FedEx (NYSE:FDX) Hits New 1-Year Low on Disappointing Earnings

FedEx Co. (NYSE:FDX)’s stock price hit a new 52-week low on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $217.22 and last traded at $220.35, with a volume of 2202379 shares. The stock had previously closed at $246.21.

The shipping service provider reported $4.51 EPS for the quarter, missing the consensus estimate of $4.56 by ($0.05). The business had revenue of $22.16 billion for the quarter, compared to analyst estimates of $21.96 billion. FedEx had a return on equity of 15.59% and a net margin of 4.45%. The business’s quarterly revenue was up 1.9% compared to the same quarter last year. During the same period in the previous year, the business posted $3.86 EPS.

FedEx Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, April 1st. Shareholders of record on Monday, March 10th will be paid a $1.38 dividend. This represents a $5.52 annualized dividend and a dividend yield of 2.40%. The ex-dividend date is Monday, March 10th. FedEx’s dividend payout ratio is 35.18%.

Analyst Upgrades and Downgrades

FDX has been the subject of several analyst reports. BMO Capital Markets decreased their price objective on FedEx from $330.00 to $275.00 and set a “market perform” rating for the company in a report on Friday. UBS Group lowered their price objective on shares of FedEx from $350.00 to $331.00 and set a “buy” rating for the company in a research report on Friday. Raymond James decreased their target price on shares of FedEx from $320.00 to $290.00 and set an “outperform” rating on the stock in a research note on Friday. Barclays reduced their price objective on shares of FedEx from $365.00 to $350.00 and set an “overweight” rating on the stock in a research note on Friday. Finally, Sanford C. Bernstein cut shares of FedEx from an “outperform” rating to a “market perform” rating and cut their price target for the company from $337.00 to $316.00 in a research report on Tuesday, December 3rd. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating, eighteen have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $301.60.

Insider Transactions at FedEx

In other news, EVP John W. Dietrich purchased 1,000 shares of FedEx stock in a transaction dated Tuesday, January 7th. The stock was purchased at an average cost of $273.98 per share, for a total transaction of $273,980.00. Following the transaction, the executive vice president now directly owns 9,067 shares of the company’s stock, valued at approximately $2,484,176.66. This trade represents a 12.40 % increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Amy B. Lane acquired 333 shares of the company’s stock in a transaction dated Thursday, December 26th. The shares were bought at an average cost of $276.06 per share, with a total value of $91,927.98. Following the completion of the acquisition, the director now directly owns 333 shares in the company, valued at $91,927.98. The trade was a ∞ increase in their position. The disclosure for this purchase can be found here. 8.87% of the stock is currently owned by company insiders.

Institutional Trading of FedEx

A number of hedge funds have recently made changes to their positions in the stock. Fortitude Family Office LLC lifted its stake in FedEx by 144.4% in the fourth quarter. Fortitude Family Office LLC now owns 88 shares of the shipping service provider’s stock worth $25,000 after purchasing an additional 52 shares during the last quarter. Transce3nd LLC purchased a new position in shares of FedEx during the fourth quarter valued at about $26,000. Peoples Financial Services CORP. purchased a new position in shares of FedEx during the fourth quarter valued at about $28,000. City Holding Co. purchased a new stake in FedEx in the fourth quarter worth about $28,000. Finally, Kentucky Trust Co purchased a new stake in FedEx in the fourth quarter worth about $28,000. 84.47% of the stock is owned by institutional investors.

FedEx Trading Down 6.5 %

The stock’s fifty day simple moving average is $259.95 and its two-hundred day simple moving average is $272.64. The firm has a market cap of $55.46 billion, a PE ratio of 14.68, a PEG ratio of 1.11 and a beta of 1.23. The company has a quick ratio of 1.19, a current ratio of 1.23 and a debt-to-equity ratio of 0.73.

About FedEx

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.