FedEx Corp. (FDX) Sees Large Volume Increase on Better-Than-Expected Earnings
Shares of FedEx Corp. (NYSE:FDX) saw unusually-high trading volume on Tuesday following a stronger than expected earnings report. Approximately 1,519,844 shares traded hands during mid-day trading, an increase of 16% from the previous session’s volume of 1,305,707 shares.The stock last traded at $162.98 and had previously closed at $161.26.
The shipping service provider reported $2.90 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.78 by $0.12. FedEx Corp. had a net margin of 3.61% and a return on equity of 20.62%. The firm earned $14.70 billion during the quarter, compared to the consensus estimate of $14.61 billion. During the same quarter in the previous year, the firm posted $2.42 EPS. The company’s revenue for the quarter was up 19.5% compared to the same quarter last year.
The firm also recently disclosed a quarterly dividend, which will be paid on Monday, October 3rd. Stockholders of record on Monday, September 12th will be given a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a dividend yield of 0.98%. The ex-dividend date is Thursday, September 8th. FedEx Corp.’s payout ratio is 24.84%.
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FDX has been the subject of a number of recent research reports. Wolfe Research raised shares of FedEx Corp. from a “market perform” rating to an “outperform” rating in a research report on Friday, July 1st. Cowen and Company reaffirmed a “market perform” rating and issued a $110.00 target price on shares of FedEx Corp. in a report on Sunday, July 31st. Zacks Investment Research downgraded shares of FedEx Corp. from a “hold” rating to a “sell” rating in a report on Tuesday, August 23rd. Vetr downgraded shares of FedEx Corp. from a “strong-buy” rating to a “buy” rating and set a $179.94 target price for the company. in a report on Monday, August 8th. Finally, Bank of America Corp. reaffirmed a “buy” rating on shares of FedEx Corp. in a report on Thursday, June 16th. Nine investment analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company’s stock. The stock has a consensus rating of “Buy” and an average target price of $174.70.
In other news, Director John A. Edwardson sold 2,882 shares of the stock in a transaction that occurred on Friday, August 5th. The shares were sold at an average price of $162.63, for a total transaction of $468,699.66. Following the transaction, the director now directly owns 29,090 shares in the company, valued at $4,730,906.70. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CEO Michael L. Ducker sold 5,000 shares of the stock in a transaction that occurred on Friday, July 22nd. The shares were sold at an average price of $158.43, for a total transaction of $792,150.00. Following the transaction, the chief executive officer now owns 56,265 shares in the company, valued at $8,914,063.95. The disclosure for this sale can be found here. Insiders own 8.67% of the company’s stock.
Several institutional investors have recently added to or reduced their stakes in FDX. Quadrant Capital Group LLC increased its position in FedEx Corp. by 0.9% in the second quarter. Quadrant Capital Group LLC now owns 1,623 shares of the shipping service provider’s stock worth $238,000 after buying an additional 15 shares in the last quarter. Moody National Bank Trust Division increased its position in FedEx Corp. by 0.3% in the second quarter. Moody National Bank Trust Division now owns 4,592 shares of the shipping service provider’s stock worth $697,000 after buying an additional 15 shares in the last quarter. Courier Capital Corp increased its position in FedEx Corp. by 0.5% in the second quarter. Courier Capital Corp now owns 4,642 shares of the shipping service provider’s stock worth $705,000 after buying an additional 25 shares in the last quarter. AMG National Trust Bank increased its position in FedEx Corp. by 0.3% in the second quarter. AMG National Trust Bank now owns 7,826 shares of the shipping service provider’s stock worth $1,188,000 after buying an additional 26 shares in the last quarter. Finally, Bangor Savings Bank increased its position in FedEx Corp. by 0.4% in the second quarter. Bangor Savings Bank now owns 7,788 shares of the shipping service provider’s stock worth $1,182,000 after buying an additional 28 shares in the last quarter. Hedge funds and other institutional investors own 73.82% of the company’s stock.
The firm has a market cap of $43.19 billion, a PE ratio of 24.98 and a beta of 1.35. The stock’s 50-day moving average price is $164.16 and its 200-day moving average price is $161.10.
FedEx Corp. Company Profile
FedEx Corporation (FedEx) provides a portfolio of transportation, e-commerce and business services under the FedEx brand. The Company offers its services through companies constituting four business segments: FedEx Express, FedEx Ground, FedEx Freight and FedEx Services. FedEx Express offers a range of domestic and international shipping services for delivery of packages and freight.
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