FedEx (NYSE:FDX) Shares Gap Down on Disappointing Earnings

FedEx Co. (NYSE:FDX)’s stock price gapped down before the market opened on Friday following a dissappointing earnings announcement. The stock had previously closed at $300.39, but opened at $260.78. FedEx shares last traded at $256.25, with a volume of 3,381,626 shares traded.

The shipping service provider reported $3.60 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.82 by ($1.22). FedEx had a return on equity of 16.70% and a net margin of 4.94%. The business had revenue of $21.58 billion for the quarter, compared to analysts’ expectations of $21.87 billion. During the same quarter in the prior year, the business posted $4.55 EPS. The business’s revenue for the quarter was down .5% compared to the same quarter last year.

FedEx Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, October 1st. Investors of record on Monday, September 9th will be paid a dividend of $1.38 per share. This represents a $5.52 dividend on an annualized basis and a yield of 2.17%. The ex-dividend date of this dividend is Monday, September 9th. FedEx’s payout ratio is presently 32.04%.

Wall Street Analyst Weigh In

A number of research firms have issued reports on FDX. Wells Fargo & Company lifted their price objective on FedEx from $275.00 to $300.00 and gave the stock an “equal weight” rating in a research note on Wednesday, June 26th. Robert W. Baird dropped their target price on FedEx from $340.00 to $320.00 and set an “outperform” rating for the company in a report on Friday. UBS Group decreased their price target on FedEx from $333.00 to $311.00 and set a “buy” rating on the stock in a report on Friday. Morgan Stanley downgraded FedEx from an “equal weight” rating to an “underweight” rating and lowered their price target for the stock from $215.00 to $200.00 in a research report on Friday. Finally, BMO Capital Markets cut their price target on shares of FedEx from $325.00 to $300.00 and set a “market perform” rating on the stock in a report on Friday. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating and seventeen have assigned a buy rating to the company. Based on data from MarketBeat.com, FedEx has a consensus rating of “Moderate Buy” and a consensus target price of $313.38.

Insider Buying and Selling at FedEx

In related news, EVP Brie Carere sold 1,958 shares of the business’s stock in a transaction that occurred on Thursday, July 18th. The shares were sold at an average price of $310.43, for a total transaction of $607,821.94. Following the completion of the transaction, the executive vice president now owns 19,937 shares in the company, valued at approximately $6,189,042.91. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. In other FedEx news, EVP Robert B. Carter sold 16,010 shares of the firm’s stock in a transaction dated Friday, June 28th. The stock was sold at an average price of $294.48, for a total value of $4,714,624.80. Following the completion of the sale, the executive vice president now owns 59,884 shares of the company’s stock, valued at $17,634,640.32. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, EVP Brie Carere sold 1,958 shares of the business’s stock in a transaction that occurred on Thursday, July 18th. The stock was sold at an average price of $310.43, for a total transaction of $607,821.94. Following the sale, the executive vice president now directly owns 19,937 shares in the company, valued at approximately $6,189,042.91. The disclosure for this sale can be found here. Insiders have sold 32,944 shares of company stock worth $9,882,355 over the last quarter. Insiders own 8.73% of the company’s stock.

Institutional Trading of FedEx

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Scarborough Advisors LLC acquired a new stake in FedEx during the 4th quarter valued at approximately $25,000. Fortis Group Advisors LLC raised its stake in shares of FedEx by 100.0% during the 4th quarter. Fortis Group Advisors LLC now owns 100 shares of the shipping service provider’s stock valued at $25,000 after buying an additional 50 shares during the last quarter. Central Valley Advisors LLC acquired a new position in shares of FedEx in the 2nd quarter valued at about $39,000. Abound Wealth Management boosted its stake in shares of FedEx by 175.9% in the second quarter. Abound Wealth Management now owns 149 shares of the shipping service provider’s stock worth $45,000 after buying an additional 95 shares during the last quarter. Finally, Sachetta LLC grew its holdings in FedEx by 29.1% during the second quarter. Sachetta LLC now owns 164 shares of the shipping service provider’s stock worth $49,000 after acquiring an additional 37 shares during the period. Institutional investors and hedge funds own 84.47% of the company’s stock.

FedEx Stock Performance

The company has a market capitalization of $62.66 billion, a PE ratio of 14.78, a PEG ratio of 1.03 and a beta of 1.17. The firm has a 50-day moving average of $292.43 and a two-hundred day moving average of $275.04. The company has a quick ratio of 1.32, a current ratio of 1.36 and a debt-to-equity ratio of 0.73.

FedEx Company Profile

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates through FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services segments. The FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; and time-critical transportation services.