Sage Investment Advisers LLC Makes New $1.26 Million Investment in FedEx Corporation $FDX

Key Points

• Sage Investment Advisers LLC disclosed a new stake in FedEx during the fourth quarter, buying 4,360 shares worth about $1.26 million.
• FedEx is getting a boost from its upcoming FedEx Freight spinoff, with Wall Street commentary suggesting the separation could unlock value and sharpen focus for the remaining business.
• Analysts remain broadly positive on the stock: JPMorgan upgraded FedEx to overweight, Citigroup started coverage with a buy, and the consensus rating is Moderate Buy with a target price of about $400.69.

Sage Investment Advisers LLC purchased a new stake in FedEx Corporation (NYSE:FDX - Free Report) during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund purchased 4,360 shares of the shipping service provider's stock, valued at approximately $1,259,000.

A number of other institutional investors have also recently made changes to their positions in the stock. SCS Capital Management LLC grew its position in shares of FedEx by 12.9% in the 4th quarter. SCS Capital Management LLC now owns 47,652 shares of the shipping service provider's stock valued at $13,817,000 after buying an additional 5,454 shares during the last quarter. Thompson Siegel & Walmsley LLC grew its position in shares of FedEx by 24.5% in the 4th quarter. Thompson Siegel & Walmsley LLC now owns 45,971 shares of the shipping service provider's stock valued at $13,279,000 after buying an additional 9,035 shares during the last quarter. Rothschild Wealth LLC bought a new stake in shares of FedEx in the 4th quarter valued at about $559,000. Waterloo Capital L.P. grew its position in shares of FedEx by 139.4% in the 4th quarter. Waterloo Capital L.P. now owns 2,262 shares of the shipping service provider's stock valued at $653,000 after buying an additional 1,317 shares during the last quarter. Finally, Nomura Asset Management Co. Ltd. grew its position in shares of FedEx by 0.3% in the 4th quarter. Nomura Asset Management Co. Ltd. now owns 78,254 shares of the shipping service provider's stock valued at $22,604,000 after buying an additional 219 shares during the last quarter. Institutional investors own 84.47% of the company's stock.

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.

Wall Street Analysts Forecast Growth

FDX has been the topic of a number of analyst reports. Citigroup initiated coverage on FedEx in a research report on Thursday, May 21st. They issued a "buy" rating and a $443.00 price target on the stock. Zacks Research lowered FedEx from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, March 18th. Jefferies Financial Group upped their price target on FedEx from $425.00 to $450.00 and gave the company a "buy" rating in a research report on Tuesday, March 3rd. JPMorgan Chase & Co. upgraded FedEx from a "neutral" rating to an "overweight" rating and upped their target price for the company from $432.00 to $460.00 in a research report on Wednesday, May 27th. Finally, Rothschild & Co Redburn upped their target price on FedEx from $317.00 to $371.00 and gave the company a "neutral" rating in a research report on Tuesday, February 24th. Eighteen analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $400.69.

FedEx Stock Up 0.1%

Shares of FedEx stock opened at $412.11 on Monday. FedEx Corporation has a one year low of $214.82 and a one year high of $413.87. 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's 50-day moving average is $376.41 and its 200 day moving average is $338.62. The firm has a market cap of $98.33 billion, a price-to-earnings ratio of 21.93, a PEG ratio of 1.57 and a beta of 1.28.

FedEx (NYSE:FDX - Get Free Report) last announced its earnings results on Thursday, March 19th. The shipping service provider reported $5.25 EPS for the quarter, beating the consensus estimate of $4.12 by $1.13. FedEx had a return on equity of 16.76% and a net margin of 4.88%.The company had revenue of $24 billion for the quarter, compared to analyst estimates of $23.44 billion. During the same quarter in the prior year, the company earned $4.51 EPS. The firm's revenue for the quarter was up 8.3% compared to the same quarter last year. Equities research analysts anticipate that FedEx Corporation will post 19.63 EPS for the current year.

Insider Transactions at FedEx

In other FedEx news, EVP Kawal Preet sold 4,900 shares of the stock in a transaction that occurred on Tuesday, April 14th. The stock was sold at an average price of $367.89, for a total value of $1,802,661.00. Following the transaction, the executive vice president owned 10,953 shares in the company, valued at approximately $4,029,499.17. This represents a 30.91% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Susan C. Schwab sold 5,795 shares of the 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 completion of the transaction, the director owned 10,038 shares in the company, valued at approximately $3,704,022. The trade was a 36.60% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 48,104 shares of company stock worth $17,599,006 in the last three months. 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.

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