FedEx (NYSE:FDX) Sets New 52-Week Low After Earnings Miss

FedEx Co. (NYSE:FDX)’s stock price hit a new 52-week low during trading on Friday following a dissappointing earnings announcement. The company traded as low as $217.22 and last traded at $220.35, with a volume of 2202379 shares trading hands. The stock had previously closed at $246.21.

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

FedEx Announces Dividend

The business 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 dividend of $1.38 per share. The ex-dividend date of this dividend is Monday, March 10th. This represents a $5.52 dividend on an annualized basis and a yield of 2.47%. FedEx’s payout ratio is 35.18%.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the stock. BNP Paribas upgraded shares of FedEx from a “strong sell” rating to a “strong-buy” rating in a research note on Thursday, January 16th. Deutsche Bank Aktiengesellschaft initiated coverage on shares of FedEx in a report on Friday, March 7th. They issued a “buy” rating and a $337.00 price objective on the stock. Citigroup dropped their price objective on shares of FedEx from $347.00 to $317.00 and set a “buy” rating on the stock in a report on Tuesday. TD Cowen dropped their price objective on shares of FedEx from $337.00 to $310.00 and set a “buy” rating on the stock in a report on Friday. Finally, Stifel Nicolaus dropped their price objective on shares of FedEx from $364.00 to $354.00 and set a “buy” rating on the stock in a report on Friday. Two equities research analysts have rated the stock with a sell rating, nine have given a hold rating, eighteen have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $304.68.

Insider Activity at FedEx

In other news, Director Susan C. Schwab sold 3,980 shares of FedEx stock in a transaction dated Tuesday, January 14th. The stock was sold at an average price of $276.45, for a total transaction of $1,100,271.00. Following the sale, the director now owns 8,904 shares in the company, valued at approximately $2,461,510.80. The trade was a 30.89 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Richard W. Smith sold 2,576 shares of FedEx stock in a transaction dated Tuesday, January 7th. The stock was sold at an average price of $276.93, for a total value of $713,371.68. Following the sale, the chief executive officer now owns 111,886 shares in the company, valued at $30,984,589.98. This trade represents a 2.25 % decrease in their position. The disclosure for this sale can be found here. 8.87% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On FedEx

Several institutional investors have recently added to or reduced their stakes in FDX. Fortitude Family Office LLC increased its position in FedEx by 144.4% in the 4th quarter. Fortitude Family Office LLC now owns 88 shares of the shipping service provider’s stock valued at $25,000 after acquiring an additional 52 shares during the period. Transce3nd LLC acquired a new position in FedEx during the fourth quarter worth $26,000. Peoples Financial Services CORP. acquired a new position in FedEx during the fourth quarter worth $28,000. City Holding Co. purchased a new position in FedEx in the fourth quarter worth $28,000. Finally, Kentucky Trust Co acquired a new stake in FedEx in the fourth quarter valued at $28,000. Institutional investors and hedge funds own 84.47% of the company’s stock.

FedEx Stock Down 9.4 %

The firm’s 50-day simple moving average is $260.76 and its 200 day simple moving average is $273.11. The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.19 and a current ratio of 1.23. The company has a market capitalization of $53.74 billion, a PE ratio of 14.20, a price-to-earnings-growth ratio of 1.11 and a beta of 1.23.

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.