HSBC Has Lowered Expectations for FedEx (NYSE:FDX) Stock Price

Key Points

• HSBC cut its price target on FedEx from $360.00 to $289.89 and kept a hold rating, implying about a 13% downside from the current share price.
• FedEx shares fell sharply in midday trading, dropping to $333.16, well below its 50-day average of $376.41 and near its 200-day average of $338.62.
• Despite HSBC’s cautious view, analyst sentiment remains broadly positive: the stock still has a consensus rating of “Moderate Buy” with a consensus price target of $395.53, and FedEx recently beat quarterly earnings and revenue estimates.

FedEx (NYSE:FDX - Get Free Report) had its target price dropped by HSBC from $360.00 to $289.89 in a research report issued to clients and investors on Monday,MarketScreener reports. The brokerage presently has a "hold" rating on the shipping service provider's stock. HSBC's price objective suggests a potential downside of 12.99% from the stock's current price.

Several other equities analysts have also weighed in on FDX. Weiss Ratings raised FedEx from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, May 15th. Seaport Research Partners began coverage on FedEx in a research report on Wednesday. They set a "buy" rating on the stock. Wells Fargo & Company upgraded FedEx from an "overweight" rating to an "overweight" rating in a research note on Wednesday. Argus boosted their price objective on FedEx from $350.00 to $400.00 and gave the company a "buy" rating in a research note on Monday, April 6th. Finally, Citigroup began coverage on shares of FedEx in a report on Thursday, May 21st. They set a "buy" rating and a $443.00 price objective on the stock. Eighteen analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, FedEx currently has a consensus rating of "Moderate Buy" and a consensus price target of $395.53.

FedEx Stock Performance

FDX stock traded down $78.59 during mid-day trading on Monday, hitting $333.16. The company had a trading volume of 189,639 shares, compared to its average volume of 1,818,576. The firm has a market cap of $79.50 billion, a PE ratio of 17.73, a price-to-earnings-growth ratio of 1.57 and a beta of 1.28. The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.44 and a current ratio of 1.47. FedEx has a 12 month low of $214.82 and a 12 month high of $413.87. The stock's fifty day moving average price is $376.41 and its two-hundred day moving average price is $338.62.

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

Insider Buying and Selling

In related news, EVP Tracy B. Brightman sold 16,959 shares of the business's stock in a transaction 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. The trade was a 60.54% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Kawal Preet sold 4,900 shares of the firm's stock in a transaction dated 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 completion of the transaction, 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. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 48,104 shares of company stock valued at $17,599,006. 0.53% of the stock is owned by company insiders.

Hedge Funds Weigh In On FedEx

A number of large investors have recently modified their holdings of FDX. Norges Bank bought a new stake in FedEx during the 4th quarter worth approximately $859,085,000. Vanguard Group Inc. grew its position in shares of FedEx by 13.2% during the 3rd quarter. Vanguard Group Inc. now owns 23,442,049 shares of the shipping service provider's stock valued at $5,527,870,000 after purchasing an additional 2,741,723 shares in the last quarter. Boston Partners purchased a new stake in shares of FedEx in the third quarter worth $468,195,000. Dodge & Cox boosted its stake in FedEx by 12.0% during the third quarter. Dodge & Cox now owns 16,225,160 shares of the shipping service provider's stock valued at $3,826,055,000 after buying an additional 1,742,666 shares during the period. Finally, AQR Capital Management LLC grew its position in FedEx by 169.2% during the third quarter. AQR Capital Management LLC now owns 2,733,905 shares of the shipping service provider's stock worth $638,203,000 after buying an additional 1,718,278 shares in the last quarter. 84.47% of the stock is currently owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.