HSBC Downgrades FedEx (NYSE:FDX) to Reduce

FedEx (NYSE:FDX) was downgraded by equities researchers at HSBC from a “hold” rating to a “reduce” rating in a research note issued on Wednesday, MarketBeat reports. They presently have a $335.00 price target on the shipping service provider’s stock. HSBC’s price target would indicate a potential downside of 13.65% from the company’s previous close.

Other analysts have also recently issued research reports about the stock. Zacks Research upgraded shares of FedEx from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, February 17th. Royal Bank Of Canada cut FedEx to a “sector perform” rating in a research note on Wednesday, December 17th. Bank of America raised their price target on FedEx from $408.00 to $414.00 and gave the company a “buy” rating in a research report on Tuesday, February 10th. Oppenheimer reaffirmed a “market perform” rating on shares of FedEx in a research note on Friday, December 19th. Finally, Wells Fargo & Company upped their price objective on FedEx from $380.00 to $430.00 and gave the stock an “overweight” rating in a report on Friday, February 13th. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, FedEx has an average rating of “Moderate Buy” and an average price target of $364.15.

FedEx Stock Performance

Shares of FDX opened at $387.94 on Wednesday. The company has a market cap of $91.21 billion, a PE ratio of 21.39, a price-to-earnings-growth ratio of 1.82 and a beta of 1.34. The company has a current ratio of 1.27, a quick ratio of 1.23 and a debt-to-equity ratio of 0.72. The stock has a 50-day moving average price of $329.68 and a 200-day moving average price of $275.92. FedEx has a 12-month low of $194.29 and a 12-month high of $391.99.

FedEx (NYSE:FDX) last issued its quarterly earnings data on Thursday, December 18th. The shipping service provider reported $4.82 EPS for the quarter, topping the consensus estimate of $4.02 by $0.80. The company had revenue of $23.47 billion during the quarter, compared to analyst estimates of $22.79 billion. FedEx had a return on equity of 16.63% and a net margin of 4.81%.FedEx’s revenue was up 6.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $4.05 earnings per share. FedEx has set its FY 2026 guidance at 17.800-19.000 EPS. As a group, equities analysts forecast that FedEx will post 19.14 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. increased its stake in shares of FedEx by 13.2% during the third quarter. Vanguard Group Inc. now owns 23,442,049 shares of the shipping service provider’s stock valued at $5,527,870,000 after buying an additional 2,741,723 shares during the period. Dodge & Cox boosted its holdings in FedEx by 12.0% in the third quarter. Dodge & Cox now owns 16,225,160 shares of the shipping service provider’s stock valued at $3,826,055,000 after acquiring an additional 1,742,666 shares in the last quarter. State Street Corp boosted its holdings in FedEx by 4.2% in the fourth quarter. State Street Corp now owns 9,521,691 shares of the shipping service provider’s stock valued at $2,763,824,000 after acquiring an additional 382,848 shares in the last quarter. Franklin Resources Inc. increased its position in FedEx by 6.6% during the 4th quarter. Franklin Resources Inc. now owns 5,133,231 shares of the shipping service provider’s stock valued at $1,482,785,000 after purchasing an additional 318,293 shares during the period. Finally, Geode Capital Management LLC raised its holdings in FedEx by 0.9% in the 4th quarter. Geode Capital Management LLC now owns 4,985,778 shares of the shipping service provider’s stock worth $1,443,666,000 after purchasing an additional 45,818 shares in the last quarter. Institutional investors own 84.47% of the company’s stock.

Key Headlines Impacting FedEx

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: Bullish analyst commentary/support: Evercore published a bullish forecast for FDX and Rothschild & Co Redburn raised its price target (highlighting upside potential if FedEx’s operating momentum continues). Read More. Read More.
• Positive Sentiment: Capex for international growth: FedEx is investing ~$250M to build a dedicated parcel hub at the new Mumbai airport — a strategic move to expand capacity and improve margins in a high‑growth market. Read More.
• Positive Sentiment: Price action confirmation: Several market writeups noted FedEx shares outperformed the broader market today, reinforcing investor interest. Read More.
• Neutral Sentiment: Tariff refunds — FedEx says any refunds it receives tied to the struck‑down IEEPA tariffs would be returned to the shippers/customers who paid them; the company also sued to recover tariff payments. This reduces the chance FedEx keeps recovered funds but may limit regulatory/PR fallout. Read More.
• Neutral Sentiment: Legal/strategic play on tariff refunds: FedEx has filed suit in the U.S. Court of International Trade seeking refunds (plus interest/costs) — a successful recovery could lower net costs, but FedEx’s stated intention to pass refunds to shippers mutes direct upside to earnings. Read More.
• Neutral Sentiment: Broader context: The Supreme Court decision has spawned a wave of refund suits (hundreds to thousands of companies), which creates legal precedent risk/opportunity that could affect timing and certainty of FedEx’s outcome. Read More.
• Neutral Sentiment: Corporate visibility/industry engagement: Incoming FedEx Freight President & CEO will keynote ACT Expo — helps signal management’s focus on fleet/efficiency initiatives but has limited immediate earnings impact. Read More.
• Negative Sentiment: Analyst downgrade: HSBC cut FDX from Hold to Reduce and set a $335 target — a material downside view that could weigh on sentiment if other firms follow. Read More.
• Negative Sentiment: Regulatory/consumer scrutiny: U.S. Treasury officials and others are pressing for clarity on how tariff rebates will reach end customers, increasing near‑term regulatory and PR pressure on FedEx’s handling of refunds. Read More.

FedEx Company Profile

FedEx Corporation (NYSE: FDX) is a global logistics and courier company headquartered in Memphis, Tennessee. Founded by Frederick W. Smith in 1971 and beginning operations in the early 1970s, the company pioneered overnight express shipping and has since expanded into a diversified portfolio of transportation, e-commerce and supply-chain services. FedEx operates an integrated air-and-ground network that moves parcels, freight and documents for businesses and consumers worldwide.

FedEx’s core operating segments include express parcel delivery via its FedEx Express division, domestic and residential parcel delivery through FedEx Ground, less-than-truckload (LTL) freight services, and logistics and supply-chain management solutions.