Stock Traders Purchase Large Volume of FedEx Call Options (NYSE:FDX)

Key Points

• Traders bought an unusually large volume of options — about 90,537 call options, roughly an 825% increase versus average daily call volume — signaling heavy bullish/options positioning in FDX.
• Despite the call buying, shares fell 4.3% to $357.48 as tariff‑refund uncertainty and pre‑earnings/Freight spin‑off de‑risking pressured sentiment.
• FedEx beat quarterly estimates with EPS $4.82 (vs. $4.02 est.) and $23.47B revenue, set FY2026 guidance of 17.80–19.00 EPS, and declared a $1.45 quarterly dividend (≈1.6% yield).

FedEx Corporation (NYSE:FDX - Get Free Report) saw some unusual options trading on Friday. Investors bought 90,537 call options on the company. This represents an increase of approximately 825% compared to the average daily volume of 9,784 call options.

FedEx Stock Down 4.3%

Shares of FedEx stock traded down $15.87 during midday trading on Friday, hitting $357.48. The company had a trading volume of 1,959,794 shares, compared to its average volume of 1,925,766. FedEx has a 52-week low of $194.29 and a 52-week high of $392.86. The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.23 and a current ratio of 1.27. The stock has a market capitalization of $84.05 billion, a P/E ratio of 19.71, a P/E/G ratio of 1.83 and a beta of 1.29. The company has a 50 day moving average of $338.60 and a 200 day moving average of $281.26.

FedEx (NYSE:FDX - Get Free Report) last released its earnings results on Thursday, December 18th. The shipping service provider reported $4.82 EPS for the quarter, topping the consensus estimate of $4.02 by $0.80. FedEx had a return on equity of 16.63% and a net margin of 4.81%.The business had revenue of $23.47 billion for the quarter, compared to the consensus estimate of $22.79 billion. During the same period in the previous year, the company posted $4.05 earnings per share. The company's revenue for the quarter was up 6.8% compared to the same quarter last year. FedEx has set its FY 2026 guidance at 17.800-19.000 EPS. On average, equities analysts predict that FedEx will post 19.14 earnings per share for the current fiscal year.

FedEx Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Monday, March 9th will be issued a dividend of $1.45 per share. The ex-dividend date is Monday, March 9th. This represents a $5.80 dividend on an annualized basis and a dividend yield of 1.6%. FedEx's dividend payout ratio is presently 31.97%.

FedEx News Summary

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: Federal-court rulings have cleared a path for large tariff refunds, which markets initially priced as a potential multi‑billion dollar boost to logistics names — driving bullish momentum and positive technical signals for FDX. FedEx Momentum Soars On Possible Billion-Dollar Windfall
• Positive Sentiment: At least one sell‑side firm raised its FDX price target (to $450), signaling continued analyst conviction that earnings and structural changes (e.g., margins after the Freight separation) could justify higher valuations. FedEx NYSE: FDX Price Target Raised to $450.00
• Neutral Sentiment: The valuation gap with rival UPS has narrowed recently as UPS shares fell while FedEx recovered; this competitive valuation shift is noteworthy for relative‑value investors but doesn’t change FedEx’s fundamentals. UPS Market Value Lead Over FedEx Shrinks
• Neutral Sentiment: Legislative proposals to simplify low‑value import processing (H.R.7224) could improve operational efficiency for express carriers long term, but passage and implementation timelines make near‑term impact uncertain. New Bill: H.R.7224 Secure Revenue Clearance Channel Act
• Negative Sentiment: Countering the “windfall” narrative, uncertainty about how and when tariff refunds will be processed (and the government’s follow‑up actions) has created dispersion in outcomes — a source of headline risk that pressured shares as investors re‑priced uncertainty. FedEx slides as tariff-refund uncertainty and pre-earnings positioning weigh on sentiment
• Negative Sentiment: FedEx has stated it would pass any tariff refunds through to customers/shippers, which limits a direct corporate cash windfall; combined with filings showing timing/operational complexity, this reduced the perceived near‑term upside. How 2 court rulings shifted the tariff refund debate
• Negative Sentiment: With FedEx approaching key corporate milestones — the June 1 Freight spin‑off and related financing steps — some investors appear to be de‑risking into the event and ahead of the next earnings report; disclosures about separation financing may have amplified selling pressure. FedEx slides as tariff-refund uncertainty and pre-earnings positioning weigh on sentiment

Hedge Funds Weigh In On FedEx

Several hedge funds and other institutional investors have recently added to or reduced their stakes in FDX. Vanguard Group Inc. raised its position in FedEx by 13.2% in the third quarter. Vanguard Group Inc. now owns 23,442,049 shares of the shipping service provider's stock worth $5,527,870,000 after acquiring an additional 2,741,723 shares during the period. Dodge & Cox raised its holdings in FedEx by 12.0% in the 3rd quarter. Dodge & Cox now owns 16,225,160 shares of the shipping service provider's stock worth $3,826,055,000 after purchasing an additional 1,742,666 shares during the period. State Street Corp lifted its position in FedEx by 4.2% during the fourth quarter. State Street Corp now owns 9,521,691 shares of the shipping service provider's stock valued at $2,763,824,000 after purchasing an additional 382,848 shares in the last quarter. Franklin Resources Inc. grew its holdings in FedEx by 6.6% during the fourth quarter. Franklin Resources Inc. now owns 5,133,231 shares of the shipping service provider's stock valued at $1,482,785,000 after purchasing an additional 318,293 shares during the period. Finally, Geode Capital Management LLC increased its position in FedEx by 0.9% in the fourth quarter. Geode Capital Management LLC now owns 4,985,778 shares of the shipping service provider's stock worth $1,443,666,000 after buying an additional 45,818 shares in the last quarter. 84.47% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on FDX shares. Wall Street Zen raised shares of FedEx from a "buy" rating to a "strong-buy" rating in a research note on Saturday, January 17th. BNP Paribas Exane set a $280.00 price objective on shares of FedEx and gave the stock a "neutral" rating in a report on Tuesday, January 13th. Stifel Nicolaus set a $412.00 target price on FedEx in a report on Friday, February 13th. Zacks Research upgraded FedEx from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, February 17th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $479.00 price target on shares of FedEx in a research note on Friday, February 13th. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, FedEx has a consensus rating of "Moderate Buy" and an average target price of $366.19.

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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