FedEx (NYSE:FDX) Shares Gap Up on Strong Earnings

FedEx Co. (NYSE:FDX) gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $275.88, but opened at $294.00. FedEx shares last traded at $284.18, with a volume of 1,317,551 shares trading hands.

The shipping service provider reported $4.05 earnings per share for the quarter, topping the consensus estimate of $3.88 by $0.17. FedEx had a return on equity of 15.61% and a net margin of 4.62%. The company had revenue of $22 billion for the quarter, compared to analysts’ expectations of $22.14 billion. During the same period in the prior year, the firm earned $3.99 earnings per share. The firm’s revenue for the quarter was down .7% on a year-over-year basis.

FedEx Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, January 3rd. Stockholders of record on Monday, December 9th will be paid a $1.38 dividend. This represents a $5.52 annualized dividend and a dividend yield of 1.99%. The ex-dividend date of this dividend is Monday, December 9th. FedEx’s dividend payout ratio is currently 34.05%.

Wall Street Analyst Weigh In

A number of research firms have weighed in on FDX. Morgan Stanley downgraded FedEx from an “equal weight” rating to an “underweight” rating and lowered their target price for the company from $215.00 to $200.00 in a report on Friday, September 20th. BMO Capital Markets decreased their price target on FedEx from $325.00 to $300.00 and set a “market perform” rating on the stock in a report on Friday, September 20th. Loop Capital upgraded shares of FedEx from a “hold” rating to a “buy” rating and lifted their price objective for the company from $288.00 to $365.00 in a research report on Friday. Sanford C. Bernstein cut shares of FedEx from an “outperform” rating to a “market perform” rating and reduced their price target for the stock from $337.00 to $316.00 in a research report on Tuesday, December 3rd. Finally, The Goldman Sachs Group decreased their target price on FedEx from $333.00 to $332.00 in a research report on Friday, September 20th. Two equities research analysts have rated the stock with a sell rating, nine have given a hold rating and eighteen have issued a buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $322.48.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of FDX. Evermay Wealth Management LLC increased its holdings in shares of FedEx by 72.7% in the 3rd quarter. Evermay Wealth Management LLC now owns 95 shares of the shipping service provider’s stock valued at $26,000 after purchasing an additional 40 shares during the period. Highline Wealth Partners LLC acquired a new position in FedEx in the 3rd quarter valued at approximately $31,000. Abound Wealth Management lifted its position in FedEx by 175.9% in the 2nd quarter. Abound Wealth Management now owns 149 shares of the shipping service provider’s stock worth $45,000 after buying an additional 95 shares in the last quarter. Sachetta LLC increased its stake in shares of FedEx by 29.1% in 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 last quarter. Finally, Harbor Capital Advisors Inc. bought a new position in FedEx during the third quarter valued at approximately $47,000. Institutional investors own 84.47% of the company’s stock.

FedEx Stock Up 0.6 %

The business has a 50-day simple moving average of $282.48 and a two-hundred day simple moving average of $281.66. The company has a quick ratio of 1.24, a current ratio of 1.28 and a debt-to-equity ratio of 0.72. The company has a market cap of $67.79 billion, a price-to-earnings ratio of 17.12, a PEG ratio of 1.17 and a beta of 1.18.

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.