Waddell & Associates LLC Grows Stake in FedEx Corporation $FDX

Key Points

• Waddell & Associates LLC sharply increased its FedEx stake by 164% in the fourth quarter, making FedEx its largest holding at 23.2% of the portfolio. The fund now owns about 0.51% of FedEx, valued at roughly $343.2 million.
• FedEx insiders have been selling shares, including two EVP transactions in April totaling tens of thousands of shares. In the last three months, insiders sold 48,104 shares worth about $17.6 million.
• FedEx recently beat earnings expectations and continues to draw analyst support, reporting $5.25 EPS on $24 billion in revenue for the quarter. The stock carries a “Moderate Buy” consensus with an average price target of $372.41, while the company also pays a quarterly dividend of $1.22 per share.

Waddell & Associates LLC increased its holdings in shares of FedEx Corporation (NYSE:FDX - Free Report) by 164.0% in the fourth quarter, according to its most recent filing with the SEC. The fund owned 1,188,140 shares of the shipping service provider's stock after acquiring an additional 738,122 shares during the period. FedEx comprises 23.2% of Waddell & Associates LLC's portfolio, making the stock its biggest position. Waddell & Associates LLC owned about 0.51% of FedEx worth $343,206,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also made changes to their positions in the company. Wealth Watch Advisors INC bought a new stake in FedEx during the 3rd quarter valued at about $28,000. Ameriflex Group Inc. increased its position in shares of FedEx by 103.3% during the third quarter. Ameriflex Group Inc. now owns 124 shares of the shipping service provider's stock worth $29,000 after acquiring an additional 63 shares during the period. Ulland Investment Advisors LLC purchased a new position in shares of FedEx during the fourth quarter worth approximately $29,000. Tucker Asset Management LLC purchased a new stake in shares of FedEx in the fourth quarter valued at approximately $29,000. Finally, ORG Partners LLC boosted its holdings in shares of FedEx by 50.0% in the fourth quarter. ORG Partners LLC now owns 105 shares of the shipping service provider's stock valued at $30,000 after purchasing an additional 35 shares during the period. 84.47% of the stock is currently owned by institutional investors.

Insider Activity at FedEx

In related news, EVP Gina F. Adams sold 20,450 shares of the stock in a transaction that occurred on Tuesday, April 14th. The shares were sold at an average price of $366.45, for a total value of $7,493,902.50. Following the completion of the transaction, the executive vice president directly owned 19,403 shares of the company's stock, valued at $7,110,229.35. This trade represents a 51.31% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Tracy B. Brightman sold 16,959 shares of the business's stock in a transaction that occurred on Wednesday, April 15th. The stock was sold at an average price of $363.47, for a total transaction of $6,164,087.73. Following the sale, the executive vice president directly owned 11,052 shares in the company, valued at approximately $4,017,070.44. This represents a 60.54% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 48,104 shares of company stock worth $17,599,006. 0.53% of the stock is owned by insiders.

FedEx Trading Down 0.3%

NYSE FDX opened at $329.96 on Tuesday. FedEx Corporation has a 52 week low of $172.88 and a 52 week high of $341.14. The company has a 50 day moving average price of $373.31 and a 200 day moving average price of $341.31. The company has a quick ratio of 1.44, a current ratio of 1.47 and a debt-to-equity ratio of 0.77. The firm has a market cap of $78.73 billion, a PE ratio of 17.56, a price-to-earnings-growth ratio of 1.51 and a beta of 1.28.

FedEx (NYSE:FDX - Get Free Report) last released its quarterly earnings results on Thursday, March 19th. The shipping service provider reported $5.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.12 by $1.13. FedEx had a net margin of 4.88% and a return on equity of 16.76%. The business had revenue of $24 billion for the quarter, compared to analyst estimates of $23.44 billion. During the same period in the previous year, the company earned $4.51 earnings per share. The business's revenue for the quarter was up 8.3% on a year-over-year basis. As a group, sell-side analysts forecast that FedEx Corporation will post 19.72 EPS for the current fiscal year.

FedEx Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 7th. Stockholders of record on Monday, June 22nd will be issued a dividend of $1.22 per share. The ex-dividend date is Monday, June 22nd. This represents a $4.88 annualized dividend and a dividend yield of 1.5%. FedEx's dividend payout ratio is 30.87%.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on FDX. Weiss Ratings lowered FedEx from a "buy (b)" rating to a "buy (b-)" rating in a research report on Wednesday, June 3rd. Stifel Nicolaus lifted their price objective on FedEx from $425.00 to $442.00 in a report on Friday, April 10th. Susquehanna upped their price objective on shares of FedEx from $410.00 to $455.00 and gave the stock a "positive" rating in a research note on Friday, March 20th. Stephens reissued an "overweight" rating and set a $435.00 target price on shares of FedEx in a research report on Tuesday, April 14th. Finally, Barclays upgraded shares of FedEx from an "overweight" rating to an "overweight" rating in a report on Wednesday, May 27th. Eighteen analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $372.41.

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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