FedEx (NYSE:FDX) Shares Break Above 50 Day Moving Average – What’s Next?

FedEx Corporation (NYSE:FDX) passed above its 50-day moving average during trading on Tuesday. The stock has a 50-day moving average of $305.43 and traded as high as $307.94. FedEx shares last traded at $307.4360, with a volume of 1,701,357 shares trading hands.

FedEx News Roundup

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: FedEx appointed Jamere Jackson as executive vice president and CFO, effective November 30. Jackson previously held senior finance roles at AutoZone, Hertz and Nielsen, and his experience could support tighter cost control, disciplined capital allocation and increased shareholder returns following the FedEx Freight spinoff. FedEx Names Jamere Jackson as Executive Vice President and Chief Financial Officer
• Positive Sentiment: Analysts highlighted potential valuation support, with some estimates describing FDX as materially undervalued based on its expected cash-generation potential. FedEx also retains more cash-flow flexibility for dividends, buybacks and investment than UPS, which may appeal to income-oriented investors. Want Safer Package Delivery Income? FedEx Pays a Smaller Yield but Keeps Far More Cash
• Neutral Sentiment: UPS reported a third-quarter beat and raised its full-year outlook, lifting the broader delivery sector. The read-through was modestly favorable for FedEx, but UPS’s stronger reaction shows investors currently prefer its earnings and guidance profile. UPS Rises 5% as Q3 Beat Lifts Full-Year Outlook; FedEx Inches Higher
• Negative Sentiment: Investors are looking ahead to FedEx’s third-quarter results, with wage inflation, pilot-contract expenses and stranded costs from the Freight separation expected to pressure margins. Transformation savings may offset some of these expenses, but earnings execution remains a key near-term risk. FedEx Gears Up for Q3 Earnings: What’s in Store for the Stock?
• Negative Sentiment: FedEx underperformed other transportation stocks despite posting a gain, suggesting investors remain cautious about its margin outlook and the uncertain performance of the newly separated freight business.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on FDX shares. JPMorgan Chase & Co. dropped their target price on shares of FedEx from $400.00 to $399.00 and set an “overweight” rating for the company in a report on Monday, October 5th. Wall Street Zen raised FedEx to a “hold” rating in a research note on Saturday, August 8th. Weiss Ratings cut FedEx from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, September 2nd. Citigroup reaffirmed a “cautious” rating on shares of FedEx in a research note on Wednesday, October 7th. Finally, Evercore raised their price objective on FedEx from $350.00 to $351.00 in a research note on Monday, September 28th. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, FedEx has a consensus rating of “Moderate Buy” and an average price target of $362.60.

FedEx Stock Up 2.3%

The firm’s 50-day moving average is $305.43 and its 200 day moving average is $337.18.

FedEx Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Monday, September 14th were given a dividend of $1.22 per share. The ex-dividend date was Monday, September 14th. This represents a $4.88 dividend on an annualized basis and a yield of 1.6%.

Hedge Funds Weigh In On FedEx

Hedge funds have recently bought and sold shares of the stock. BOKF NA lifted its position in shares of FedEx by 12.1% in the third quarter. BOKF NA now owns 20,212 shares of the shipping service provider’s stock valued at $5,762,000 after acquiring an additional 2,181 shares in the last quarter. Motley Fool Asset Management LLC grew its holdings in FedEx by 0.3% in the third quarter. Motley Fool Asset Management LLC now owns 20,584 shares of the shipping service provider’s stock valued at $5,868,000 after purchasing an additional 54 shares during the period. DecisionPoint Financial LLC raised its position in shares of FedEx by 44.5% in the 3rd quarter. DecisionPoint Financial LLC now owns 211 shares of the shipping service provider’s stock worth $61,000 after buying an additional 65 shares during the period. Laurel Wealth Advisors LLC purchased a new position in shares of FedEx in the 3rd quarter worth about $103,000. Finally, Convergence Financial LLC purchased a new stake in FedEx during the third quarter worth approximately $751,000. Hedge funds and other institutional investors own 84.47% of the company’s stock.

FedEx Company Profile

FedEx Corporation (NYSE: FDX) is a global transportation, e-commerce and business services company headquartered in Memphis, Tennessee. Through its operating companies, FedEx provides time-definite express delivery, ground shipping, freight transportation, customs brokerage, logistics and supply chain services for businesses, governments and consumers.

The company’s services include domestic and international package delivery, less-than-truckload freight transportation, warehousing, fulfillment, supply chain management and specialized logistics solutions.