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 note issued on Wednesday. The brokerage currently has a $282.00 target price on the shipping service provider’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 13.20% from the company’s current price.
According to Zacks, “Shares of FedEx have outperformed its industry and rival United Parcel Service in a year's time. Solid e-commerce growth is a huge positive for the company. To boosts its e-commerce portfolio, the company acquired P2P earlier in 2018. We expect the company to perform impressively in the fourth quarter of fiscal 2018 backed by e-commerce growth. Detailed results will be available on Jun 19. In fact, the positive sentiment surrounding the stock can be gauged from the fact that the Zacks Consensus Estimate for fiscal fourth-quarter earnings has been revised 1.4% upward over the last 30 days. Efforts to reward its shareholders are also noteworthy. Moreover, a dividend hike at FedEx in the coming days cannot be ruled out, in light of the savings induced by the Tax Cuts and Jobs Act. High costs, however, continue to hurt the bottom line.”
Several other research analysts have also recently weighed in on FDX. Robert W. Baird reiterated a “buy” rating and set a $270.00 price objective on shares of FedEx in a research report on Monday, February 12th. Sanford C. Bernstein upgraded FedEx from a “market perform” rating to an “outperform” rating and set a $290.00 price objective on the stock in a research report on Friday, February 23rd. Oppenheimer increased their price objective on FedEx from $265.00 to $274.00 and gave the stock an “outperform” rating in a research report on Friday, March 16th. JPMorgan Chase & Co. reiterated a “buy” rating and set a $315.00 price objective on shares of FedEx in a research report on Monday, March 19th. Finally, Stifel Nicolaus upgraded FedEx from a “hold” rating to a “buy” rating and increased their price objective for the stock from $284.00 to $295.00 in a research report on Wednesday, March 21st. One analyst has rated the stock with a sell rating, two have issued a hold rating and twenty-three have assigned a buy rating to the company’s stock. The company presently has an average rating of “Buy” and a consensus target price of $280.38.
FedEx (NYSE:FDX) last posted its quarterly earnings data on Tuesday, March 20th. The shipping service provider reported $3.72 earnings per share for the quarter, topping the consensus estimate of $3.11 by $0.61. The firm had revenue of $16.53 billion for the quarter, compared to analysts’ expectations of $16.17 billion. FedEx had a return on equity of 21.65% and a net margin of 6.99%. The company’s quarterly revenue was up 10.2% compared to the same quarter last year. During the same quarter last year, the business earned $2.35 EPS. equities analysts expect that FedEx will post 15.13 EPS for the current fiscal year.
In related news, Director Paul S. Walsh sold 4,400 shares of the firm’s stock in a transaction dated Wednesday, April 18th. The stock was sold at an average price of $255.00, for a total value of $1,122,000.00. Following the sale, the director now directly owns 14,400 shares of the company’s stock, valued at $3,672,000. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Frederick W. Smith sold 124,000 shares of the firm’s stock in a transaction dated Wednesday, April 18th. The shares were sold at an average price of $255.99, for a total value of $31,742,760.00. Following the completion of the sale, the chief executive officer now directly owns 14,864,465 shares in the company, valued at $3,805,154,395.35. The disclosure for this sale can be found here. Company insiders own 8.45% of the company’s stock.
A number of large investors have recently added to or reduced their stakes in FDX. Moneta Group Investment Advisors LLC boosted its stake in shares of FedEx by 14,866.7% during the first quarter. Moneta Group Investment Advisors LLC now owns 449 shares of the shipping service provider’s stock valued at $108,000 after purchasing an additional 446 shares in the last quarter. Pinnacle Wealth Planning Services Inc. acquired a new stake in shares of FedEx during the fourth quarter valued at about $144,000. We Are One Seven LLC acquired a new stake in shares of FedEx during the fourth quarter valued at about $148,000. Centaurus Financial Inc. acquired a new stake in shares of FedEx during the first quarter valued at about $156,000. Finally, Noesis Capital Mangement Corp acquired a new stake in shares of FedEx during the fourth quarter valued at about $202,000. 73.87% of the stock is currently owned by institutional investors and hedge funds.
FedEx Company Profile
FedEx Corporation provides transportation, e-commerce, and business services worldwide. The company's FedEx Express segment provides various shipping services for the delivery of packages and freight; international trade services specializing in customs brokerage, and ocean and air freight forwarding services; assistance with the customs-trade partnership against terrorism program; and customs clearance services, as well as an information tool that allows customers to track and manage imports.
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