On October 5, 2023, financial services firm Bailard Inc. announced that it had acquired a new stake in FedEx Co., a leading shipping service provider. According to the company’s most recent Form 13F filing with the Securities & Exchange Commission, Bailard Inc. purchased 1,009 shares of FedEx stock, totaling approximately $250,000 in value.
This investment comes shortly after FedEx released its earnings results for the third quarter of the fiscal year. The shipping service provider reported earnings per share (EPS) of $4.55 for the quarter, surpassing analysts’ consensus estimates of $3.71 by an impressive $0.84. Despite slightly missing revenue expectations with $21.68 billion compared to the projected $21.74 billion, FedEx displayed a return on equity of 16.14% and a net margin of 4.71%. Although quarterly revenue experienced a decline of 6.5% year-over-year, this performance is somewhat mitigated when considering that the company had posted EPS of $3.44 during the same period in the previous year.
Several research firms have provided their insights and ratings on FedEx in light of these results. For instance, Stephens reaffirmed an “overweight” rating and set a price objective of $290 for shares of FedEx on September 21st. Similarly, Robert W. Baird reiterated an “outperform” rating and assigned a price objective of $300 to the company’s stock on September 14th.
Bank of America also showed confidence in FedEx by raising their target price from $309 to $330 and giving the stock a “buy” rating on September 21st. On the other hand, Credit Suisse Group reduced their target price from$273 to $265 back in June.
Overall, Bloomberg data indicates that there are currently seven research analysts who have rated FedEx as a hold and seventeen who have labeled it as a buy. With an average price target of $277.96, the stock holds a consensus rating of “Moderate Buy.”
These recent developments highlight Bailard Inc.’s decision to invest in FedEx as well as the positive earnings performance of the shipping service provider. As FedEx continues to navigate the ever-changing logistics landscape, shareholders and industry experts will be closely monitoring its progress and evaluating its prospects for future growth and profitability.
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Investment Trends and Financial Analysis of FedEx Stock
On October 5, 2023, various hedge funds engaged in the buying and selling of shares in FedEx, the renowned shipping service provider. One such example is Lavaca Capital LLC, which saw a significant increase in its holdings of FedEx during the first quarter. Impressively, their holdings grew by 71.4%, representing a substantial investment. As a result, Lavaca Capital LLC now owns an impressive 2,946 shares of FedEx’s stock with an estimated value of $651,000 after acquiring an additional 1,227 shares during that period.
Similarly, Truist Financial Corp also boosted its stake in FedEx by 1.3%. They currently own a staggering 111,459 shares of the shipping service provider’s stock worth approximately $25,467,000. This increase was made possible by acquiring an additional 1,457 shares within the same first quarter timeframe.
Another noteworthy investor is Nelson Van Denburg & Campbell Wealth Management Group LLC. They increased their stake in FedEx by 5%, resulting in ownership of 2,202 shares valued at around $503,000. This was accomplished through the acquisition of an extra 104 shares.
GW&K Investment Management LLC also made a new investment move by purchasing shares of FedEx worth approximately $27,000 during the first quarter. Lastly, Foundations Investment Advisors LLC added to the mix with their own purchase of FedEx stocks totaling around $405,000.
Overall and quite surprisingly perhaps is the fact that institutional investors now hold an impressive percentage – specifically 73.61% – of all issued stocks for this company.
In addition to these investments and acquisitions made by various companies and institutions related to FedEx stock purchases at the beginning of this year comes news concerning one EVP Michael C. Lenz who sold a substantial number of his own personal stocks on July 20th – precisely numbering at around 5,745 shares during that transaction.
These sales were carried out at an average price of $261.88 per share, thus totaling a significant monetary value of approximately $1,504,500.60. Following this transaction, Mr.Lenz now holds only 22,478 shares of the company’s stock that remained in his possession.
During the course of this action, it should be noted that insider ownership accounted for 8.73% of total stocks sold in FedEx.
In terms of performance and market indicators, on Thursday (the reference date), FedEx opened at a trading price of $260.05. The current market capitalization for FedEx stands at a substantial amount of $65.38 billion.
Analyzing additional data regarding stock valuation parameters and risk measurement metrics is vital to gain deeper analytical insights into the company’s financial health. FedEx has been assigned a price-to-earnings ratio (P/E ratio) of 15.86 as well as a P/E/G ratio (“price/earnings to growth” ratio) estimated at 1.22. These ratios provide valuable information on how the stock is valued compared to its earnings and projected growth rate, respectively.
Furthermore, analysts pay close attention to beta values that measure systematic risk associated with particular stocks or investments within the overall market context where they operate. For FedEx shares specifically, the beta rating currently stands at 1.33 – indicating higher volatility in comparison to an average stock’s behavior.
Two major factors contributing to overall assessments include both short-term and long-term moving averages for the company’s stock prices over specific timeframes such as 50-day and 200-day moving averages. As reported on October 5th, FedEx’s stock recorded a 50-day moving average of $261.11 while displaying a slightly lower figure for its longer-term counterpart – specifically $243.04.
Despite these fluctuations observed within different timeframes throughout the year, it is worth mentioning that FedEx experienced both highs and lows during the past twelve months. The lowest point reached for the stock stands at $148.93 while the highest price recorded achieved an impressive peak of $270.95.
In terms of liquidity and debt management, FedEx displays a healthy financial position as evidenced by its debt-to-equity ratio of 0.76, implying that the company has managed to keep its debt relatively under control considering its equity or ownership capital structure.
Additionally, FedEx exhibits favorable short-term liquidity ratios with a quick ratio of 1.32 and current ratio of 1.37 – suggesting that the company possesses sufficient liquid assets to meet its liabilities in both immediate and near-term circumstances.
Overall, looking at these numbers and statistics enables investors to gain more insights into the performance and financial standing of FedEx. It is important for shareholders and analysts alike to interpret this data carefully in order to make informed decisions based on their investment strategies and risk preferences.
