SFE Investment Counsel Makes New Investment in FedEx Corporation $FDX

Key Points

• SFE Investment Counsel bought 10,503 FedEx shares during the second quarter, valued at approximately $3.29 million. Institutional investors and hedge funds collectively own 84.47% of FedEx.
• Analyst sentiment remains broadly positive, with FedEx carrying a “Moderate Buy” consensus rating and an average price target of $350.54, although several firms recently lowered targets or downgraded the stock.
• FedEx reported quarterly earnings of $5.88 per share on $23.26 billion in revenue and pays an annualized dividend of $4.88, yielding about 1.5%; shares recently opened at $334.56.

SFE Investment Counsel purchased a new stake in FedEx Corporation (NYSE:FDX - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 10,503 shares of the shipping service provider's stock, valued at approximately $3,289,000.

Other large investors have also modified their holdings of the company. Brighton Jones LLC grew its holdings in FedEx by 12.8% during the 4th quarter. Brighton Jones LLC now owns 1,825 shares of the shipping service provider's stock valued at $514,000 after buying an additional 207 shares during the last quarter. Empowered Funds LLC lifted its position in shares of 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 acquiring an additional 4,548 shares in the last quarter. Sivia Capital Partners LLC purchased a new stake in shares of FedEx in the second quarter valued at $586,000. Quantbot Technologies LP acquired a new stake in shares of FedEx during the second quarter valued at $186,000. Finally, Jump Financial LLC acquired a new stake in shares of FedEx during the second quarter valued at $456,000. 84.47% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on FDX shares. Rothschild & Co Redburn cut their target price on shares of 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 shares of FedEx to a "strong-buy" rating in a research note on Wednesday, July 8th. Evercore set a $165.00 price target on shares of FedEx in a report on Friday, June 26th. HSBC cut their price objective on shares of FedEx from $360.00 to $289.89 and set a "hold" rating for the company in a research report on Monday, June 1st. Finally, Deutsche Bank Aktiengesellschaft downgraded shares of FedEx from a "buy" rating to a "hold" rating in a research note on Wednesday, May 27th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, FedEx presently has an average rating of "Moderate Buy" and a consensus target price of $350.54.

FedEx Stock Down 1.4%

Shares of NYSE:FDX opened at $334.56 on Friday. The stock's 50-day moving average price is $319.39 and its two-hundred day moving average price is $351.07. The company has a current ratio of 1.48, a quick ratio of 1.44 and a debt-to-equity ratio of 0.74. FedEx Corporation has a 12-month low of $177.05 and a 12-month high of $345.36. The firm has a market cap of $79.15 billion, a price-to-earnings ratio of 18.07, a PEG ratio of 1.72 and a beta of 1.30.

FedEx (NYSE:FDX - Get Free Report) last posted its quarterly earnings data on Tuesday, July 21st. The shipping service provider reported $5.88 EPS for the quarter. The company had revenue of $23.26 billion during the quarter. FedEx had a net margin of 4.68% and a return on equity of 16.49%. On average, research analysts forecast that FedEx Corporation will post 17.6 EPS for the current year.

FedEx Cuts Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, July 7th. Investors of record on Monday, June 22nd were issued a $1.22 dividend. This represents a $4.88 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date was Monday, June 22nd. FedEx's payout ratio is presently 26.36%.

FedEx News Summary

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: Automation strategy supports efficiency: FedEx is sharpening its focus on automation to improve productivity and reduce costs, which could support margins over time. FedEx Automation Strategy Sharpens Focus on Efficiency
• Positive Sentiment: Industry shipping constraints may improve pricing: Capacity limitations, delays and higher prices reported by major ocean carriers could benefit parcel and freight operators such as FedEx if customers shift transportation modes or accept higher shipping rates. Walmart, Tesla, FedEx, and More Winners and Losers From Shipping's Rough Seas
• Neutral Sentiment: Call-option activity signals bullish speculation: Investors purchased a high volume of FedEx call options, indicating increased expectations for a rebound, although options activity does not guarantee fundamental improvement. Investors Purchase High Volume of Call Options on FedEx
• Neutral Sentiment: FedEx Freight’s upbeat debut is separate from FDX: Newly independent FedEx Freight Holding Company NASDAQ: FDXF attracted favorable analyst coverage, with reported targets above its trading level and fiscal fourth-quarter revenue of $2.4 billion. The development may highlight value unlocked by FedEx’s freight separation, but FDXF now trades as a separate company.
• Negative Sentiment: Tariff refunds will not provide a lasting earnings boost: FedEx reportedly plans to return approximately $800 million in tariff refunds to customers after courts invalidated the tariffs. Passing the funds through limits the benefit to FedEx’s profits and could create administrative costs or temporary cash-flow pressure. Nike, FedEx Reap Billions From Tariff Refunds
• Negative Sentiment: Southern California closures and layoffs underscore cost pressure: FedEx is among employers announcing more than 500 job cuts in the region, including facility closures in Palm Springs and Victorville. While potentially supportive of restructuring savings, the actions point to softer demand and ongoing network rationalization. FedEx and Others Announce Layoffs in Southern California

Insider Buying and Selling

In related news, Director Paul S. Walsh sold 5,042 shares of the company's stock in a transaction that occurred 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 completion of the transaction, the director 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 sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company 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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