Investors Sell Shares of FedEx Corporation (FDX) on Strength After Earnings Miss
Traders sold shares of FedEx Corporation (NYSE:FDX) on strength during trading on Wednesday following a weaker than expected earnings announcement. $234.18 million flowed into the stock on the tick-up and $282.26 million flowed out of the stock on the tick-down, for a money net flow of $48.08 million out of the stock. Of all equities tracked, FedEx Corporation had the 0th highest net out-flow for the day. FedEx Corporation traded up $4.50 for the day and closed at $220.50The shipping service provider reported $2.51 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $3.17 by ($0.66). The company had revenue of $15.30 billion for the quarter, compared to analysts’ expectations of $15.35 billion. FedEx Corporation had a net margin of 4.72% and a return on equity of 21.15%. The firm’s revenue was up 4.1% on a year-over-year basis. During the same period in the prior year, the company earned $2.90 earnings per share.
The business also recently disclosed a quarterly dividend, which will be paid on Monday, October 2nd. Shareholders of record on Monday, September 11th will be paid a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 0.91%. The ex-dividend date of this dividend is Friday, September 8th. FedEx Corporation’s dividend payout ratio is presently 18.87%.
Several analysts have commented on the company. Wells Fargo & Company upped their price objective on FedEx Corporation from $235.00 to $240.00 and gave the company an “outperform” rating in a research note on Thursday. Bank of America Corporation reaffirmed a “buy” rating and set a $240.00 price objective on shares of FedEx Corporation in a research note on Wednesday. Stifel Nicolaus reaffirmed a “hold” rating and set a $221.00 price objective (up from $216.00) on shares of FedEx Corporation in a research note on Wednesday. Oppenheimer Holdings, Inc. reaffirmed a “buy” rating and set a $229.00 price objective on shares of FedEx Corporation in a research note on Wednesday. Finally, Sanford C. Bernstein set a $212.00 price objective on FedEx Corporation and gave the company a “neutral” rating in a research note on Wednesday. Two investment analysts have rated the stock with a sell rating, five have issued a hold rating and twenty-one have given a buy rating to the stock. FedEx Corporation has an average rating of “Buy” and an average target price of $225.26.
In related news, Director John A. Edwardson sold 2,208 shares of the stock in a transaction on Monday, July 31st. The stock was sold at an average price of $208.14, for a total value of $459,573.12. Following the transaction, the director now directly owns 30,608 shares of the company’s stock, valued at approximately $6,370,749.12. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Kim Jabal sold 609 shares of the stock in a transaction on Thursday, June 29th. The stock was sold at an average price of $216.13, for a total value of $131,623.17. Following the completion of the transaction, the director now directly owns 2,100 shares in the company, valued at $453,873. The disclosure for this sale can be found here. Company insiders own 8.45% of the company’s stock.
Several institutional investors and hedge funds have recently modified their holdings of the stock. Paulson & CO. Inc. raised its position in shares of FedEx Corporation by 52.3% in the 2nd quarter. Paulson & CO. Inc. now owns 75,400 shares of the shipping service provider’s stock worth $16,387,000 after buying an additional 25,900 shares during the period. Perigon Wealth Management LLC raised its position in shares of FedEx Corporation by 6.7% in the 2nd quarter. Perigon Wealth Management LLC now owns 18,118 shares of the shipping service provider’s stock worth $3,947,000 after buying an additional 1,135 shares during the period. Intl Fcstone Inc. purchased a new position in shares of FedEx Corporation in the 2nd quarter worth $320,000. M Holdings Securities Inc. purchased a new position in shares of FedEx Corporation in the 2nd quarter worth $226,000. Finally, RNC Capital Management LLC raised its position in shares of FedEx Corporation by 0.8% in the 2nd quarter. RNC Capital Management LLC now owns 1,996 shares of the shipping service provider’s stock worth $434,000 after buying an additional 15 shares during the period. 75.84% of the stock is currently owned by institutional investors and hedge funds.
The stock has a market cap of $58.70 billion, a price-to-earnings ratio of 19.77 and a beta of 1.28. The firm has a 50-day moving average of $210.17 and a 200 day moving average of $202.36. FedEx Corporation also was the target of some unusual options trading activity on Wednesday. Stock traders purchased 15,812 put options on the stock. This is an increase of approximately 524% compared to the typical volume of 2,532 put options.
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About FedEx Corporation
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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