Stock Buyback Program Declared by FedEx (NYSE:FDX) Board

FedEx (NYSE:FDXGet Free Report) announced that its Board of Directors has approved a share buyback plan on Thursday, March 21st, RTT News reports. The company plans to buyback $5.00 billion in shares. This buyback authorization allows the shipping service provider to purchase up to 7.6% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s management believes its shares are undervalued.

FedEx Stock Performance

FDX opened at $264.78 on Friday. FedEx has a 52-week low of $213.80 and a 52-week high of $285.53. The company has a market cap of $66.17 billion, a PE ratio of 15.69, a price-to-earnings-growth ratio of 1.22 and a beta of 1.20. The company has a debt-to-equity ratio of 0.75, a quick ratio of 1.30 and a current ratio of 1.34. The stock has a 50-day moving average of $246.19 and a 200-day moving average of $251.46.

FedEx (NYSE:FDXGet Free Report) last posted its earnings results on Thursday, March 21st. The shipping service provider reported $3.86 earnings per share for the quarter, topping the consensus estimate of $3.60 by $0.26. FedEx had a net margin of 4.87% and a return on equity of 16.47%. The business had revenue of $21.70 billion for the quarter, compared to analyst estimates of $21.95 billion. During the same quarter in the prior year, the firm earned $3.41 EPS. The firm’s quarterly revenue was down 2.1% compared to the same quarter last year. As a group, equities research analysts forecast that FedEx will post 17.52 earnings per share for the current fiscal year.

FedEx Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, April 1st. Stockholders of record on Monday, March 11th will be given a $1.26 dividend. The ex-dividend date is Friday, March 8th. This represents a $5.04 dividend on an annualized basis and a dividend yield of 1.90%. FedEx’s payout ratio is presently 29.86%.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on FDX. Stifel Nicolaus cut their target price on shares of FedEx from $305.00 to $290.00 and set a “buy” rating for the company in a research note on Thursday. Melius upgraded FedEx from a “hold” rating to a “buy” rating in a research report on Monday, January 8th. Stephens reduced their price target on shares of FedEx from $330.00 to $320.00 and set an “overweight” rating on the stock in a research report on Wednesday, December 20th. Bank Of America (Bofa) lifted their price objective on shares of FedEx from $330.00 to $334.00 in a research note on Wednesday, December 20th. Finally, JPMorgan Chase & Co. decreased their target price on shares of FedEx from $322.00 to $305.00 and set a “neutral” rating on the stock in a research report on Wednesday, December 20th. Six research analysts have rated the stock with a hold rating and nineteen have issued a buy rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $289.00.

Read Our Latest Analysis on FDX

Insider Activity

In related news, EVP John W. Dietrich acquired 1,000 shares of the stock in a transaction dated Thursday, December 28th. The stock was purchased at an average cost of $252.02 per share, with a total value of $252,020.00. Following the completion of the purchase, the executive vice president now directly owns 4,745 shares in the company, valued at approximately $1,195,834.90. The purchase was disclosed in a filing with the SEC, which is available through this hyperlink. In related news, EVP John W. Dietrich bought 1,000 shares of the business’s stock in a transaction that occurred on Thursday, December 28th. The stock was bought at an average cost of $252.02 per share, for a total transaction of $252,020.00. Following the completion of the transaction, the executive vice president now owns 4,745 shares of the company’s stock, valued at $1,195,834.90. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Amy B. Lane acquired 200 shares of the company’s stock in a transaction dated Tuesday, December 26th. The shares were bought at an average cost of $253.22 per share, with a total value of $50,644.00. Following the purchase, the director now owns 3,304 shares of the company’s stock, valued at approximately $836,638.88. The disclosure for this purchase can be found here. Corporate insiders own 8.73% of the company’s stock.

FedEx Company Profile

(Get Free Report)

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.

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