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

FedEx Co. (NYSE:FDX)’s stock price gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $236.67, but opened at $261.00. FedEx shares last traded at $253.50, with a volume of 240,666 shares.

The shipping service provider reported $4.87 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $2.69 by $2.18. The company had revenue of $19.32 billion during the quarter, compared to the consensus estimate of $17.56 billion. FedEx had a return on equity of 13.49% and a net margin of 1.86%. The firm’s revenue was up 13.3% on a year-over-year basis. During the same period in the previous year, the company posted $3.05 EPS.

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Friday, September 4th will be paid a dividend of $0.65 per share. The ex-dividend date is Thursday, September 3rd. This represents a $2.60 dividend on an annualized basis and a dividend yield of 1.03%. FedEx’s dividend payout ratio (DPR) is presently 27.37%.

FDX has been the subject of a number of recent research reports. Argus upgraded FedEx from a “hold” rating to a “buy” rating and set a $185.00 price objective for the company in a research note on Monday, July 6th. Stephens boosted their price target on FedEx from $215.00 to $260.00 and gave the stock an “overweight” rating in a report on Thursday, September 10th. Deutsche Bank boosted their price target on FedEx from $128.00 to $150.00 and gave the stock a “hold” rating in a report on Thursday, July 2nd. Citigroup upped their price objective on FedEx from $260.00 to $300.00 and gave the stock a “buy” rating in a report on Wednesday. Finally, UBS Group upped their price objective on FedEx from $218.00 to $320.00 and gave the stock a “buy” rating in a report on Wednesday. One research analyst has rated the stock with a sell rating, eleven have given a hold rating, eighteen have given a buy rating and one has given a strong buy rating to the stock. FedEx has an average rating of “Buy” and an average price target of $241.69.

In other news, Director Susan C. Schwab sold 10,570 shares of the stock in a transaction on Monday, July 6th. The stock was sold at an average price of $155.58, for a total transaction of $1,644,480.60. Following the transaction, the director now owns 16,600 shares of the company’s stock, valued at approximately $2,582,628. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Henry J. Maier sold 8,750 shares of the stock in a transaction on Thursday, July 16th. The stock was sold at an average price of $166.48, for a total value of $1,456,700.00. Following the transaction, the chief executive officer now directly owns 49,417 shares in the company, valued at approximately $8,226,942.16. The disclosure for this sale can be found here. Insiders sold a total of 44,058 shares of company stock worth $7,149,678 in the last ninety days. 8.49% of the stock is currently owned by corporate insiders.

Institutional investors and hedge funds have recently bought and sold shares of the company. Selective Wealth Management Inc. bought a new position in shares of FedEx during the 2nd quarter worth $28,000. Hoover Financial Advisors Inc. bought a new position in shares of FedEx during the 2nd quarter worth $28,000. NewSquare Capital LLC grew its position in shares of FedEx by 215.4% during the 1st quarter. NewSquare Capital LLC now owns 205 shares of the shipping service provider’s stock worth $25,000 after buying an additional 140 shares in the last quarter. Truvestments Capital LLC bought a new position in shares of FedEx during the 1st quarter worth $27,000. Finally, Balentine LLC bought a new position in shares of FedEx during the 1st quarter worth $29,000. 71.65% of the stock is currently owned by institutional investors and hedge funds.

The business has a 50-day moving average of $204.74 and a two-hundred day moving average of $148.86. The company has a market cap of $62.01 billion, a P/E ratio of 52.25, a P/E/G ratio of 1.84 and a beta of 1.48. The company has a debt-to-equity ratio of 1.20, a current ratio of 1.58 and a quick ratio of 1.53.

FedEx Company Profile (NYSE:FDX)

FedEx Corporation provides transportation, e-commerce, and business services worldwide. The company's FedEx Express segment offers shipping services for delivery of packages and freight. Its FedEx Ground segment provides business and residential money-back guaranteed ground package delivery services; and consolidates and delivers low-weight and less time-sensitive business-to-consumer packages.

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