FedEx (NYSE:FDX) Shares Gap Up After Better-Than-Expected Earnings

FedEx Co. (NYSE:FDX – Get Rating)’s share price gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $204.05, but opened at $226.05. FedEx shares last traded at $221.99, with a volume of 2,598,131 shares changing hands.

The shipping service provider reported $3.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.67 by $0.74. The business had revenue of $22.17 billion during the quarter, compared to the consensus estimate of $22.74 billion. FedEx had a net margin of 3.54% and a return on equity of 19.17%. The firm’s quarterly revenue was down 6.2% compared to the same quarter last year. During the same quarter last year, the firm earned $4.59 earnings per share.

FedEx Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, April 3rd. Stockholders of record on Monday, March 13th will be paid a dividend of $1.15 per share. This represents a $4.60 annualized dividend and a dividend yield of 2.09%. The ex-dividend date of this dividend is Friday, March 10th. FedEx’s dividend payout ratio is presently 36.14%.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on FDX. Wells Fargo & Company lifted their price target on shares of FedEx from $225.00 to $240.00 and gave the company an “equal weight” rating in a research note on Friday. Citigroup lifted their price target on shares of FedEx from $250.00 to $275.00 and gave the company a “buy” rating in a research note on Friday. Morgan Stanley lifted their price target on shares of FedEx from $130.00 to $145.00 and gave the company an “equal weight” rating in a research note on Monday, January 9th. Robert W. Baird lifted their price target on shares of FedEx from $230.00 to $250.00 in a research note on Friday. Finally, Susquehanna lifted their price objective on shares of FedEx from $170.00 to $225.00 in a report on Friday. Ten analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $230.75.

Insider Buying and Selling at FedEx

In related news, Director Amy B. Lane bought 280 shares of the company’s stock in a transaction that occurred on Tuesday, January 3rd. The shares were purchased at an average cost of $175.83 per share, with a total value of $49,232.40. Following the transaction, the director now directly owns 1,529 shares of the company’s stock, valued at approximately $268,844.07. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Insiders own 8.62% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of FDX. Coston McIsaac & Partners acquired a new stake in FedEx during the 2nd quarter worth $30,000. Lakewood Asset Management LLC acquired a new stake in shares of FedEx in the 4th quarter worth $26,000. Global Wealth Management Investment Advisory Inc. acquired a new stake in shares of FedEx in the 1st quarter worth $35,000. CenterStar Asset Management LLC acquired a new stake in shares of FedEx in the 4th quarter worth $29,000. Finally, My Personal CFO LLC acquired a new stake in shares of FedEx in the 4th quarter worth $31,000. 72.02% of the stock is owned by hedge funds and other institutional investors.

FedEx Price Performance

The company has a market cap of $55.61 billion, a price-to-earnings ratio of 17.31, a PEG ratio of 1.20 and a beta of 1.31. The company has a current ratio of 1.30, a quick ratio of 1.25 and a debt-to-equity ratio of 0.83. The company’s 50 day moving average price is $201.14 and its 200 day moving average price is $181.41.

FedEx Company Profile

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FedEx Corp. provides a broad portfolio of transportation, e-commerce and business services under the FedEx brand. It operates through the following segments: FedEx Express, FedEx Ground, FedEx Freight, FedEx Services, and Corporate, Other & Eliminations. The FedEx Express segment consists of domestic and international shipping services for delivery of packages and freight.