FedEx (NYSE:FDX) Shares Gap Up After Better-Than-Expected Earnings

FedEx Co. (NYSE:FDX) shares gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $236.67, but opened at $261.00. FedEx shares last traded at $253.50, with a volume of 240,666 shares.

The shipping service provider reported $4.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.69 by $2.18. The business had revenue of $19.32 billion for the quarter, compared to analyst estimates of $17.56 billion. FedEx had a return on equity of 13.49% and a net margin of 1.86%. The company’s quarterly revenue was up 13.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $3.05 earnings per share.

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Friday, September 4th will be issued a $0.65 dividend. The ex-dividend date is Thursday, September 3rd. This represents a $2.60 annualized dividend and a yield of 1.04%. FedEx’s payout ratio is currently 27.37%.

A number of research analysts have recently weighed in on FDX shares. Raymond James raised their target price on FedEx from $165.00 to $280.00 and gave the company an “outperform” rating in a report on Wednesday. Stephens raised their target price on FedEx from $215.00 to $260.00 and gave the company an “overweight” rating in a report on Thursday, September 10th. Bank of America restated a “buy” rating and issued a $300.00 target price on shares of FedEx in a report on Wednesday. UBS Group raised their target price on FedEx from $218.00 to $320.00 and gave the company a “buy” rating in a report on Wednesday. Finally, Cowen raised their target price on FedEx from $167.00 to $264.00 and gave the company an “outperform” rating in a report on Friday, September 11th. One research analyst has rated the stock with a sell rating, eleven have given a hold rating, eighteen have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The company currently has an average rating of “Buy” and a consensus target price of $250.23.

In other news, Director David P. Steiner sold 1,951 shares of FedEx stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $205.00, for a total value of $399,955.00. Following the completion of the transaction, the director now directly owns 31,610 shares in the company, valued at $6,480,050. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Brie Carere sold 1,307 shares of FedEx stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $202.60, for a total value of $264,798.20. Following the completion of the transaction, the executive vice president now owns 11,481 shares of the company’s stock, valued at $2,326,050.60. The disclosure for this sale can be found here. Insiders sold 44,058 shares of company stock valued at $7,149,678 over the last three months. Company insiders own 8.49% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Profund Advisors LLC grew its position in shares of FedEx by 2.3% in the second quarter. Profund Advisors LLC now owns 2,782 shares of the shipping service provider’s stock valued at $390,000 after purchasing an additional 63 shares in the last quarter. Glassman Wealth Services grew its position in shares of FedEx by 4.8% in the second quarter. Glassman Wealth Services now owns 1,410 shares of the shipping service provider’s stock valued at $198,000 after purchasing an additional 64 shares in the last quarter. SevenBridge Financial Group LLC grew its position in shares of FedEx by 0.7% in the second quarter. SevenBridge Financial Group LLC now owns 9,602 shares of the shipping service provider’s stock valued at $1,346,000 after purchasing an additional 67 shares in the last quarter. Tiemann Investment Advisors LLC grew its position in FedEx by 4.9% during the second quarter. Tiemann Investment Advisors LLC now owns 1,518 shares of the shipping service provider’s stock worth $213,000 after buying an additional 71 shares in the last quarter. Finally, Heron Financial Group LLC grew its position in FedEx by 2.5% during the second quarter. Heron Financial Group LLC now owns 3,078 shares of the shipping service provider’s stock worth $488,000 after buying an additional 74 shares in the last quarter. Institutional investors own 71.65% of the company’s stock.

The company has a 50-day moving average of $206.06 and a 200 day moving average of $149.32. The company has a quick ratio of 1.53, a current ratio of 1.58 and a debt-to-equity ratio of 1.20. The firm has a market capitalization of $65.58 billion, a PE ratio of 51.19, a PEG ratio of 1.84 and a beta of 1.48.

FedEx Company Profile (NYSE:FDX)

FedEx Corporation provides transportation, e-commerce, and business services worldwide. The company's FedEx Express segment offers shipping services for delivery of packages and freight. Its FedEx Ground segment provides business and residential money-back guaranteed ground package delivery services; and consolidates and delivers low-weight and less time-sensitive business-to-consumer packages.

See Also: Relative Strength Index

Receive News & Ratings for FedEx Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for FedEx and related companies with MarketBeat.com's FREE daily email newsletter.