FedEx (NYSE:FDX) Shares Gap Down on Disappointing Earnings

Shares of FedEx Co. (NYSE:FDX) gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. 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 trading hands.

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

FedEx Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 1st. Shareholders of record on Monday, September 9th will be paid a dividend of $1.38 per share. This represents a $5.52 dividend on an annualized basis and a dividend yield of 2.15%. The ex-dividend date is Monday, September 9th. FedEx’s dividend payout ratio is presently 32.04%.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the stock. HSBC downgraded shares of FedEx from a “buy” rating to a “hold” rating and set a $300.00 price target on the stock. in a research note on Friday. UBS Group reduced their price target on shares of FedEx from $333.00 to $311.00 and set a “buy” rating for the company in a report on Friday. Raymond James reduced their price target on shares of FedEx from $335.00 to $330.00 and set a “buy” rating for the company in a research note on Friday. Evercore ISI lowered their target price on FedEx from $335.00 to $318.00 and set an “outperform” rating on the stock in a report on Friday. Finally, The Goldman Sachs Group reduced their target price on shares of FedEx from $333.00 to $332.00 in a report on Friday. Two research analysts have rated the stock with a sell rating, seven have issued a hold rating and nineteen have issued a buy rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $312.24.

Insider Transactions at FedEx

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

Hedge Funds Weigh In On FedEx

Several institutional investors and hedge funds have recently made changes to their positions in FDX. Scarborough Advisors LLC acquired a new position in shares of FedEx in the fourth quarter valued at approximately $25,000. Fortis Group Advisors LLC lifted its position in FedEx by 100.0% in the 4th quarter. Fortis Group Advisors LLC now owns 100 shares of the shipping service provider’s stock valued at $25,000 after acquiring an additional 50 shares in the last quarter. Sachetta LLC bought a new stake in FedEx in the 4th quarter valued at $32,000. Central Valley Advisors LLC acquired a new position in FedEx in the 2nd quarter worth $39,000. Finally, Abound Wealth Management increased its holdings in FedEx by 175.9% during the 2nd quarter. Abound Wealth Management now owns 149 shares of the shipping service provider’s stock worth $45,000 after purchasing an additional 95 shares in the last quarter. Institutional investors and hedge funds own 84.47% of the company’s stock.

FedEx Price Performance

The company has a current ratio of 1.36, a quick ratio of 1.32 and a debt-to-equity ratio of 0.73. The stock has a market cap of $63.25 billion, a price-to-earnings ratio of 14.92, a P/E/G ratio of 1.03 and a beta of 1.17. The company has a 50 day simple moving average of $293.32 and a 200-day simple moving average of $274.80.

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.