FedEx (NYSE:FDX) Hits New 12-Month Low on Disappointing Earnings

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

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

FedEx Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, April 1st. Stockholders of record on Monday, March 10th will be given a $1.38 dividend. This represents a $5.52 dividend on an annualized basis and a dividend yield of 2.40%. The ex-dividend date is Monday, March 10th. FedEx’s dividend payout ratio is currently 35.18%.

Analyst Ratings Changes

A number of analysts recently commented on FDX shares. TD Cowen decreased their price objective on FedEx from $337.00 to $310.00 and set a “buy” rating on the stock in a research note on Friday. Stephens decreased their price target on FedEx from $320.00 to $300.00 and set an “overweight” rating on the stock in a research note on Friday. Citigroup decreased their price target on FedEx from $347.00 to $317.00 and set a “buy” rating on the stock in a research note on Tuesday. Barclays decreased their price target on FedEx from $365.00 to $350.00 and set an “overweight” rating on the stock in a research note on Friday. Finally, JPMorgan Chase & Co. decreased their price target on FedEx from $323.00 to $280.00 and set an “overweight” rating on the stock in a research note on Friday. Two research analysts have rated the stock with a sell rating, nine have issued a hold rating, eighteen have issued a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $301.60.

Insider Transactions at FedEx

In other news, Director Amy B. Lane acquired 333 shares of the company’s stock in a transaction dated Thursday, December 26th. The shares were bought at an average price of $276.06 per share, with a total value of $91,927.98. Following the purchase, the director now owns 333 shares of the company’s stock, valued at approximately $91,927.98. This represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP John W. Dietrich acquired 1,000 shares of the company’s stock in a transaction dated Tuesday, January 7th. The stock was purchased at an average cost of $273.98 per share, for a total transaction of $273,980.00. Following the purchase, the executive vice president now directly owns 9,067 shares in the company, valued at approximately $2,484,176.66. This represents a 12.40 % increase in their position. The disclosure for this purchase can be found here. Insiders own 8.87% of the company’s stock.

Institutional Investors Weigh In On FedEx

A number of institutional investors and hedge funds have recently modified their holdings of FDX. United Bank purchased a new position in shares of FedEx during the third quarter valued at $615,000. Quest Partners LLC acquired a new position in shares of FedEx during the 3rd quarter worth about $123,000. Pathstone Holdings LLC raised its holdings in FedEx by 2.1% in the 3rd quarter. Pathstone Holdings LLC now owns 28,592 shares of the shipping service provider’s stock valued at $7,827,000 after acquiring an additional 586 shares in the last quarter. B. Metzler seel. Sohn & Co. Holding AG acquired a new position in shares of FedEx in the 3rd quarter worth approximately $2,611,000. Finally, PNC Financial Services Group Inc. raised its holdings in shares of FedEx by 0.3% in the 3rd quarter. PNC Financial Services Group Inc. now owns 76,897 shares of the shipping service provider’s stock worth $21,045,000 after buying an additional 259 shares in the last quarter. 84.47% of the stock is owned by institutional investors and hedge funds.

FedEx Stock Performance

The firm has a market capitalization of $55.46 billion, a P/E ratio of 14.68, a price-to-earnings-growth ratio of 1.11 and a beta of 1.23. The stock has a 50-day moving average of $259.95 and a 200 day moving average of $272.64. The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.19 and a current ratio of 1.23.

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.