Primecap Management Co. CA Invests $2.55 Billion in FedEx Corporation $FDX

Primecap Management Co. CA bought a new stake in FedEx Corporation (NYSE:FDX) in the second quarter, HoldingsChannel reports. The fund bought 8,156,799 shares of the shipping service provider’s stock, valued at approximately $2,554,138,000. FedEx makes up approximately 1.5% of Primecap Management Co. CA’s investment portfolio, making the stock its 13th biggest position.

Other hedge funds have also modified their holdings of the company. Canada Pension Plan Investment Board acquired a new position in FedEx during the 2nd quarter worth approximately $283,792,000. Castleark Management LLC acquired a new stake in FedEx in the second quarter valued at approximately $313,000. Legal & General Group Plc acquired a new stake in FedEx in the second quarter valued at approximately $448,121,000. The Manufacturers Life Insurance Company purchased a new stake in shares of FedEx during the second quarter valued at approximately $78,560,000. Finally, Veratis Advisors Inc. purchased a new stake in shares of FedEx during the second quarter valued at approximately $600,000. 84.47% of the stock is currently owned by hedge funds and other institutional investors.

FedEx Stock Down 0.2%

FDX stock opened at $333.54 on Wednesday. The company has a current ratio of 1.48, a quick ratio of 1.44 and a debt-to-equity ratio of 0.74. The firm has a 50 day simple moving average of $318.91 and a 200-day simple moving average of $351.31. The company has a market capitalization of $78.94 billion, a P/E ratio of 18.02, a PEG ratio of 1.72 and a beta of 1.30. FedEx Corporation has a twelve month low of $177.05 and a twelve month high of $345.36.

FedEx (NYSE:FDX) last posted its quarterly earnings results on Tuesday, July 21st. The shipping service provider reported $5.88 earnings per share (EPS) for the quarter. FedEx had a net margin of 4.68% and a return on equity of 16.49%. The firm had revenue of $23.26 billion for the quarter. On average, equities research analysts predict that FedEx Corporation will post 17.6 earnings per share for the current fiscal year.

FedEx Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Monday, September 14th will be paid a $1.22 dividend. This represents a $4.88 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date is Monday, September 14th. FedEx’s dividend payout ratio is 26.36%.

Insider Activity at FedEx

In other news, Director Paul S. Walsh sold 5,042 shares of the stock in a transaction dated Tuesday, June 30th. The shares were sold at an average price of $324.56, for a total transaction of $1,636,431.52. Following the transaction, the director owned 16,359 shares of the company’s stock, valued at approximately $5,309,477.04. This trade represents a 23.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.65% of the company’s stock.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. BNP Paribas Exane decreased their target price on shares of FedEx from $335.00 to $269.76 and set a “neutral” rating for the company in a research note on Tuesday, June 2nd. Jefferies Financial Group assumed coverage on shares of FedEx in a research note on Tuesday, June 23rd. They set a “buy” rating and a $200.00 price target on the stock. Citigroup started coverage on shares of FedEx in a report on Wednesday, July 15th. They issued an “outperform” rating on the stock. Weiss Ratings raised shares of FedEx from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Tuesday, August 18th. Finally, Truist Financial lowered their target price on FedEx from $425.00 to $365.00 and set a “buy” rating for the company in a research note on Thursday, June 25th. One research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, nine have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $350.54.

About FedEx

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.