FedEx (FDX) Lowered to “Hold” at Zacks Investment Research
Zacks Investment Research cut shares of FedEx (NYSE:FDX) from a buy rating to a hold rating in a report published on Wednesday.
According to Zacks, “FedEx is being aided by strong e-commerce growth as well as a bouyant U.S. economy. In a bid to meet the surge in demand during the holiday season, the company announced the enhancement of its U.S. delivery by expanding its ground operations to six days per week throughout the year. The amended tax law is another positive for the company, on account of which the company has raised its earnings per share guidance for fiscal 2019. Efforts to reward shareholders through dividends and buybacks are also encouraging. However, similar to the past few quarters, the company's earnings in second-quarter fiscal 2019 might be hurt by high costs. Detailed results should be out on December 18. High debt levels and trade-war related fears are also hurting FedEx. In fact, shares of FedEx have shed 24% so far this year. “
A number of other equities research analysts also recently issued reports on FDX. Credit Suisse Group reduced their price target on FedEx from $307.00 to $263.00 and set an outperform rating on the stock in a research report on Wednesday. Bank of America downgraded FedEx from a buy rating to a neutral rating in a research report on Monday, December 10th. Morgan Stanley reduced their price target on FedEx from $240.00 to $230.00 and set an equal weight rating on the stock in a research report on Tuesday, December 4th. Robert W. Baird increased their price target on FedEx from $265.00 to $270.00 and gave the stock an outperform rating in a research report on Tuesday, September 18th. Finally, Citigroup reduced their price target on FedEx from $304.00 to $275.00 and set a buy rating on the stock in a research report on Friday, November 2nd. Four investment analysts have rated the stock with a hold rating and seventeen have assigned a buy rating to the stock. FedEx currently has an average rating of Buy and a consensus price target of $280.85.
FedEx (NYSE:FDX) last issued its quarterly earnings results on Monday, September 17th. The shipping service provider reported $3.46 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $3.78 by ($0.32). The company had revenue of $17.05 billion for the quarter, compared to analyst estimates of $16.88 billion. FedEx had a return on equity of 23.71% and a net margin of 7.16%. The company’s quarterly revenue was up 11.5% compared to the same quarter last year. During the same period in the prior year, the company earned $2.65 EPS. On average, analysts anticipate that FedEx will post 17.32 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Wednesday, January 2nd. Shareholders of record on Monday, December 10th will be paid a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a yield of 1.41%. The ex-dividend date of this dividend is Friday, December 7th. FedEx’s payout ratio is presently 16.98%.
In other news, Director Susan Patricia Griffith purchased 1,000 shares of the company’s stock in a transaction dated Wednesday, October 17th. The stock was bought at an average cost of $225.16 per share, for a total transaction of $225,160.00. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director John A. Edwardson sold 1,160 shares of the stock in a transaction on Wednesday, September 19th. The shares were sold at an average price of $242.35, for a total value of $281,126.00. Following the completion of the transaction, the director now owns 32,800 shares of the company’s stock, valued at $7,949,080. The disclosure for this sale can be found here. 8.50% of the stock is owned by corporate insiders.
Several institutional investors and hedge funds have recently made changes to their positions in FDX. Acadian Asset Management LLC bought a new position in shares of FedEx in the 2nd quarter valued at $171,000. Alps Advisors Inc. lifted its stake in shares of FedEx by 30.3% in the 2nd quarter. Alps Advisors Inc. now owns 4,042 shares of the shipping service provider’s stock valued at $918,000 after acquiring an additional 941 shares during the last quarter. Virginia Retirement Systems ET AL bought a new position in shares of FedEx in the 2nd quarter valued at $1,476,000. Engineers Gate Manager LP bought a new position in shares of FedEx in the 2nd quarter valued at $398,000. Finally, Gables Capital Management Inc. lifted its stake in shares of FedEx by 52.7% in the 2nd quarter. Gables Capital Management Inc. now owns 2,520 shares of the shipping service provider’s stock valued at $604,000 after acquiring an additional 870 shares during the last quarter. Institutional investors own 72.10% of the company’s stock.
FedEx Company Profile
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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