beat quarterly expectations, posting $5.25 EPS versus the $4.12 consensus and $24 billion in revenue, with sales up 8.3% year over year.
• Wall Street remains broadly constructive, with a consensus Moderate Buy rating and a $400.69 price target, while attention is also focused on the upcoming FedEx Freight spinoff that some analysts say could unlock value.

Norges Bank acquired a new position in FedEx Corporation (NYSE:FDX - Free Report) in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm acquired 2,974,052 shares of the shipping service provider's stock, valued at approximately $859,085,000. Norges Bank owned approximately 1.26% of FedEx at the end of the most recent quarter.

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

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on FDX. Bank of America increased their price objective on FedEx from $431.00 to $440.00 and gave the stock a "buy" rating in a research report on Friday, March 20th. HSBC upgraded FedEx from a "reduce" rating to a "hold" rating and set a $360.00 price objective on the stock in a research report on Friday, March 20th. Deutsche Bank Aktiengesellschaft downgraded FedEx from a "buy" rating to a "hold" rating in a research report on Wednesday. Raymond James Financial increased their price objective on FedEx from $305.00 to $410.00 and gave the stock an "outperform" rating in a research report on Friday, February 13th. Finally, Seaport Research Partners began coverage on FedEx in a research report on Wednesday. They issued a "buy" rating on the stock. Eighteen investment 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. According to data from MarketBeat, FedEx currently has a consensus rating of "Moderate Buy" and a consensus price target of $400.69.

FedEx Stock Up 0.2%

NYSE FDX opened at $412.11 on Friday. The company has a debt-to-equity ratio of 0.77, a current ratio of 1.47 and a quick ratio of 1.44. The stock has a market capitalization of $98.33 billion, a PE ratio of 21.93, a PEG ratio of 1.57 and a beta of 1.29. FedEx Corporation has a 1 year low of $214.82 and a 1 year high of $413.87. The business's 50-day moving average is $376.41 and its 200 day moving average is $338.03.

FedEx (NYSE:FDX - Get Free Report) last posted its earnings results on Thursday, March 19th. The shipping service provider reported $5.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.12 by $1.13. The company had revenue of $24 billion for the quarter, compared to analysts' expectations of $23.44 billion. FedEx had a return on equity of 16.76% and a net margin of 4.88%.FedEx's quarterly revenue was up 8.3% on a year-over-year basis. During the same period last year, the firm earned $4.51 earnings per share. Sell-side analysts forecast that FedEx Corporation will post 19.63 earnings per share for the current year.

FedEx News Roundup

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.

Insider Buying and Selling

In related news, Director Susan C. Schwab sold 5,795 shares of the company'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 value of $2,138,355.00. Following the transaction, the director directly owned 10,038 shares of the company's stock, valued at approximately $3,704,022. This represents a 36.60% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Kawal Preet sold 4,900 shares of the company's stock in a transaction that occurred on Tuesday, April 14th. The shares were sold at an average price of $367.89, for a total value 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 $4,029,499.17. This trade represents a 30.91% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 48,104 shares of company stock valued at $17,599,006. Insiders own 0.53% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.