FedEx (NYSE:FDX) Shares Gap Down – Should You Sell?

Shares of FedEx Co. (NYSE:FDX) gapped down prior to trading on Thursday . The stock had previously closed at $275.06, but opened at $265.00. FedEx shares last traded at $267.43, with a volume of 315,926 shares changing hands.

Analyst Ratings Changes

FDX has been the topic of several analyst reports. StockNews.com raised shares of FedEx from a “hold” rating to a “buy” rating in a research note on Friday, December 20th. Raymond James upped their target price on FedEx from $305.00 to $320.00 and gave the company an “outperform” rating in a research note on Friday, December 20th. Barclays boosted their target price on shares of FedEx from $350.00 to $365.00 and gave the company an “overweight” rating in a report on Wednesday, November 13th. TD Cowen upped their price objective on FedEx from $328.00 to $337.00 and gave the stock a “buy” rating in a report on Friday, December 20th. Finally, Citigroup raised their target price on shares of FedEx from $301.00 to $331.00 and gave the company a “buy” rating in a research note on Tuesday, November 12th. One research analyst has rated the stock with a sell rating, eight have issued a hold rating, seventeen have given a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $325.43.

FedEx Price Performance

The business’s 50 day moving average is $280.84 and its two-hundred day moving average is $282.81. The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.19 and a current ratio of 1.23. The firm has a market capitalization of $64.84 billion, a PE ratio of 17.14, a price-to-earnings-growth ratio of 1.12 and a beta of 1.20.

FedEx (NYSE:FDX) last issued its quarterly earnings results on Thursday, December 19th. The shipping service provider reported $4.05 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.88 by $0.17. FedEx had a return on equity of 15.59% and a net margin of 4.45%. The firm had revenue of $22 billion during the quarter, compared to the consensus estimate of $22.14 billion. During the same quarter last year, the company posted $3.99 EPS. The company’s revenue for the quarter was down .7% on a year-over-year basis. Equities research analysts anticipate that FedEx Co. will post 19.14 earnings per share for the current fiscal year.

FedEx Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, January 3rd. Stockholders of record on Monday, December 9th were issued a $1.38 dividend. The ex-dividend date of this dividend was Monday, December 9th. This represents a $5.52 dividend on an annualized basis and a dividend yield of 2.05%. FedEx’s payout ratio is 35.18%.

Insider Buying and Selling

In other news, EVP John W. Dietrich purchased 1,000 shares of the stock in a transaction that occurred on Tuesday, January 7th. The stock was bought at an average cost of $273.98 per share, for a total transaction of $273,980.00. Following the acquisition, the executive vice president now directly owns 9,067 shares of the company’s stock, valued at $2,484,176.66. This represents a 12.40 % increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Richard W. Smith sold 2,576 shares of the company’s stock in a transaction dated Tuesday, January 7th. The shares were sold at an average price of $276.93, for a total transaction of $713,371.68. Following the transaction, the chief executive officer now directly owns 111,886 shares of the company’s stock, valued at approximately $30,984,589.98. This trade represents a 2.25 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 8.87% of the stock is owned by corporate insiders.

Institutional Trading of FedEx

A number of hedge funds have recently modified their holdings of FDX. Fortitude Family Office LLC increased its holdings in shares of FedEx by 144.4% during the fourth quarter. Fortitude Family Office LLC now owns 88 shares of the shipping service provider’s stock valued at $25,000 after acquiring an additional 52 shares in the last quarter. Evermay Wealth Management LLC increased its stake in FedEx by 72.7% during the 3rd quarter. Evermay Wealth Management LLC now owns 95 shares of the shipping service provider’s stock valued at $26,000 after purchasing an additional 40 shares in the last quarter. Peoples Financial Services CORP. purchased a new position in FedEx in the fourth quarter worth about $28,000. City Holding Co. bought a new position in shares of FedEx in the fourth quarter worth approximately $28,000. Finally, Kentucky Trust Co bought a new stake in shares of FedEx during the fourth quarter valued at approximately $28,000. Institutional investors own 84.47% of the company’s stock.

About FedEx

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates through FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services segments. The FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; and time-critical transportation services.