FedEx (NYSE:FDX) Shares Gap Down After Earnings Miss

FedEx Co. (NYSE:FDX) shares gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $300.39, but opened at $260.78. FedEx shares last traded at $256.25, with a volume of 3,381,626 shares.

The shipping service provider reported $3.60 earnings per share for the quarter, missing analysts’ consensus estimates of $4.82 by ($1.22). FedEx had a net margin of 4.94% and a return on equity of 16.70%. The company had revenue of $21.58 billion during the quarter, compared to the consensus estimate of $21.87 billion. During the same quarter in the prior year, the business earned $4.55 earnings per share. The firm’s revenue for the quarter was down .5% compared to the same quarter last year.

FedEx Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, October 1st. Shareholders of record on Monday, September 9th will be given a dividend of $1.38 per share. This represents a $5.52 annualized dividend and a yield of 2.17%. The ex-dividend date of this dividend is Monday, September 9th. FedEx’s dividend payout ratio (DPR) is currently 32.04%.

Analyst Ratings Changes

FDX has been the topic of several recent analyst reports. Robert W. Baird lowered their price objective on shares of FedEx from $340.00 to $320.00 and set an “outperform” rating on the stock in a research note on Friday. The Goldman Sachs Group lowered their price target on FedEx from $333.00 to $332.00 in a research report on Friday. Stifel Nicolaus cut their price objective on FedEx from $327.00 to $321.00 and set a “buy” rating for the company in a research report on Friday. Argus boosted their target price on FedEx from $325.00 to $335.00 and gave the stock a “buy” rating in a report on Thursday, June 27th. Finally, JPMorgan Chase & Co. cut their price target on FedEx from $359.00 to $350.00 and set an “overweight” rating for the company in a report on Friday. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating and eighteen have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $312.84.

Insider Activity

In other news, EVP Robert B. Carter sold 16,010 shares of FedEx stock in a transaction dated Friday, June 28th. The stock was sold at an average price of $294.48, for a total transaction of $4,714,624.80. Following the sale, the executive vice president now directly owns 59,884 shares of the company’s stock, valued at $17,634,640.32. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. In other news, EVP Robert B. Carter sold 16,010 shares of the firm’s stock in a transaction on Friday, June 28th. The shares were sold at an average price of $294.48, for a total transaction of $4,714,624.80. Following the completion of the transaction, the executive vice president now owns 59,884 shares of the company’s stock, valued at $17,634,640.32. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Sriram Krishnasamy sold 8,421 shares of the business’s stock in a transaction on Wednesday, July 17th. The stock was sold at an average price of $310.14, for a total transaction of $2,611,688.94. Following the completion of the sale, the chief executive officer now directly owns 12,246 shares in the company, valued at approximately $3,797,974.44. The disclosure for this sale can be found here. In the last ninety days, insiders sold 32,944 shares of company stock worth $9,882,355. Insiders own 8.73% of the company’s stock.

Hedge Funds Weigh In On FedEx

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Newbridge Financial Services Group Inc. increased its position in FedEx by 93.7% during the 2nd quarter. Newbridge Financial Services Group Inc. now owns 5,741 shares of the shipping service provider’s stock valued at $1,721,000 after purchasing an additional 2,777 shares during the period. Sanctuary Advisors LLC acquired a new stake in shares of FedEx during the second quarter worth $10,018,000. Clearbridge Investments LLC raised its stake in FedEx by 63.9% during the second quarter. Clearbridge Investments LLC now owns 7,917 shares of the shipping service provider’s stock worth $2,374,000 after buying an additional 3,087 shares during the last quarter. New Century Financial Group LLC lifted its holdings in FedEx by 148.7% in the second quarter. New Century Financial Group LLC now owns 5,293 shares of the shipping service provider’s stock valued at $1,587,000 after buying an additional 3,165 shares during the period. Finally, Ariadne Wealth Management LP bought a new stake in FedEx during the second quarter valued at $103,000. 84.47% of the stock is owned by institutional investors and hedge funds.

FedEx Stock Performance

The stock has a fifty day simple moving average of $292.43 and a two-hundred day simple moving average of $274.85. The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.32 and a current ratio of 1.36. The stock has a market capitalization of $62.66 billion, a price-to-earnings ratio of 14.78, a P/E/G ratio of 1.03 and a beta of 1.17.

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.