FedEx Freight (NYSE:FDXF) Stock Price Breaks Above 50 Day Moving Average - Should You Sell?

Key Points

• FedEx Freight shares rose above their 50-day moving average, reaching $128 and last trading at $126.41, signaling improved near-term momentum.
• The company exceeded quarterly earnings expectations with $1.49 in EPS versus $1.38 projected and $2.46 billion in revenue. Management also issued a stronger near-term outlook, supported by higher freight yields, pricing power and expected margin improvement.
• Risks remain: shipment volumes are soft and peak-season demand is expected to be tepid, while several analysts have reduced price targets. Even so, the stock carries a “Moderate Buy” consensus rating with an average target of $159.

FedEx Freight Hldg Co (NYSE:FDXF - Get Free Report) passed above its 50 day moving average during trading on Friday. The stock has a 50 day moving average of $118.84 and traded as high as $128.00. FedEx Freight shares last traded at $126.41, with a volume of 3,597,044 shares traded.

Key FedEx Freight News

Here are the key news stories impacting FedEx Freight this week:

• Positive Sentiment: Earnings beat expectations: FedEx Freight reported $1.49 in earnings per share versus the $1.38 analyst consensus, with revenue of $2.46 billion. Higher freight yields and fuel surcharges supported revenue, while management raised its transition-period outlook. FDXF Four-Month Transition Period Earnings Beat Estimates on Higher Yields
• Positive Sentiment: Better near-term outlook: The company forecast fourth-quarter adjusted EPS of $0.65-$0.75 and revenue of $2.30-$2.37 billion, with improving volumes, pricing, and expected margin improvement supporting the forecast. FedEx Freight forecasts quarterly earnings above estimates on improving volumes, pricing
• Positive Sentiment: Pricing power remains a key strength: Management highlighted some of its strongest renewal pricing in years, helping offset softer demand and reinforcing expectations for earnings growth during the transition period. FedEx Freight Soars on Raised Outlook
• Positive Sentiment: Analyst support: Analysts cited the quarterly beat and growth targets as reasons for the favorable reaction, helping reinforce investor confidence in the newly spun-off freight carrier. FedEx Freight shares surge as analysts back growth targets
• Neutral Sentiment: Strategic expansion: After initial consolidation following the spinoff, FedEx Freight is evaluating additional opportunities to expand its less-than-truckload network and customer base. FedEx Freight goes hunting after initial consolidation
• Negative Sentiment: Demand remains mixed: Third-quarter shipments dipped slightly, and management expects peak-season volume to be tepid, meaning pricing—not strong volume growth—is currently doing much of the earnings-supporting work. FedEx Freight Q3 shipments dip slightly following spinoff
• Negative Sentiment: Price target reduced: Jefferies lowered its FedEx Freight price target to $180 from $200, signaling more cautious valuation expectations despite the earnings beat. Jefferies Adjusts Price Target on FedEx Freight

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on FDXF. Truist Financial decreased their target price on FedEx Freight from $155.00 to $115.00 and set a "hold" rating for the company in a research report on Wednesday, October 7th. Stephens assumed coverage on shares of FedEx Freight in a report on Wednesday, July 8th. They set an "overweight" rating and a $180.00 price target on the stock. Bank of America dropped their price target on shares of FedEx Freight from $157.00 to $140.00 and set a "buy" rating on the stock in a report on Tuesday, September 29th. Raymond James Financial reiterated an "outperform" rating and issued a $165.00 price target on shares of FedEx Freight in a research note on Thursday, October 15th. Finally, Stifel Nicolaus decreased their price objective on shares of FedEx Freight from $160.00 to $129.00 and set a "hold" rating for the company in a report on Thursday, October 8th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $159.00.

FedEx Freight Price Performance

The firm has a fifty day simple moving average of $118.84.

FedEx Freight (NYSE:FDXF - Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The company reported $1.49 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.38 by $0.11. The firm had revenue of $2.46 billion for the quarter. On average, equities analysts predict that FedEx Freight Hldg Co will post 4.53 earnings per share for the current fiscal year.

Hedge Funds Weigh In On FedEx Freight

A number of institutional investors and hedge funds have recently made changes to their positions in the business. State Street Corp purchased a new position in shares of FedEx Freight during the 2nd quarter valued at about $723,747,000. Maple Rock Capital Partners Inc. purchased a new stake in FedEx Freight in the 2nd quarter worth approximately $68,207,000. Allianz Asset Management GmbH purchased a new stake in FedEx Freight in the 2nd quarter worth approximately $50,888,000. National Pension Service purchased a new stake in FedEx Freight in the 2nd quarter worth approximately $26,648,000. Finally, Diamond Hill Capital Management LLC Investment Advisor bought a new stake in FedEx Freight during the 2nd quarter worth approximately $19,666,000.

About FedEx Freight

FedEx Freight is a less-than-truckload (LTL) freight transportation company that provides pickup, consolidation, transportation and delivery services for shipments that do not require a full truck. Its customers include businesses across manufacturing, retail, wholesale, healthcare, technology and other industries.

The company offers a range of LTL solutions, including time-definite and day-definite services, standard and economy freight transportation, expedited shipping, volume and multiweight services, and specialized delivery options.

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