FedEx (NYSE:FDX) Shares Gap Up on Better-Than-Expected Earnings

FedEx Co. (NYSE:FDX – Get Rating) gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $204.05, but opened at $226.05. FedEx shares last traded at $221.99, with a volume of 2,598,131 shares changing hands.

The shipping service provider reported $3.41 EPS for the quarter, topping analysts’ consensus estimates of $2.67 by $0.74. FedEx had a net margin of 3.54% and a return on equity of 19.17%. The business had revenue of $22.17 billion for the quarter, compared to analysts’ expectations of $22.74 billion. During the same period in the previous year, the company posted $4.59 earnings per share. The business’s revenue for the quarter was down 6.2% compared to the same quarter last year.

FedEx Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, April 3rd. Stockholders of record on Monday, March 13th will be given a dividend of $1.15 per share. The ex-dividend date of this dividend is Friday, March 10th. This represents a $4.60 dividend on an annualized basis and a dividend yield of 2.09%. FedEx’s payout ratio is currently 36.14%.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on the stock. Stephens lifted their price target on shares of FedEx from $200.00 to $290.00 and gave the stock an “overweight” rating in a research note on Friday. Jefferies Financial Group lifted their price target on shares of FedEx from $170.00 to $175.00 and gave the stock a “hold” rating in a research note on Thursday, December 22nd. StockNews.com assumed coverage on shares of FedEx in a research note on Thursday. They issued a “hold” rating for the company. Deutsche Bank Aktiengesellschaft lifted their price target on shares of FedEx from $190.00 to $217.00 in a research note on Monday, November 28th. Finally, Wells Fargo & Company boosted their target price on shares of FedEx from $225.00 to $240.00 and gave the company an “equal weight” rating in a research note on Friday. Ten equities research analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the company’s stock. According to MarketBeat.com, FedEx presently has an average rating of “Moderate Buy” and an average target price of $230.75.

Insider Buying and Selling at FedEx

In other news, Director Amy B. Lane acquired 280 shares of FedEx stock in a transaction on Tuesday, January 3rd. The stock was bought at an average cost of $175.83 per share, with a total value of $49,232.40. Following the completion of the purchase, the director now owns 1,529 shares of the company’s stock, valued at $268,844.07. The purchase was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 8.62% of the company’s stock.

Hedge Funds Weigh In On FedEx

A number of large investors have recently made changes to their positions in FDX. Norges Bank acquired a new position in shares of FedEx in the 4th quarter valued at about $388,787,000. International Assets Investment Management LLC increased its holdings in FedEx by 24,422.8% in the fourth quarter. International Assets Investment Management LLC now owns 1,169,490 shares of the shipping service provider’s stock worth $1,678,000 after buying an additional 1,164,721 shares during the last quarter. Edmp Inc. increased its holdings in FedEx by 21,900.8% in the fourth quarter. Edmp Inc. now owns 882,454 shares of the shipping service provider’s stock worth $5,095,000 after buying an additional 878,443 shares during the last quarter. Renaissance Technologies LLC acquired a new position in FedEx in the third quarter worth approximately $122,633,000. Finally, Mawer Investment Management Ltd. acquired a new position in FedEx in the second quarter worth approximately $181,239,000. Institutional investors and hedge funds own 72.02% of the company’s stock.

FedEx Stock Up 8.0 %

The business has a fifty day moving average of $201.14 and a 200 day moving average of $181.41. The stock has a market cap of $55.61 billion, a price-to-earnings ratio of 17.31, a P/E/G ratio of 1.20 and a beta of 1.31. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.30 and a quick ratio of 1.25.

FedEx Company Profile

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FedEx Corp. provides a broad portfolio of transportation, e-commerce and business services under the FedEx brand. It operates through the following segments: FedEx Express, FedEx Ground, FedEx Freight, FedEx Services, and Corporate, Other & Eliminations. The FedEx Express segment consists of domestic and international shipping services for delivery of packages and freight.