FedEx (FDX) Raised to Hold at Zacks Investment Research
FedEx (NYSE:FDX) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.
According to Zacks, “Shares of FedEx have outperformed its industry on a year-to-date basis. The strong growth of e-commerce is a positive for the company. FedEx's efforts to modernize its aircraft fleet are also encouraging. The company has an impressive dividend payment history. In June 2017, the company raised its quarterly dividend by 25%. With respect to buybacks, the company repurchased 2.96 million shares in fiscal 2017. Moreover, the hike in shipping rates, announced in September 2017, should boost revenues. However, high costs are expected to hurt the company's bottom line in the second quarter of fiscal 2018 as was the case in the preceding quarter. Costs related to the integration process of TNT Express and the increased investments at its Ground unit are also likely to hurt the bottom-line. Detailed results should be out on Dec 19.”
A number of other research analysts also recently commented on FDX. Citigroup boosted their price objective on shares of FedEx to $275.00 and gave the company a “buy” rating in a research report on Tuesday. Oppenheimer reaffirmed a “buy” rating and set a $229.00 price objective on shares of FedEx in a research report on Wednesday, September 20th. Stifel Nicolaus reaffirmed a “hold” rating and set a $221.00 price objective (up from $216.00) on shares of FedEx in a research report on Wednesday, September 20th. Wells Fargo & Company boosted their price objective on shares of FedEx from $235.00 to $240.00 and gave the company an “outperform” rating in a research report on Thursday, September 21st. Finally, Bank of America reaffirmed a “buy” rating and set a $240.00 price objective on shares of FedEx in a research report on Wednesday, September 20th. One analyst has rated the stock with a sell rating, six have assigned a hold rating and twenty-three have issued a buy rating to the stock. The stock presently has an average rating of “Buy” and a consensus price target of $233.41.
FedEx (NYSE:FDX) last announced its quarterly earnings data on Tuesday, September 19th. The shipping service provider reported $2.51 EPS for the quarter, missing the Zacks’ consensus estimate of $3.17 by ($0.66). FedEx had a net margin of 4.72% and a return on equity of 20.69%. The company had revenue of $15.30 billion for the quarter, compared to analysts’ expectations of $15.35 billion. During the same period in the previous year, the firm posted $2.90 earnings per share. The business’s revenue for the quarter was up 4.1% on a year-over-year basis. research analysts predict that FedEx will post 12.47 earnings per share for the current fiscal year.
In other FedEx news, EVP Donald F. Colleran sold 10,000 shares of the company’s stock in a transaction dated Thursday, September 21st. The shares were sold at an average price of $220.00, for a total transaction of $2,200,000.00. Following the transaction, the executive vice president now directly owns 30,499 shares in the company, valued at approximately $6,709,780. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Kim Jabal sold 3,980 shares of the company’s stock in a transaction dated Wednesday, November 1st. The shares were sold at an average price of $225.55, for a total transaction of $897,689.00. Following the transaction, the director now owns 6,080 shares in the company, valued at $1,371,344. The disclosure for this sale can be found here. In the last ninety days, insiders sold 40,094 shares of company stock worth $9,024,637. 8.45% of the stock is owned by insiders.
A number of institutional investors have recently added to or reduced their stakes in FDX. FNY Managed Accounts LLC acquired a new stake in shares of FedEx in the 1st quarter valued at approximately $100,000. Salem Investment Counselors Inc. raised its position in shares of FedEx by 2.8% in the 2nd quarter. Salem Investment Counselors Inc. now owns 479 shares of the shipping service provider’s stock valued at $104,000 after acquiring an additional 13 shares during the period. Krilogy Financial LLC raised its position in shares of FedEx by 0.4% in the 2nd quarter. Krilogy Financial LLC now owns 511 shares of the shipping service provider’s stock valued at $111,000 after acquiring an additional 2 shares during the period. Alexandria Capital LLC raised its position in shares of FedEx by 2.5% in the 2nd quarter. Alexandria Capital LLC now owns 540 shares of the shipping service provider’s stock valued at $117,000 after acquiring an additional 13 shares during the period. Finally, Financial Engines Advisors L.L.C. acquired a new stake in shares of FedEx in the 3rd quarter valued at approximately $132,000. Institutional investors own 75.73% of the company’s stock.
FedEx Company Profile
FedEx Corporation (FedEx) provides a portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the FedEx brand. The Company’s segments include FedEx Express, TNT Express, FedEx Ground, FedEx Freight and FedEx Services.
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