FedEx (NYSE:FDX) Cut to Hold at Zacks Research

Zacks Research cut shares of FedEx (NYSE:FDX) from a strong-buy rating to a hold rating in a research note released on Wednesday,Zacks.com reports.

Several other brokerages also recently issued reports on FDX. Jefferies Financial Group raised their price objective on shares of FedEx from $425.00 to $450.00 and gave the stock a “buy” rating in a research report on Tuesday, March 3rd. Bank of America upped their target price on shares of FedEx from $408.00 to $414.00 and gave the company a “buy” rating in a report on Tuesday, February 10th. Susquehanna lowered their price target on FedEx from $345.00 to $340.00 in a report on Tuesday, December 23rd. Oppenheimer restated a “market perform” rating on shares of FedEx in a research report on Friday, December 19th. Finally, UBS Group upped their price objective on FedEx from $314.00 to $412.00 and gave the company a “buy” rating in a research note on Wednesday, February 4th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $393.85.

FedEx Price Performance

Shares of NYSE FDX opened at $358.44 on Wednesday. The company has a current ratio of 1.27, a quick ratio of 1.23 and a debt-to-equity ratio of 0.72. FedEx has a twelve month low of $194.29 and a twelve month high of $392.86. The stock has a 50 day moving average of $351.21 and a two-hundred day moving average of $290.82. The stock has a market cap of $84.28 billion, a P/E ratio of 19.08, a P/E/G ratio of 1.69 and a beta of 1.29.

FedEx (NYSE:FDX) last announced its earnings results on Thursday, March 19th. The shipping service provider reported $5.25 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.12 by $1.13. The business had revenue of $24 billion for the quarter, compared to analyst estimates of $23.44 billion. FedEx had a net margin of 4.88% and a return on equity of 17.03%. The company’s revenue for the quarter was up 8.3% compared to the same quarter last year. During the same period last year, the firm posted $4.51 earnings per share. On average, research analysts forecast that FedEx will post 19.14 earnings per share for the current year.

FedEx Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Monday, March 9th will be issued a dividend of $1.45 per share. This represents a $5.80 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend is Monday, March 9th. FedEx’s dividend payout ratio is currently 31.97%.

Institutional Investors Weigh In On FedEx

A number of institutional investors have recently added to or reduced their stakes in FDX. Vanguard Group Inc. raised its stake in shares of FedEx by 13.2% during the 3rd quarter. Vanguard Group Inc. now owns 23,442,049 shares of the shipping service provider’s stock worth $5,527,870,000 after buying an additional 2,741,723 shares in the last quarter. Dodge & Cox boosted its stake in shares of 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 buying an additional 1,742,666 shares in the last quarter. State Street Corp boosted its stake in shares of 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 buying an additional 382,848 shares in the last quarter. Franklin Resources Inc. grew its holdings in FedEx by 6.6% during the fourth quarter. Franklin Resources Inc. now owns 5,133,231 shares of the shipping service provider’s stock worth $1,482,785,000 after acquiring an additional 318,293 shares during the period. Finally, Geode Capital Management LLC grew its holdings in FedEx by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 4,985,778 shares of the shipping service provider’s stock worth $1,443,666,000 after acquiring an additional 45,818 shares during the period. Hedge funds and other institutional investors own 84.47% of the company’s stock.

More FedEx News

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: Q3 beat and guidance raise — FedEx posted a double beat (EPS and revenue) and lifted full‑year profit guidance, which is the primary driver behind the stock rally. Article Link
• Positive Sentiment: Analyst re‑ratings and price‑target lifts — Multiple firms (UBS, Wells Fargo, BofA, Susquehanna, Stephens, TD Cowen, Truist, Stifel, BMO, etc.) raised targets or upgraded ratings after the results, supporting further upside sentiment. Article Link
• Neutral Sentiment: Management says demand is holding — FedEx flagged that early‑March volumes matched expectations and that its fuel surcharge is moderating higher fuel costs, but management assumes no additional geopolitical disruptions. That reduces immediate downside but leaves exposure to future shocks. Article Link
• Neutral Sentiment: Market context is mixed — broader markets are pressured by oil/geo risks and macro data, so FedEx’s outperformance is occurring in a risk‑off environment that could limit follow‑through. Article Link
• Negative Sentiment: Cost and segment risks persist — fuel costs are materially higher (a key margin headwind) and the Freight business remains weak; both could pressure results if trends worsen. Article Link
• Negative Sentiment: Some caution in the market and mixed guidance reaction — a few headlines note the company gave a relatively cautious near‑term forecast that caused intraday profit‑taking, and one major house (Morgan Stanley) still expresses an underweight stance with a much lower target. Article Link
• Negative Sentiment: Operational/PR risk — the NTSB is probing a close runway call involving a FedEx jet, a reputational/operational overhang to monitor. Article Link

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.