FedEx (NYSE:FDX) Shares Gap Down After Analyst Downgrade

FedEx Corporation (NYSE:FDX)’s share price gapped down before the market opened on Monday after HSBC lowered their price target on the stock from $360.00 to $289.89. The stock had previously closed at $411.75, but opened at $325.01. HSBC currently has a hold rating on the stock. FedEx shares last traded at $333.1150, with a volume of 189,639 shares traded.

Other analysts also recently issued research reports about the stock. BMO Capital Markets cut their price target on shares of FedEx from $410.00 to $340.00 and set a “market perform” rating for the company in a report on Monday. Sanford C. Bernstein upped their price objective on FedEx from $457.00 to $470.00 and gave the company an “outperform” rating in a report on Thursday, April 9th. The Goldman Sachs Group lowered their price objective on FedEx from $405.00 to $375.00 and set a “buy” rating for the company in a research report on Monday. Wolfe Research reduced their target price on FedEx from $427.00 to $423.00 and set an “outperform” rating on the stock in a research report on Tuesday, April 7th. Finally, Morgan Stanley upped their price target on FedEx from $220.00 to $230.00 and gave the company an “underweight” rating in a research note on Friday, March 20th. Eighteen investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, FedEx currently has an average rating of “Moderate Buy” and a consensus price target of $395.53.

Insider Buying and Selling at FedEx

In other FedEx news, Director Susan C. Schwab sold 5,795 shares of the stock in a transaction that occurred on Wednesday, April 15th. The shares were sold at an average price of $369.00, for a total transaction of $2,138,355.00. Following the sale, the director directly owned 10,038 shares in the company, valued at $3,704,022. This represents a 36.60% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Gina F. Adams sold 20,450 shares of the firm’s stock in a transaction that occurred on Tuesday, April 14th. The shares were sold at an average price of $366.45, for a total transaction 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 represents a 51.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 48,104 shares of company stock valued at $17,599,006 in the last 90 days. Corporate insiders own 0.53% of the company’s stock.

FedEx News Roundup

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: FedEx completed the spin-off of FedEx Freight, turning it into an independent, publicly traded company. The move may unlock value and sharpen FedEx’s focus on its core parcel and express operations. FedEx Completes Spin-Off of FedEx Freight
• Positive Sentiment: FedEx Freight began trading separately on the NYSE under ticker FDXF, and the new standalone listing may attract investor attention to the freight business while simplifying FedEx’s overall structure. FedEx Freight Completes Spinoff, Joins S&P 500, Dow Jones Transport Indexes
• Positive Sentiment: Goldman Sachs lowered its price target to $375 from $405 but kept a buy rating, implying meaningful upside from current levels. Goldman Sachs Adjusts Price Target on FedEx to 375 from 405 Maintains Buy Rating
• Neutral Sentiment: FedEx also announced a trucking hub expansion in the Netherlands, supporting its air cargo strategy, but the near-term stock impact is likely limited. FedEx trucking hub expansion in Netherlands aids new air cargo strategy
• Neutral Sentiment: BMO Capital Markets cut its target to $340 from $410 and kept a market perform rating, signaling a more cautious but not outright bearish view. BMO Capital Adjusts FedEx Price Target to 340 from 410 Maintains Market Perform Rating
• Negative Sentiment: HSBC cut its price target sharply to $289.89 from $360 and kept a hold rating, reflecting a more bearish near-term valuation outlook for FDX. HSBC Adjusts Price Target on FedEx to 289.89 from 360 Maintains Hold Rating

Institutional Investors Weigh In On FedEx

A number of hedge funds have recently bought and sold shares of the stock. Norges Bank acquired a new stake in FedEx in the fourth quarter valued at approximately $859,085,000. Vanguard Group Inc. increased its position in shares of FedEx by 13.2% in 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 during the last quarter. Boston Partners purchased a new stake in shares of FedEx in the 3rd quarter valued at approximately $468,195,000. Dodge & Cox raised its holdings in shares of FedEx by 12.0% in the 3rd quarter. Dodge & Cox now owns 16,225,160 shares of the shipping service provider’s stock valued at $3,826,055,000 after purchasing an additional 1,742,666 shares in the last quarter. Finally, AQR Capital Management LLC raised its holdings in shares of FedEx by 169.2% in the 3rd quarter. AQR Capital Management LLC now owns 2,733,905 shares of the shipping service provider’s stock valued at $638,203,000 after purchasing an additional 1,718,278 shares in the last quarter. Institutional investors and hedge funds own 84.47% of the company’s stock.

FedEx Trading Down 18.9%

The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.44 and a current ratio of 1.47. The company’s 50-day moving average price is $376.41 and its 200-day moving average price is $338.62. The firm has a market capitalization of $79.71 billion, a PE ratio of 17.78, a PEG ratio of 1.57 and a beta of 1.28.

FedEx (NYSE:FDX) last posted its earnings results on Thursday, March 19th. The shipping service provider reported $5.25 earnings per share for the quarter, topping the consensus estimate of $4.12 by $1.13. The firm had revenue of $24 billion during the quarter, compared to analysts’ expectations of $23.44 billion. FedEx had a return on equity of 16.76% and a net margin of 4.88%.The firm’s revenue was up 8.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $4.51 earnings per share. On average, sell-side analysts expect that FedEx Corporation will post 19.63 earnings per share for the current year.

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.