Sterling Capital Management LLC Has $11.28 Million Stake in FedEx Corporation $FDX

Key Points

• Sterling Capital Management LLC boosted its FedEx stake by 256.1% in the first quarter, ending with 31,681 shares valued at about $11.28 million.
• FedEx recently reported better-than-expected quarterly results, with EPS of $6.31 and revenue of $25.01 billion, both ahead of analyst estimates.
• Despite the earnings beat, FedEx shares fell 3.3%, while analysts remain mixed but generally constructive, with an average rating of Moderate Buy and an average price target of $349.60.

Sterling Capital Management LLC grew its holdings in shares of FedEx Corporation (NYSE:FDX - Free Report) by 256.1% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 31,681 shares of the shipping service provider's stock after acquiring an additional 22,784 shares during the period. Sterling Capital Management LLC's holdings in FedEx were worth $11,284,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Norges Bank bought a new stake in FedEx in the fourth quarter worth approximately $859,085,000. Boston Partners bought a new position in shares of FedEx during the 3rd quarter worth approximately $468,195,000. Dodge & Cox grew its position in shares of FedEx by 12.0% during the 3rd quarter. Dodge & Cox now owns 16,225,160 shares of the shipping service provider's stock worth $3,826,055,000 after buying an additional 1,742,666 shares during the period. AQR Capital Management LLC increased its stake in shares of FedEx by 169.2% in the 3rd quarter. AQR Capital Management LLC now owns 2,733,905 shares of the shipping service provider's stock valued at $638,203,000 after acquiring an additional 1,718,278 shares in the last quarter. Finally, Waddell & Associates LLC increased its stake in shares of FedEx by 164.0% in the 4th quarter. Waddell & Associates LLC now owns 1,188,140 shares of the shipping service provider's stock valued at $343,206,000 after acquiring an additional 738,122 shares in the last quarter. 84.47% of the stock is owned by institutional investors and hedge funds.

FedEx Stock Down 3.3%

Shares of NYSE FDX opened at $318.55 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. The company has a 50-day moving average price of $363.74 and a 200-day moving average price of $346.38. The stock has a market capitalization of $76.01 billion, a P/E ratio of 17.21, a P/E/G ratio of 1.40 and a beta of 1.28. FedEx Corporation has a 1 year low of $172.88 and a 1 year high of $345.36.

FedEx (NYSE:FDX - Get Free Report) last posted its earnings results on Tuesday, June 23rd. The shipping service provider reported $6.31 earnings per share for the quarter, topping analysts' consensus estimates of $5.91 by $0.40. FedEx had a net margin of 4.68% and a return on equity of 16.49%. The company had revenue of $25.01 billion for the quarter, compared to analyst estimates of $24.04 billion. During the same quarter in the prior year, the business posted $6.07 EPS. The firm's revenue was up 12.5% compared to the same quarter last year. FedEx has set its FY 2027 guidance at 16.900-18.100 EPS. On average, equities research analysts forecast that FedEx Corporation will post 21.34 EPS for the current fiscal year.

FedEx Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, July 7th. Stockholders of record on Monday, June 22nd 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, June 22nd. FedEx's dividend payout ratio (DPR) is currently 26.36%.

Analyst Ratings Changes

Several research analysts recently issued reports on the stock. Sanford C. Bernstein set a $397.00 target price on shares of FedEx in a research note on Wednesday. Raymond James Financial dropped their price objective on shares of FedEx from $415.00 to $330.00 and set an "outperform" rating on the stock in a report on Wednesday. BMO Capital Markets restated a "market perform" rating on shares of FedEx in a research note on Wednesday. The Goldman Sachs Group decreased their target price on FedEx from $405.00 to $375.00 and set a "buy" rating for the company in a research report on Monday, June 1st. Finally, Deutsche Bank Aktiengesellschaft downgraded FedEx from a "buy" rating to a "hold" rating in a research note on Wednesday, May 27th. Eighteen investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, FedEx presently has an average rating of "Moderate Buy" and an average target price of $349.60.

Insider Buying and Selling

In other FedEx news, EVP Tracy B. Brightman sold 16,959 shares of FedEx stock in a transaction on Wednesday, April 15th. The shares were sold at an average price of $363.47, for a total transaction of $6,164,087.73. Following the transaction, the executive vice president directly owned 11,052 shares of the company's stock, valued at $4,017,070.44. The trade was a 60.54% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Kawal Preet sold 4,900 shares of the stock in a transaction dated Tuesday, April 14th. The shares were sold at an average price of $367.89, for a total transaction of $1,802,661.00. Following the completion of the sale, the executive vice president owned 10,953 shares of the company's stock, valued at approximately $4,029,499.17. This represents a 30.91% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 48,104 shares of company stock worth $17,599,006 in the last ninety days. Corporate insiders own 0.53% of the company's stock.

FedEx News Summary

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: Bank of America said FedEx Freight’s pricing power is improving and reiterated a Buy rating while raising its price target to $187, signaling confidence that the LTL business can support better earnings growth. Article Title
• Positive Sentiment: FedEx Freight’s first post-spinoff earnings report showed revenue growth and beat revenue expectations, with analysts noting solid underlying growth trends and the potential for margin improvement later in the year. Article Title
• Positive Sentiment: FedEx also announced $4.15 billion in cash tender offers for outstanding notes, which could help optimize its capital structure and lower future interest expense. Article Title
• Neutral Sentiment: Some analysts highlighted that FedEx’s broader business still has strong underlying momentum, but recent stock weakness may reflect “near-term noise” rather than a change in the long-term thesis. Article Title
• Neutral Sentiment: FedEx Freight’s first standalone quarter also included large spinoff-related costs, which pressured operating income and created uncertainty around near-term profitability, even though management expects growth ahead. Article Title
• Negative Sentiment: FedEx shares fell after the Freight unit reported mixed results, including a steep decline in operating income and margin pressure from separation costs, weaker shipment volumes, and higher labor expenses. Article Title
• Negative Sentiment: Another note from analysts pointed to a margin drop and reduced price targets, reinforcing concerns that the market is still focused on near-term earnings pressure rather than the longer-term turnaround. Article Title

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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