Principal Financial Group Inc. Acquires 12,442 Shares of FedEx Corporation $FDX

Key Points

• Principal Financial Group increased its FedEx stake by 5.2% in Q1, adding 12,442 shares and bringing its total holdings to 253,109 shares worth about $90.2 million.
• FedEx reported better-than-expected quarterly earnings of $6.31 per share on revenue of $25.01 billion, topping analyst estimates and posting 12.5% year-over-year revenue growth.
• Analysts remain cautiously positive on the stock, with a Moderate Buy consensus and average price target of $350.54, though several firms recently cut their targets; meanwhile, insider director Paul S. Walsh sold 5,042 shares.

Principal Financial Group Inc. raised its holdings in FedEx Corporation (NYSE:FDX - Free Report) by 5.2% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 253,109 shares of the shipping service provider's stock after acquiring an additional 12,442 shares during the period. Principal Financial Group Inc. owned about 0.11% of FedEx worth $90,152,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds also recently modified their holdings of the business. Bayban bought a new stake in FedEx during the 1st quarter worth approximately $26,000. EFG International AG bought a new position in FedEx in the fourth quarter valued at approximately $27,000. Wealth Watch Advisors INC acquired a new position in shares of FedEx in the third quarter valued at approximately $28,000. Ulland Investment Advisors LLC acquired a new position in shares of FedEx in the fourth quarter valued at approximately $29,000. Finally, Tucker Asset Management LLC bought a new stake in shares of FedEx during the fourth quarter worth $29,000. Institutional investors and hedge funds own 84.47% of the company's stock.

FedEx Stock Performance

FDX opened at $313.52 on Thursday. The business's 50-day simple moving average is $344.56 and its 200 day simple moving average is $349.32. FedEx Corporation has a 52-week low of $172.88 and a 52-week high of $345.36. The company has a debt-to-equity ratio of 0.74, a quick ratio of 1.44 and a current ratio of 1.48. The firm has a market capitalization of $74.81 billion, a PE ratio of 16.94 and a beta of 1.29.

FedEx (NYSE:FDX - Get Free Report) last posted its quarterly earnings results 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 during the quarter, compared to the consensus estimate of $24.04 billion. FedEx had a return on equity of 16.49% and a net margin of 4.68%.The business's revenue was up 12.5% compared to the same quarter last year. During the same period last year, the company earned $6.07 earnings per share. 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 was paid on Tuesday, July 7th. Investors of record on Monday, June 22nd were paid a $1.22 dividend. The ex-dividend date of this dividend was Monday, June 22nd. This represents a $4.88 annualized dividend and a dividend yield of 1.6%. FedEx's dividend payout ratio (DPR) is currently 26.36%.

Analysts Set New Price Targets

Several research firms recently commented on FDX. Stifel Nicolaus cut their price objective on shares of FedEx from $442.00 to $326.00 and set a "buy" rating on the stock in a research report on Wednesday, June 24th. Seaport Research Partners assumed coverage on FedEx in a report on Wednesday, May 27th. They set a "buy" rating for the company. Wall Street Zen raised FedEx from a "buy" rating to a "strong-buy" rating in a research note on Saturday, June 6th. Truist Financial cut their price target on FedEx from $425.00 to $365.00 and set a "buy" rating on the stock in a report on Thursday, June 25th. Finally, Wolfe Research decreased their price objective on FedEx from $427.00 to $423.00 and set an "outperform" rating for the company in a report on Tuesday, April 7th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, FedEx has an average rating of "Moderate Buy" and a consensus target price of $350.54.

Insiders Place Their Bets

In other FedEx news, Director Paul S. Walsh sold 5,042 shares of the company's stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $324.56, for a total transaction of $1,636,431.52. Following the sale, the director directly owned 16,359 shares of the company's stock, valued at approximately $5,309,477.04. This represents a 23.56% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 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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