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 research analysts also recently issued reports on the company. Berenberg Bank downgraded FedEx from a “buy” rating to a “hold” rating and decreased their price objective for the stock from $245.00 to $200.00 in a report on Monday, April 1st. UBS Group downgraded FedEx from a “neutral” rating to a “sell” rating and decreased their price objective for the stock from $171.00 to $161.00 in a report on Friday, April 26th. JPMorgan Chase & Co. downgraded FedEx from an “overweight” rating to a “neutral” rating and decreased their price objective for the stock from $227.00 to $202.00 in a report on Wednesday, March 20th. Credit Suisse Group increased their price objective on FedEx from $236.00 to $241.00 and gave the stock an “outperform” rating in a report on Wednesday, March 20th. Finally, Cowen reiterated an “outperform” rating and set a $237.00 price objective (down from $242.00) on shares of FedEx in a report on Thursday, March 14th. Two research analysts have rated the stock with a sell rating, seven have issued a hold rating and thirteen have assigned a buy rating to the company. The company currently has an average rating of “Buy” and an average price target of $212.33.
FedEx (NYSE:FDX) last announced its quarterly earnings results on Tuesday, March 19th. The shipping service provider reported $3.03 earnings per share (EPS) for the quarter, missing the 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 business had revenue of $17.01 billion during the quarter, compared to the consensus estimate of $17.70 billion. The firm’s revenue was up 2.9% compared to the same quarter last year. During the same quarter last year, the company earned $3.72 earnings per share. On average, research analysts predict that FedEx will post 15.44 EPS for the current fiscal year.
In related news, Director Susan C. Schwab sold 3,000 shares of the stock in a transaction that occurred on Wednesday, March 27th. The stock was sold at an average price of $175.11, for a total transaction of $525,330.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Alan B. Graf, Jr. sold 27,000 shares of the stock in a transaction that occurred on Thursday, March 21st. The shares were sold at an average price of $173.30, for a total value of $4,679,100.00. Following the transaction, the executive vice president now directly owns 200,320 shares of the company’s stock, valued at $34,715,456. The disclosure for this sale can be found here. Insiders have sold 185,650 shares of company stock valued at $34,751,470 over the last three months. Insiders own 8.50% of the company’s stock.
Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Castle Rock Wealth Management LLC acquired a new stake in shares of FedEx in the first quarter valued at approximately $13,062,000. Cordasco Financial Network lifted its position in shares of FedEx by 181.8% in the first quarter. Cordasco Financial Network now owns 155 shares of the shipping service provider’s stock valued at $28,000 after buying an additional 100 shares during the last quarter. Covenant Multifamily Offices LLC acquired a new stake in shares of FedEx in the first quarter valued at approximately $29,000. Berman Capital Advisors LLC acquired a new stake in shares of FedEx in the fourth quarter valued at approximately $25,000. Finally, Evolution Wealth Advisors LLC acquired a new stake in shares of FedEx in the first quarter valued at approximately $31,000. 70.48% of the stock is owned by institutional investors.
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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