FedEx (NYSE:FDX) Sets New 52-Week Low Following Weak Earnings

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

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

FedEx Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, April 1st. Investors 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 payout ratio is 35.18%.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the company. Deutsche Bank Aktiengesellschaft assumed coverage on FedEx in a research report on Friday, March 7th. They issued a “buy” rating and a $337.00 price objective on the stock. Bank of America dropped their price target on shares of FedEx from $295.00 to $272.00 and set a “buy” rating on the stock in a report on Friday. UBS Group decreased their price objective on shares of FedEx from $350.00 to $331.00 and set a “buy” rating for the company in a report on Friday. BNP Paribas raised shares of FedEx from a “strong sell” rating to a “strong-buy” rating in a research report on Thursday, January 16th. Finally, BMO Capital Markets lowered their price target on FedEx from $330.00 to $275.00 and set a “market perform” rating on the stock in a report on Friday. Two analysts have rated the stock with a sell rating, eight have given a hold rating, eighteen have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, FedEx currently has an average rating of “Moderate Buy” and an average target price of $301.67.

Insider Buying and Selling at FedEx

In other FedEx news, Director Susan C. Schwab sold 3,980 shares of the stock in a transaction that occurred on Tuesday, January 14th. The shares were sold at an average price of $276.45, for a total transaction of $1,100,271.00. Following the completion of the sale, the director now directly owns 8,904 shares of the company’s stock, valued at $2,461,510.80. This trade represents a 30.89 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Richard W. Smith sold 2,576 shares of the business’s stock in a transaction on Tuesday, January 7th. The stock was sold at an average price of $276.93, for a total transaction of $713,371.68. Following the completion of the transaction, the chief executive officer now directly 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. Insiders own 8.87% of the company’s stock.

Hedge Funds Weigh In On FedEx

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

FedEx Price Performance

The stock has a market capitalization 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 current ratio of 1.23, a quick ratio of 1.19 and a debt-to-equity ratio of 0.73. The firm’s 50-day moving average price is $259.95 and its 200-day moving average price is $272.49.

FedEx Company Profile

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.