Rakuten Investment Management Inc. Makes New $11.71 Million Investment in FedEx Corporation $FDX

Key Points

• Rakuten Investment Management acquired 35,973 FedEx shares worth approximately $11.71 million, adding to strong institutional ownership of 84.47%.
• FedEx reported quarterly earnings of $5.88 per share on $23.26 billion in revenue, while analysts expect about $17.60 in full-year EPS.
• The company declared a quarterly dividend of $1.22 per share, equivalent to an annualized $4.88 payout and a 1.5% yield; analysts maintain a “Moderate Buy” consensus with an average target price of $350.54.

Rakuten Investment Management Inc. acquired a new position in shares of FedEx Corporation (NYSE:FDX - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm acquired 35,973 shares of the shipping service provider's stock, valued at approximately $11,706,000.

Other institutional investors also recently modified their holdings of the company. Hollencrest Capital Management bought a new position in FedEx during the first quarter worth $25,000. Bayban bought a new stake in FedEx in the first quarter valued at $26,000. Solstein Capital LLC bought a new stake in FedEx in the second quarter valued at $27,000. EFG International AG acquired a new position in shares of FedEx during the fourth quarter valued at about $27,000. Finally, Wealth Watch Advisors INC acquired a new position in shares of FedEx during the third quarter valued at about $28,000. Institutional investors and hedge funds own 84.47% of the company's stock.

FedEx Trading Down 0.1%

NYSE:FDX opened at $331.10 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. FedEx Corporation has a one year low of $177.05 and a one year high of $345.36. The company has a market cap of $78.36 billion, a PE ratio of 17.89, a PEG ratio of 1.71 and a beta of 1.30. The firm has a 50-day moving average of $319.32 and a 200-day moving average of $350.71.

FedEx (NYSE:FDX - Get Free Report) last announced its quarterly earnings results on Tuesday, July 21st. The shipping service provider reported $5.88 earnings per share for the quarter. The business had revenue of $23.26 billion for the quarter. FedEx had a net margin of 4.68% and a return on equity of 16.49%. As a group, equities research analysts expect that FedEx Corporation will post 17.6 EPS for the current fiscal year.

FedEx Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Monday, September 14th will be issued a $1.22 dividend. This represents a $4.88 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date is Monday, September 14th. FedEx's dividend payout ratio (DPR) is currently 26.36%.

Analyst Ratings Changes

Several analysts have recently commented on FDX shares. Rothschild & Co Redburn reduced their target price on FedEx from $375.00 to $344.00 and set a "neutral" rating for the company in a research note on Tuesday, June 2nd. Stephens raised FedEx to a "strong-buy" rating in a research note on Wednesday, July 8th. UBS Group cut their price target on FedEx from $445.00 to $350.00 and set a "buy" rating on the stock in a report on Wednesday, June 24th. Barclays reduced their price objective on FedEx from $450.00 to $425.00 and set an "overweight" rating for the company in a research note on Wednesday, June 17th. Finally, Wells Fargo & Company decreased their price objective on FedEx from $450.00 to $425.00 and set an "overweight" rating for the company in a report on Wednesday, June 17th. One research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $350.54.

Key FedEx News

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: The U.S. Transportation Command awarded FedEx and United Parcel Service modified defense contracts valued at approximately $2.72 billion each. The agreements run through September 2030 and could provide FedEx with steady, multiyear government revenue. FedEx Corporation is Growing Faster, but Could United Parcel Have More Margin Upside?
• Positive Sentiment: FedEx committed about $400 million to air-cargo hubs in Delhi and Mumbai. The facilities will add more than 500,000 square feet of capacity and position the company to benefit from India’s expected logistics growth. FedEx Commits $400 Million to Indian Air Cargo Growth With Delhi, Mumbai Hubs
• Positive Sentiment: The board declared a quarterly dividend of $1.22 per share. Commentators also argue that FedEx’s growth profile and valuation could offer upside, with Wall Street’s average recommendation remaining bullish, though analyst optimism should be treated cautiously. Following FedEx Dividend and India Hub Plans, Are Shares Below Fair Value?
• Neutral Sentiment: FedEx’s freight separation is prompting investors to compare the standalone freight business with the remaining parcel and logistics company. The transaction may sharpen strategic focus, but the preferred investment depends on execution and the future performance of each stock. FedEx Just Spun Off Its Freight Division. Which Stock Should You Own?
• Neutral Sentiment: FedEx shareholders will vote on three governance proposals, creating a potential near-term corporate-governance catalyst, although the available report does not specify the proposals or their likely effect. FedEx Shareholders Will Vote On Three Governance Proposals
• Negative Sentiment: Investors continue to weigh tariff uncertainty, shifting trade routes and geopolitical disruption. FedEx’s CEO believes supply-chain “reglobalization” could create opportunities, but those conditions can also pressure volumes, costs and margins. The Supply-Chain Savant: How FedEx CEO Raj Subramaniam Leads Through Reglobalization

Insider Activity

In related news, Director Paul S. Walsh sold 5,042 shares of FedEx stock in a transaction that occurred on Tuesday, June 30th. The stock was sold at an average price of $324.56, for a total transaction of $1,636,431.52. Following the transaction, the director owned 16,359 shares of the company's stock, valued at $5,309,477.04. The trade was a 23.56% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.65% of the stock is currently owned by insiders.

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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