FedEx (FDX) Upgraded to “Buy” by Zacks Investment Research

FedEx (NYSE:FDX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Friday. The firm presently has a $297.00 price target on the shipping service provider’s stock. Zacks Investment Research‘s target price points to a potential upside of 11.85% from the stock’s previous close.

According to Zacks, “Shares of FedEx have outperformed its industry in 2017. Ushering in further good news, FedEx experienced a highly successful holiday season driven by increased package volumes. In fact, the strong growth of e-commerce is a huge positive for the company. The new tax law is also expected to aid the company significantly. The company's efforts to reward its shareholders through dividend payments and share buybacks are also encouraging. However, the company's operations have been disrupted by the June 2017 cyberattack. Moreover, high costs are hurting the bottom line. Significant investments at the company's Ground unit are pushing up costs.”

Several other research analysts also recently commented on FDX. ValuEngine raised shares of FedEx from a “hold” rating to a “buy” rating in a report on Sunday, December 31st. Wells Fargo & Co set a $275.00 price objective on shares of FedEx and gave the company a “buy” rating in a report on Wednesday, December 20th. Loop Capital increased their price objective on shares of FedEx to $318.00 in a report on Thursday. Oppenheimer reissued a “buy” rating and set a $229.00 price objective on shares of FedEx in a report on Wednesday, September 20th. Finally, Stifel Nicolaus reissued a “hold” rating and set a $221.00 price objective (up previously from $216.00) on shares of FedEx in a report on Wednesday, September 20th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and twenty-three have issued a buy rating to the company’s stock. The stock presently has an average rating of “Buy” and an average price target of $263.04.

Shares of FedEx (FDX) traded up $0.66 during mid-day trading on Friday, reaching $265.54. The company’s stock had a trading volume of 1,450,000 shares, compared to its average volume of 1,840,000. FedEx has a 1-year low of $182.89 and a 1-year high of $271.39. The company has a debt-to-equity ratio of 0.89, a current ratio of 1.57 and a quick ratio of 1.50. The stock has a market cap of $71,140.00, a price-to-earnings ratio of 24.41, a PEG ratio of 1.58 and a beta of 1.36.

FedEx (NYSE:FDX) last released its quarterly earnings data on Tuesday, December 19th. The shipping service provider reported $3.18 EPS for the quarter, beating the consensus estimate of $2.89 by $0.29. FedEx had a net margin of 4.74% and a return on equity of 20.56%. The business had revenue of $16.30 billion during the quarter, compared to the consensus estimate of $15.67 billion. During the same quarter in the prior year, the firm earned $2.80 EPS. The business’s revenue was up 9.4% on a year-over-year basis. equities analysts anticipate that FedEx will post 12.92 earnings per share for the current fiscal year.

In other FedEx news, insider Henry J. Maier sold 11,150 shares of the firm’s stock in a transaction dated Thursday, October 26th. The shares were sold at an average price of $228.46, for a total value of $2,547,329.00. Following the completion of the sale, the insider now owns 36,747 shares of the company’s stock, valued at $8,395,219.62. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, COO David J. Bronczek sold 46,555 shares of the firm’s stock in a transaction dated Tuesday, January 2nd. The stock was sold at an average price of $255.49, for a total transaction of $11,894,336.95. Following the completion of the sale, the chief operating officer now directly owns 48,562 shares of the company’s stock, valued at approximately $12,407,105.38. The disclosure for this sale can be found here. In the last ninety days, insiders sold 65,655 shares of company stock valued at $16,334,753. 8.45% of the stock is owned by insiders.

Hedge funds and other institutional investors have recently made changes to their positions in the business. Salem Investment Counselors Inc. lifted its stake in FedEx by 2.8% in the second quarter. Salem Investment Counselors Inc. now owns 479 shares of the shipping service provider’s stock worth $104,000 after purchasing an additional 13 shares during the last quarter. Krilogy Financial LLC lifted its stake in FedEx by 0.4% in the second quarter. Krilogy Financial LLC now owns 511 shares of the shipping service provider’s stock worth $111,000 after purchasing an additional 2 shares during the last quarter. Financial Engines Advisors L.L.C. purchased a new position in shares of FedEx during the third quarter worth approximately $132,000. Massey Quick Simon & CO. LLC purchased a new position in shares of FedEx during the third quarter worth approximately $136,000. Finally, Carroll Financial Associates Inc. increased its position in shares of FedEx by 61.1% during the third quarter. Carroll Financial Associates Inc. now owns 633 shares of the shipping service provider’s stock worth $140,000 after acquiring an additional 240 shares during the period. 75.60% of the stock is owned by institutional investors and hedge funds.

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About FedEx

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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