FedEx (NYSE:FDX) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a report issued on Thursday. The brokerage currently has a $310.00 target price on the shipping service provider’s stock. Zacks Investment Research‘s price target points to a potential upside of 13.01% from the stock’s current price.
According to Zacks, “Shares of FedEx have outperformed its industry as well as rival United Parcel Service over the past year. While FedEx has gained 45.9%, the industry it belongs to and UPS have rallied 27.1% and 17.3%, respectively, in the same time period. 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. The positive sentiment surrounding the stock may be gauged from the fact that the Zacks Consensus Estimate for fiscal 2018 earnings has increased 5.3% over the last 60 days. However, high costs are hurting the bottom line. Significant investments at the company's Ground unit are pushing up costs.”
FDX has been the topic of a number of other research reports. Cowen reiterated an “outperform” rating and issued a $240.00 price objective on shares of FedEx in a research report on Friday, October 13th. Oppenheimer reiterated a “buy” rating and issued a $265.00 price objective (up previously from $236.00) on shares of FedEx in a research report on Wednesday, December 20th. BMO Capital Markets reiterated a “buy” rating and issued a $300.00 price objective on shares of FedEx in a research report on Monday, January 8th. Bank of America reiterated a “buy” rating and issued a $240.00 price objective on shares of FedEx in a research report on Wednesday, September 20th. Finally, Sanford C. Bernstein set a $212.00 price objective on FedEx and gave the stock a “hold” rating in a research report on Wednesday, November 15th. One analyst has rated the stock with a sell rating, three have issued a hold rating, twenty-three have given a buy rating and one has given a strong buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and an average target price of $270.49.
FedEx (NYSE:FDX) last posted its earnings results on Tuesday, December 19th. The shipping service provider reported $3.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.89 by $0.29. FedEx had a return on equity of 20.56% and a net margin of 4.74%. The firm had revenue of $16.30 billion for the quarter, compared to the consensus estimate of $15.67 billion. During the same quarter in the prior year, the business posted $2.80 earnings per share. The business’s quarterly revenue was up 9.4% on a year-over-year basis. equities research analysts anticipate that FedEx will post 13.28 earnings per share for the current fiscal year.
In other FedEx news, EVP Robert B. Carter sold 3,970 shares of the firm’s stock in a transaction dated Thursday, December 21st. The stock was sold at an average price of $250.73, for a total transaction of $995,398.10. Following the sale, the executive vice president now owns 187,025 shares in the company, valued at $46,892,778.25. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, 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 sale, the insider now owns 36,747 shares in the company, valued at approximately $8,395,219.62. The disclosure for this sale can be found here. Insiders have sold 68,671 shares of company stock worth $17,137,160 in the last 90 days. Company insiders own 8.45% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in FDX. Salem Investment Counselors Inc. grew its stake in shares of FedEx by 2.8% during the second quarter. Salem Investment Counselors Inc. now owns 479 shares of the shipping service provider’s stock valued at $104,000 after buying an additional 13 shares during the last quarter. Krilogy Financial LLC grew its stake in shares of FedEx by 0.4% during the second quarter. Krilogy Financial LLC now owns 511 shares of the shipping service provider’s stock valued at $111,000 after buying an additional 2 shares during the last quarter. Financial Engines Advisors L.L.C. bought a new position in shares of FedEx during the third quarter valued at about $132,000. Massey Quick Simon & CO. LLC bought a new position in shares of FedEx during the third quarter valued at about $136,000. Finally, Carroll Financial Associates Inc. grew its stake 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 valued at $140,000 after buying an additional 240 shares during the last quarter. Institutional investors and hedge funds own 75.69% of the company’s stock.
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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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