Primecap Management Co. CA Sells 459,145 Shares of FedEx Corporation (NYSE:FDX)

Key Points

• Primecap Management Co. CA reduced its stake in FedEx by 3.7%, selling 459,145 shares during the first quarter, now holding approximately 11.9 million shares valued at around $2.91 billion.
• FedEx recently increased its quarterly dividend to $1.45, reflecting a positive change from the previous $1.38 dividend, resulting in an annualized dividend of $5.80 and a yield of 2.6%.
• Due to several upgrades from research analysts, the FedEx stock currently holds an average rating of "Moderate Buy" with a target price around $283.25.

Primecap Management Co. CA lessened its stake in shares of FedEx Corporation (NYSE:FDX - Free Report) by 3.7% during the first quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 11,931,800 shares of the shipping service provider's stock after selling 459,145 shares during the period. FedEx accounts for about 2.4% of Primecap Management Co. CA's portfolio, making the stock its 8th largest position. Primecap Management Co. CA owned approximately 4.98% of FedEx worth $2,908,734,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors also recently modified their holdings of the stock. Brighton Jones LLC raised its holdings in FedEx by 12.8% during the fourth 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 last quarter. Cerity Partners LLC raised its holdings in FedEx by 3.6% during the fourth quarter. Cerity Partners LLC now owns 62,520 shares of the shipping service provider's stock worth $17,560,000 after buying an additional 2,175 shares during the last quarter. Employees Retirement System of Texas raised its holdings in FedEx by 13.6% during the fourth quarter. Employees Retirement System of Texas now owns 17,578 shares of the shipping service provider's stock worth $4,945,000 after buying an additional 2,100 shares during the last quarter. German American Bancorp Inc. raised its holdings in FedEx by 1.2% during the fourth quarter. German American Bancorp Inc. now owns 26,417 shares of the shipping service provider's stock worth $7,432,000 after buying an additional 326 shares during the last quarter. Finally, Applied Finance Capital Management LLC acquired a new position in FedEx during the fourth quarter worth $967,000. Institutional investors and hedge funds own 84.47% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the stock. Wall Street Zen upgraded shares of FedEx from a "hold" rating to a "buy" rating in a report on Saturday, July 26th. BNP Paribas Exane upgraded shares of FedEx from an "underperform" rating to an "outperform" rating and set a $270.00 target price for the company in a research note on Thursday, July 3rd. Truist Financial reiterated a "buy" rating and issued a $275.00 target price on shares of FedEx in a research note on Wednesday, June 25th. Wells Fargo & Company upped their target price on shares of FedEx from $220.00 to $235.00 and gave the stock an "equal weight" rating in a research note on Wednesday, June 25th. Finally, Barclays reiterated an "overweight" rating and issued a $320.00 target price (down previously from $330.00) on shares of FedEx in a research note on Wednesday, June 25th. Two equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating, nineteen have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $283.25.

FedEx Price Performance

Shares of NYSE:FDX opened at $222.40 on Wednesday. The company has a quick ratio of 1.15, a current ratio of 1.19 and a debt-to-equity ratio of 0.68. The firm has a market capitalization of $52.46 billion, a PE ratio of 13.18, a P/E/G ratio of 1.13 and a beta of 1.30. FedEx Corporation has a twelve month low of $194.29 and a twelve month high of $308.53. The company has a 50-day moving average price of $227.92 and a two-hundred day moving average price of $234.41.

FedEx (NYSE:FDX - Get Free Report) last issued its earnings results on Tuesday, June 24th. The shipping service provider reported $6.07 earnings per share for the quarter, topping analysts' consensus estimates of $5.98 by $0.09. The firm had revenue of $22.20 billion during the quarter, compared to analyst estimates of $21.86 billion. FedEx had a net margin of 4.65% and a return on equity of 16.34%. During the same quarter last year, the business earned $5.41 earnings per share. Equities analysts forecast that FedEx Corporation will post 19.14 EPS for the current year.

FedEx Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, July 8th. Stockholders of record on Monday, June 23rd were issued a $1.45 dividend. The ex-dividend date of this dividend was Monday, June 23rd. This is a positive change from FedEx's previous quarterly dividend of $1.38. This represents a $5.80 dividend on an annualized basis and a dividend yield of 2.6%. FedEx's payout ratio is currently 34.36%.

Insider Transactions at FedEx

In other news, Director Paul S. Walsh sold 3,610 shares of the stock in a transaction dated Tuesday, July 8th. The shares were sold at an average price of $238.29, for a total value of $860,226.90. Following the sale, the director directly owned 15,513 shares of the company's stock, valued at approximately $3,696,592.77. This represents a 18.88% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Marvin R. Ellison sold 3,610 shares of the stock in a transaction dated Wednesday, July 9th. The stock was sold at an average price of $236.94, for a total transaction of $855,353.40. Following the completion of the sale, the director directly owned 7,720 shares in the company, valued at approximately $1,829,176.80. The trade was a 31.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 9,343 shares of company stock valued at $2,228,816. 8.87% of the stock is currently owned by corporate insiders.

FedEx Company Profile

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates through FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services segments. The FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; and time-critical transportation services.

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