Bank of America Lowers FedEx (NYSE:FDX) Price Target to $376.00

FedEx (NYSE:FDX) had its price target cut by equities researchers at Bank of America from $440.00 to $376.00 in a research note issued to investors on Tuesday,Benzinga reports. The brokerage currently has a “buy” rating on the shipping service provider’s stock. Bank of America‘s price target points to a potential upside of 14.09% from the company’s previous close.

Several other research firms have also recently weighed in on FDX. UBS Group began coverage on FedEx in a research note on Wednesday, May 27th. They issued a “buy” rating and a $445.00 price target for the company. Seaport Research Partners began coverage on FedEx in a research note on Wednesday, May 27th. They issued a “buy” rating for the company. Deutsche Bank Aktiengesellschaft cut FedEx from a “buy” rating to a “hold” rating in a research note on Wednesday, May 27th. The Goldman Sachs Group lowered their price objective on shares of FedEx from $405.00 to $375.00 and set a “buy” rating on the stock in a research report on Monday. Finally, Zacks Research downgraded shares of FedEx from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, March 18th. Eighteen investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $381.26.

FedEx Stock Down 2.6%

FedEx stock traded down $8.76 during trading hours on Tuesday, hitting $329.57. The stock had a trading volume of 2,398,089 shares, compared to its average volume of 1,615,251. The company has a quick ratio of 1.44, a current ratio of 1.47 and a debt-to-equity ratio of 0.77. The stock has a market capitalization of $78.64 billion, a P/E ratio of 17.83, a price-to-earnings-growth ratio of 1.57 and a beta of 1.28. FedEx has a 12-month low of $214.82 and a 12-month high of $413.87. The stock’s 50-day moving average price is $376.08 and its 200-day moving average price is $339.12.

FedEx (NYSE:FDX) last issued its earnings results on Thursday, March 19th. The shipping service provider reported $5.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.12 by $1.13. The business had revenue of $24 billion during the quarter, compared to analysts’ expectations of $23.44 billion. FedEx had a net margin of 4.88% and a return on equity of 16.76%. The business’s revenue for the quarter was up 8.3% compared to the same quarter last year. During the same period in the previous year, the company earned $4.51 earnings per share. Equities research analysts anticipate that FedEx will post 19.63 EPS for the current fiscal year.

Insider Activity at FedEx

In other FedEx news, Director Susan C. Schwab sold 5,795 shares of the stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $369.00, for a total transaction of $2,138,355.00. Following the completion of the transaction, the director owned 10,038 shares of the company’s stock, valued at $3,704,022. This represents a 36.60% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Gina F. Adams sold 20,450 shares of the stock in a transaction that occurred on Tuesday, April 14th. The shares were sold at an average price of $366.45, for a total value of $7,493,902.50. Following the transaction, the executive vice president directly owned 19,403 shares of the company’s stock, valued at approximately $7,110,229.35. The trade was a 51.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 48,104 shares of company stock valued at $17,599,006. Insiders own 0.53% of the company’s stock.

Hedge Funds Weigh In On FedEx

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Hollencrest Capital Management bought a new stake in shares of FedEx in the 1st quarter worth about $25,000. Bayban bought a new stake in shares of FedEx in the 1st quarter worth about $26,000. EFG International AG bought a new stake in shares of FedEx in the 4th quarter worth about $27,000. Wealth Watch Advisors INC bought a new stake in shares of FedEx in the 3rd quarter worth about $28,000. Finally, Ameriflex Group Inc. increased its holdings in shares of FedEx by 103.3% in the 3rd quarter. Ameriflex Group Inc. now owns 124 shares of the shipping service provider’s stock worth $29,000 after buying an additional 63 shares during the last quarter. 84.47% of the stock is owned by hedge funds and other institutional investors.

FedEx News Summary

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: BofA Securities kept a Buy rating on FedEx and said the FedEx Freight spin-off could create cost savings and more buyback capacity for the parent company, which supports the long-term investment case. FedEx Freight Spin-Off Unlocks Cost Savings, Buyback Potential At FedEx
• Positive Sentiment: Several articles note that FedEx has historically beaten earnings estimates and may have another beat when it reports later this month, which could help the stock if results and guidance come in strong. Should You Buy FedEx Stock Before June 23?
• Neutral Sentiment: FedEx completed the spin-off of FedEx Freight, creating a separate publicly traded LTL carrier. This is a major structural change, but the market is still waiting to see how much value it ultimately creates for FDX shareholders.
• Neutral Sentiment: FedEx Freight’s launch and related coverage, including comments about self-driving technology and growth plans, highlight strategic opportunities, but these developments are not yet a direct catalyst for FedEx’s core parcel business.
• Negative Sentiment: Rothschild & Co Redburn and BNP Paribas Exane both cut their price targets on FedEx and kept neutral ratings, reinforcing concerns that the stock may have limited upside from current levels. MarketScreener MarketScreener
• Negative Sentiment: Other firms also lowered targets, including BMO Capital and HSBC, adding to the overhang on the shares as investors reassess FedEx’s earnings power after the spinoff.

FedEx Company Profile

FedEx Corporation (NYSE: FDX) is a global logistics and courier company headquartered in Memphis, Tennessee. Founded by Frederick W. Smith in 1971 and beginning operations in the early 1970s, the company pioneered overnight express shipping and has since expanded into a diversified portfolio of transportation, e-commerce and supply-chain services. FedEx operates an integrated air-and-ground network that moves parcels, freight and documents for businesses and consumers worldwide.

FedEx’s core operating segments include express parcel delivery via its FedEx Express division, domestic and residential parcel delivery through FedEx Ground, less-than-truckload (LTL) freight services, and logistics and supply-chain management solutions.