FedEx Co. (NYSE:FDX) Receives Moderate Buy Rating from Analysts

Shares of FedEx Co. (NYSE:FDX - Get Free Report) have garnered an average consensus rating of "Moderate Buy" from the twenty-eight brokerages covering the company, according to recent reports from MarketBeat Ratings. Out of these analysts, two have recommended selling the stock, while eight analysts suggest holding it. Additionally, eighteen analysts have given a buy recommendation for FedEx.

Brokerage Insights

The average target price set by analysts for FedEx over the next year stands at $324.88. Several research firms have recently shared their viewpoints on FedEx shares. For instance, Barclays raised its price target for FedEx from $350.00 to $365.00 while issuing an "overweight" rating. Similarly, Bank of America increased its target from $325.00 to $348.00, giving the stock a "buy" rating as well.

UBS Group updated its price target on FedEx from $311.00 to $350.00 with a "buy" rating. Raymond James also raised the target price from $305.00 to $320.00 and rated the stock as "outperform." Lastly, Bernstein Bank increased its target from $305.00 to $337.00, rating the stock as "overweight."

Current Stock Performance

As of Friday, FedEx stock opened at $275.73. The company holds a debt-to-equity ratio of 0.72, a current ratio of 1.28, and a quick ratio of 1.24. FedEx has a market capitalization of $67.37 billion, a price-to-earnings (P/E) ratio of 17.01, and a P/E/G ratio of 1.17, which indicates its earnings relative to growth. The stock's beta stands at 1.18. Over the past fifty-two weeks, FedEx has reached a low of $234.45 and a high of $313.84, while its 50-day and 200-day moving averages sit at $282.71 and $281.85, respectively.

Recent Earnings Report

FedEx released its latest quarterly earnings data on December 19th. The shipping giant reported earnings of $4.05 per share for the quarter, surpassing the consensus estimate of $3.88 by $0.17. The company achieved a return on equity of 15.61% and a net margin of 4.62%, with quarterly revenue recorded at $22 billion, just shy of analysts' expectations of $22.14 billion. This reflects a 0.7% decline compared to the same quarter last year. Analysts predict that FedEx will report an earnings per share of 19.59 for the current year.

Dividends and Institutional Holdings

Recently, FedEx announced a quarterly dividend that will be distributed on January 3rd. Record holders as of December 9th will receive a dividend of $1.38 per share. The ex-dividend date for this payment is also set for December 9th, amounting to an annualized dividend of $5.52, which reflects a dividend yield of 2.00%. Currently, FedEx has a dividend payout ratio of 34.05%.

Institutional trading activity revealed that several hedge funds have adjusted their positions in FedEx shares. Evermay Wealth Management LLC increased its stake by 72.7% during the 3rd quarter, now holding 95 shares valued at approximately $26,000. Highline Wealth Partners LLC obtained a new stake valued at around $31,000 within the same quarter. Moreover, Abound Wealth Management boosted its holdings by 175.9%, owning 149 shares valued at $45,000, while Harbor Capital Advisors Inc. entered a new stake worth $47,000.

Institutional investors collectively own 84.47% of FedEx's shares. This high level of institutional presence suggests substantial confidence among larger investors in the company’s future prospects.

About FedEx

FedEx Corporation provides transportation, e-commerce, and business services both in the United States and globally. The company's operations are categorized into segments including FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. The FedEx Express segment specializes in express transportation, small-package ground delivery, freight transportation services, and time-sensitive delivery solutions.

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