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

FedEx Co. (NYSE:FDX - Get Free Report) gapped down before the market opened on Friday following a dissappointing earnings announcement. 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 traded.

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

FedEx Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 1st. Investors of record on Monday, September 9th will be paid a $1.38 dividend. The ex-dividend date of this dividend is Monday, September 9th. This represents a $5.52 dividend on an annualized basis and a yield of 2.17%. FedEx's dividend payout ratio is 32.04%.

Analyst Ratings Changes

A number of equities analysts have recently commented on FDX shares. UBS Group cut their price target on FedEx from $333.00 to $311.00 and set a "buy" rating for the company in a report on Friday. Wells Fargo & Company increased their price objective on FedEx from $275.00 to $300.00 and gave the stock an "equal weight" rating in a report on Wednesday, June 26th. BMO Capital Markets reduced their target price on FedEx from $325.00 to $300.00 and set a "market perform" rating for the company in a report on Friday. TD Cowen lowered their price target on shares of FedEx from $334.00 to $328.00 and set a "buy" rating on the stock in a report on Friday. Finally, Bernstein Bank raised their price objective on shares of FedEx from $305.00 to $337.00 and gave the company an "overweight" rating in a research report on Friday. Two equities research analysts have rated the stock with a sell rating, seven have given a hold rating and nineteen have given a buy rating to the company. According to MarketBeat.com, FedEx has an average rating of "Moderate Buy" and a consensus price target of $312.84.

Insider Activity

In other news, CAO Guy M. Erwin II sold 116 shares of the business's stock in a transaction dated Wednesday, July 3rd. The stock was sold at an average price of $299.24, for a total value of $34,711.84. Following the completion of the sale, the chief accounting officer now owns 930 shares of the company's stock, valued at approximately $278,293.20. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. In other news, CEO Sriram Krishnasamy sold 8,421 shares of the firm's stock in a transaction that occurred on 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 transaction, the chief executive officer now owns 12,246 shares in the company, valued at $3,797,974.44. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Guy M. Erwin II sold 116 shares of the company's stock in a transaction on Wednesday, July 3rd. The shares were sold at an average price of $299.24, for a total transaction of $34,711.84. Following the sale, the chief accounting officer now owns 930 shares of the company's stock, valued at $278,293.20. The disclosure for this sale can be found here. Over the last three months, insiders have sold 32,944 shares of company stock valued at $9,882,355. 8.73% of the stock is currently owned by insiders.

Institutional Investors Weigh In On FedEx

Large investors have recently added to or reduced their stakes in the company. Scarborough Advisors LLC bought a new stake in shares of FedEx in the 4th quarter worth approximately $25,000. Fortis Group Advisors LLC lifted its stake in FedEx by 100.0% in the fourth quarter. Fortis Group Advisors LLC now owns 100 shares of the shipping service provider's stock worth $25,000 after acquiring an additional 50 shares during the period. Sachetta LLC purchased a new stake in FedEx in the fourth quarter worth $32,000. Central Valley Advisors LLC bought a new stake in FedEx in the second quarter valued at $39,000. Finally, Abound Wealth Management increased its position in FedEx by 175.9% during the 2nd 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 during the period. Institutional investors own 84.47% of the company's stock.

FedEx Stock Down 15.2 %

The company's fifty day simple moving average is $293.32 and its 200 day simple moving average is $274.80. 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 firm has a market capitalization of $62.66 billion, a P/E ratio of 15.02, a price-to-earnings-growth ratio of 1.03 and a beta of 1.17.

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.