FedEx (NYSE:FDX) Shares Gap Up on Strong Earnings

Shares of FedEx Co. (NYSE:FDX - Get Free Report) gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $275.88, but opened at $294.00. FedEx shares last traded at $284.18, with a volume of 1,317,551 shares traded.

The shipping service provider reported $4.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.88 by $0.17. The business had revenue of $22 billion during the quarter, compared to analyst estimates of $22.14 billion. FedEx had a return on equity of 15.61% and a net margin of 4.62%. FedEx's quarterly revenue was down .7% compared to the same quarter last year. During the same period in the previous year, the firm earned $3.99 EPS.

FedEx Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, January 3rd. Investors of record on Monday, December 9th will be given a $1.38 dividend. The ex-dividend date of this dividend is Monday, December 9th. This represents a $5.52 annualized dividend and a yield of 2.00%. FedEx's dividend payout ratio is currently 34.05%.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on FDX. Citigroup increased their target price on FedEx from $301.00 to $331.00 and gave the stock a "buy" rating in a report on Tuesday, November 12th. Evercore ISI dropped their target price on FedEx from $335.00 to $318.00 and set an "outperform" rating on the stock in a research report on Friday, September 20th. Daiwa America downgraded FedEx from a "moderate buy" rating to a "hold" rating in a research report on Wednesday, September 11th. Wells Fargo & Company raised their price target on shares of FedEx from $305.00 to $320.00 and gave the stock an "equal weight" rating in a research note on Friday. Finally, Susquehanna reduced their target price on shares of FedEx from $345.00 to $330.00 and set a "positive" rating for the company in a report on Friday, September 20th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and eighteen have given a buy rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $325.24.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Evermay Wealth Management LLC increased its holdings in FedEx by 72.7% in the 3rd quarter. Evermay Wealth Management LLC now owns 95 shares of the shipping service provider's stock valued at $26,000 after buying an additional 40 shares during the period. Highline Wealth Partners LLC acquired a new position in FedEx during the third quarter valued at approximately $31,000. Abound Wealth Management raised its position in FedEx by 175.9% during the second quarter. Abound Wealth Management now owns 149 shares of the shipping service provider's stock valued at $45,000 after purchasing an additional 95 shares in the last quarter. Sachetta LLC lifted its stake in FedEx by 29.1% during the second quarter. Sachetta LLC now owns 164 shares of the shipping service provider's stock worth $49,000 after purchasing an additional 37 shares during the last quarter. Finally, Harbor Capital Advisors Inc. bought a new position in shares of FedEx in the 3rd quarter valued at $47,000. Institutional investors and hedge funds own 84.47% of the company's stock.

FedEx Stock Performance

The company has a current ratio of 1.28, a quick ratio of 1.24 and a debt-to-equity ratio of 0.72. The company has a market cap of $67.37 billion, a P/E ratio of 17.01, a price-to-earnings-growth ratio of 1.17 and a beta of 1.18. The company has a 50 day moving average price of $282.71 and a 200-day moving average price of $281.85.

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.