Investors Buy Large Volume of Put Options on FedEx Freight (NYSE:FDXF)

Key Points

• Put-option activity surged: Investors purchased 4,495 put options on FedEx Freight, roughly 938% above the average volume of 433 contracts, signaling unusually high bearish or hedging interest.
• Institutional investors established new positions: Several firms bought stakes during the second quarter, led by Diamond Hill Capital Management’s approximately $19.7 million investment.
• Analyst sentiment remains generally positive: FDXF has a “Moderate Buy” consensus rating with an average price target of $177.90, while shares recently traded at $150.68 after reporting quarterly EPS of $0.00.

FedEx Freight Hldg Co (NYSE:FDXF - Get Free Report) saw unusually large options trading on Friday. Investors purchased 4,495 put options on the company. This represents an increase of approximately 938% compared to the average volume of 433 put options.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in FDXF. Sumitomo Life Insurance Co. acquired a new stake in FedEx Freight during the second quarter worth approximately $194,000. Commerzbank Aktiengesellschaft FI acquired a new position in FedEx Freight in the second quarter valued at approximately $984,000. Kiltearn Partners LLP acquired a new position in FedEx Freight in the second quarter valued at approximately $1,727,000. Finally, Diamond Hill Capital Management LLC Investment Advisor bought a new position in shares of FedEx Freight during the 2nd quarter worth approximately $19,666,000.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on FDXF shares. Truist Financial assumed coverage on shares of FedEx Freight in a report on Tuesday, June 2nd. They issued a "hold" rating on the stock. Stifel Nicolaus assumed coverage on shares of FedEx Freight in a research note on Thursday, June 4th. They issued a "hold" rating and a $160.00 price target on the stock. The Goldman Sachs Group began coverage on shares of FedEx Freight in a report on Wednesday, July 1st. They issued a "buy" rating and a $186.00 price objective for the company. BMO Capital Markets raised their target price on shares of FedEx Freight from $140.00 to $150.00 and gave the stock a "market perform" rating in a report on Friday, June 26th. Finally, Evercore began coverage on FedEx Freight in a research note on Thursday, June 4th. They issued an "outperform" rating and a $168.00 price target for the company. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $177.90.

FedEx Freight Stock Performance

Shares of FDXF traded down $1.31 during trading hours on Friday, reaching $150.68. The stock had a trading volume of 277,341 shares, compared to its average volume of 1,724,290. FedEx Freight has a 12 month low of $135.64 and a 12 month high of $194.27. The stock has a 50-day moving average price of $154.12.

FedEx Freight (NYSE:FDXF - Get Free Report) last released its quarterly earnings results on Thursday, June 25th. The company reported $0.00 earnings per share for the quarter. As a group, equities analysts forecast that FedEx Freight will post 5.47 EPS for the current year.

About FedEx Freight

FedEx Freight is the less-than-truckload (LTL) freight transportation arm of FedEx, providing time-definite, regional, and interregional shipping services for commercial customers in North America. The company specializes in moving palletized freight that is too large for parcel shipment but does not require a full truckload, and it offers services designed to help businesses manage supply chain and distribution needs.

As part of the FedEx family of companies, FedEx Freight operates an extensive network of service centers and transportation routes across the United States, Canada, and Mexico.

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