FedEx (NYSE:FDX) Sets New 1-Year Low on Disappointing Earnings

FedEx Co. (NYSE:FDX - Get Free Report)'s stock price reached a new 52-week low during mid-day trading on Friday following a dissappointing earnings announcement. The company traded as low as $217.22 and last traded at $220.35, with a volume of 2202379 shares changing hands. 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). The firm had revenue of $22.16 billion for the quarter, compared to the consensus estimate of $21.96 billion. FedEx had a return on equity of 15.59% and a net margin of 4.45%. The business's revenue was up 1.9% on a year-over-year basis. During the same period last year, the company posted $3.86 EPS.

FedEx Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, April 1st. Investors of record on Monday, March 10th will be given a dividend of $1.38 per share. The ex-dividend date is Monday, March 10th. This represents a $5.52 annualized dividend and a yield of 2.28%. FedEx's dividend payout ratio is presently 35.18%.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the stock. UBS Group dropped their price target on shares of FedEx from $350.00 to $331.00 and set a "buy" rating for the company in a research note on Friday. Oppenheimer reaffirmed a "market perform" rating on shares of FedEx in a report on Friday. Citigroup decreased their price target on FedEx from $347.00 to $317.00 and set a "buy" rating for the company in a research note on Tuesday, March 18th. Barclays cut their price objective on FedEx from $365.00 to $350.00 and set an "overweight" rating on the stock in a research note on Friday. Finally, Deutsche Bank Aktiengesellschaft started coverage on shares of FedEx in a research report on Friday, March 7th. They set a "buy" rating and a $337.00 target price for the company. Two investment analysts have rated the stock with a sell rating, eight have assigned a hold rating, nineteen have assigned a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $300.60.

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Insider Buying and Selling at FedEx

In related news, CEO Richard W. Smith sold 2,576 shares of FedEx stock in a transaction that occurred on Tuesday, January 7th. The stock was sold at an average price of $276.93, for a total transaction of $713,371.68. Following the transaction, the chief executive officer now owns 111,886 shares of the company's stock, valued at $30,984,589.98. The trade was a 2.25 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Amy B. Lane purchased 333 shares of the stock in a transaction that occurred on Thursday, December 26th. The stock was bought at an average cost of $276.06 per share, with a total value of $91,927.98. Following the completion of the transaction, the director now directly owns 333 shares in the company, valued at $91,927.98. The trade was a ∞ increase in their position. The disclosure for this purchase can be found here. 8.87% of the stock is currently owned by company insiders.

Institutional Trading of FedEx

Institutional investors have recently made changes to their positions in the company. Fortitude Family Office LLC boosted its holdings in FedEx by 144.4% during the fourth quarter. Fortitude Family Office LLC now owns 88 shares of the shipping service provider's stock worth $25,000 after purchasing an additional 52 shares during the last quarter. Transce3nd LLC bought a new position in FedEx in the 4th quarter valued at $26,000. Peoples Financial Services CORP. purchased a new stake in shares of FedEx during the 4th quarter valued at $28,000. City Holding Co. bought a new stake in shares of FedEx during the 4th quarter worth $28,000. Finally, Kentucky Trust Co bought a new position in FedEx during the fourth quarter valued at about $28,000. Institutional investors own 84.47% of the company's stock.

FedEx Price Performance

The firm has a market cap of $58.43 billion, a PE ratio of 15.46, a P/E/G ratio of 1.11 and a beta of 1.23. The company has a debt-to-equity ratio of 0.73, a current ratio of 1.23 and a quick ratio of 1.19. The business's fifty day moving average is $259.95 and its 200-day moving average is $272.35.

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.