FedEx Co. (NYSE:FDX) gapped up prior to trading on Thursday after Zacks Investment Research upgraded the stock from a hold rating to a buy rating. The stock had previously closed at $232.48, but opened at $242.54. Zacks Investment Research now has a $272.00 price target on the stock. FedEx shares last traded at $251.07, with a volume of 5898100 shares.
According to Zacks, “Shares of FedEx have outperformed its industry and rival United Parcel Service on a year-to-date basis. The company has gained 34.8% while the industry it belongs to and UPS have rallied 14% and 3.2%, respectively, in the same period. Ushering in further good news, FedEx also outperformed in the second quarter of fiscal 2018 driven by increased package volumes during the current holiday season. Growth was witnessed across all the major segments of the company. In fact, the strong growth of e-commerce is a huge positive for the company. Meanwhile, FedEx is on track to deliver a strong performance in the ongoing holiday season. Efforts to reward its shareholders through dividend payments and share buybacks are also encouraging. High costs are, however, hurting the bottom line.”
Several other research firms have also recently issued reports on FDX. Stephens set a $306.00 price objective on FedEx and gave the stock a “buy” rating in a report on Wednesday. BMO Capital Markets lifted their price objective on FedEx from $265.00 to $270.00 and gave the stock an “outperform” rating in a report on Wednesday. Wells Fargo & Company set a $275.00 price objective on FedEx and gave the stock a “buy” rating in a report on Wednesday. Sanford C. Bernstein set a $236.00 price objective on FedEx and gave the stock a “hold” rating in a report on Wednesday. Finally, Credit Suisse Group reiterated a “positive” rating and issued a $283.00 price objective (up from $278.00) on shares of FedEx in a report on Wednesday. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and twenty-four have given a buy rating to the company. The company has a consensus rating of “Buy” and an average price target of $248.94.
Hedge funds have recently added to or reduced their stakes in the company. Salem Investment Counselors Inc. increased its holdings in FedEx by 2.8% in the 2nd quarter. Salem Investment Counselors Inc. now owns 479 shares of the shipping service provider’s stock valued at $104,000 after purchasing an additional 13 shares during the last quarter. Krilogy Financial LLC increased its holdings in FedEx by 0.4% in the 2nd quarter. Krilogy Financial LLC now owns 511 shares of the shipping service provider’s stock valued at $111,000 after purchasing an additional 2 shares during the last quarter. FNY Managed Accounts LLC acquired a new stake in FedEx in the 1st quarter valued at approximately $100,000. Alexandria Capital LLC increased its holdings in FedEx by 2.5% in the 2nd quarter. Alexandria Capital LLC now owns 540 shares of the shipping service provider’s stock valued at $117,000 after purchasing an additional 13 shares during the last quarter. Finally, Financial Engines Advisors L.L.C. acquired a new stake in FedEx in the 3rd quarter valued at approximately $132,000. 75.60% of the stock is currently owned by hedge funds and other institutional investors.
The company has a debt-to-equity ratio of 0.91, a quick ratio of 1.57 and a current ratio of 1.63. The company has a market cap of $65,036.54, a price-to-earnings ratio of 19.74, a price-to-earnings-growth ratio of 1.53 and a beta of 1.36.
FedEx (NYSE:FDX) last posted its earnings results on Tuesday, December 19th. The shipping service provider reported $3.18 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $2.89 by $0.29. FedEx had a net margin of 4.74% and a return on equity of 20.91%. The firm had revenue of $16.30 billion during the quarter, compared to the consensus estimate of $15.67 billion. During the same quarter last year, the firm earned $2.80 EPS. The firm’s revenue for the quarter was up 9.4% on a year-over-year basis. analysts anticipate that FedEx Co. will post 12.47 earnings per share for the current year.
The business also recently announced a quarterly dividend, which will be paid on Tuesday, January 2nd. Investors of record on Monday, December 11th will be issued a $0.50 dividend. The ex-dividend date is Friday, December 8th. This represents a $2.00 annualized dividend and a yield of 0.80%. FedEx’s dividend payout ratio (DPR) is presently 18.43%.
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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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