According to Zacks, “FedEx is benefiting from strong e-commerce growth. In this regard, the company launched the FedEx Extra Hours last December to boost its e-commerce delivery chain. Its cost-reduction efforts to drive the bottom line are also encouraging. One such cost-containment initiative, the voluntary employee buyout program, is estimated to generate approximately $225-$275 million in savings during fiscal 2020. Additionally, we are impressed by the company's efforts to add shareholder value via dividend payments and share buybacks. However, weakness pertaining to global trade has been hampering the company's growth. As a result, FedEx trimmed its earnings per share outlook for fiscal 2019. Moreover with the company investing heavily in facility upgrades at its key divisions, capital expenses are on an upswing. In fact, shares of FedEx have underperformed its industry in a year's time.”
A number of other brokerages have also issued reports on FDX. UBS Group lowered shares of FedEx from a neutral rating to a sell rating and dropped their target price for the stock from $171.00 to $161.00 in a research report on Friday, April 26th. Credit Suisse Group reaffirmed a buy rating and set a $241.00 target price on shares of FedEx in a research report on Monday, April 1st. KeyCorp dropped their target price on shares of FedEx from $240.00 to $215.00 and set an overweight rating on the stock in a research report on Wednesday, March 20th. Barclays dropped their target price on shares of FedEx from $235.00 to $215.00 and set an overweight rating on the stock in a research report on Wednesday, March 20th. Finally, BMO Capital Markets lowered their price target on shares of FedEx to $215.00 and set an outperform rating on the stock in a report on Wednesday, March 20th. Two analysts have rated the stock with a sell rating, seven have given a hold rating and thirteen have assigned a buy rating to the stock. FedEx has a consensus rating of Buy and an average price target of $212.33.
FedEx (NYSE:FDX) last announced its earnings results on Tuesday, March 19th. The shipping service provider reported $3.03 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $3.10 by ($0.07). FedEx had a return on equity of 22.67% and a net margin of 5.25%. The company had revenue of $17.01 billion for the quarter, compared to the consensus estimate of $17.70 billion. During the same period last year, the firm posted $3.72 EPS. The company’s revenue was up 2.9% compared to the same quarter last year. Analysts predict that FedEx will post 15.44 EPS for the current year.
In other FedEx news, Director Susan C. Schwab sold 3,000 shares of the company’s stock in a transaction dated Wednesday, March 27th. The shares were sold at an average price of $175.11, for a total transaction of $525,330.00. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, EVP Alan B. Graf, Jr. sold 27,000 shares of the company’s stock in a transaction dated Thursday, March 21st. The shares were sold at an average price of $173.30, for a total transaction of $4,679,100.00. Following the transaction, the executive vice president now owns 200,320 shares in the company, valued at $34,715,456. The disclosure for this sale can be found here. Insiders sold a total of 185,650 shares of company stock worth $34,751,470 in the last three months. Insiders own 8.50% of the company’s stock.
A number of institutional investors have recently added to or reduced their stakes in FDX. Castle Rock Wealth Management LLC bought a new stake in shares of FedEx in the 1st quarter valued at about $13,062,000. Cordasco Financial Network increased its stake in shares of FedEx by 181.8% in the 1st quarter. Cordasco Financial Network now owns 155 shares of the shipping service provider’s stock valued at $28,000 after acquiring an additional 100 shares during the last quarter. Covenant Multifamily Offices LLC bought a new stake in shares of FedEx in the 1st quarter valued at about $29,000. Berman Capital Advisors LLC bought a new stake in shares of FedEx in the 4th quarter valued at about $25,000. Finally, Evolution Wealth Advisors LLC bought a new stake in shares of FedEx in the 1st quarter valued at about $31,000. Institutional investors own 70.48% of the company’s stock.
FedEx Corporation provides transportation, e-commerce, and business services worldwide. The company's FedEx Express segment offers shipping services for delivery of packages and freight. Its FedEx Ground segment provides business and residential money-back guaranteed ground package delivery services; and consolidates and delivers low-weight and less time-sensitive business-to-consumer packages.
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