FedEx (NYSE:FDX) Shares Break Above 50 Day Moving Average – What’s Next?

FedEx Corporation (NYSE:FDX)’s stock price passed above its 50-day moving average during trading on Tuesday. The stock has a 50-day moving average of $305.43 and traded as high as $307.94. FedEx shares last traded at $307.4360, with a volume of 1,701,357 shares changing hands.

Trending Headlines about FedEx

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: FedEx appointed Jamere Jackson as executive vice president and CFO, effective November 30. Jackson previously held senior finance roles at AutoZone, Hertz and Nielsen, and his experience could support tighter cost control, disciplined capital allocation and increased shareholder returns following the FedEx Freight spinoff. FedEx Names Jamere Jackson as Executive Vice President and Chief Financial Officer
• Positive Sentiment: Analysts highlighted potential valuation support, with some estimates describing FDX as materially undervalued based on its expected cash-generation potential. FedEx also retains more cash-flow flexibility for dividends, buybacks and investment than UPS, which may appeal to income-oriented investors. Want Safer Package Delivery Income? FedEx Pays a Smaller Yield but Keeps Far More Cash
• Neutral Sentiment: UPS reported a third-quarter beat and raised its full-year outlook, lifting the broader delivery sector. The read-through was modestly favorable for FedEx, but UPS’s stronger reaction shows investors currently prefer its earnings and guidance profile. UPS Rises 5% as Q3 Beat Lifts Full-Year Outlook; FedEx Inches Higher
• Negative Sentiment: Investors are looking ahead to FedEx’s third-quarter results, with wage inflation, pilot-contract expenses and stranded costs from the Freight separation expected to pressure margins. Transformation savings may offset some of these expenses, but earnings execution remains a key near-term risk. FedEx Gears Up for Q3 Earnings: What’s in Store for the Stock?
• Negative Sentiment: FedEx underperformed other transportation stocks despite posting a gain, suggesting investors remain cautious about its margin outlook and the uncertain performance of the newly separated freight business.

Analysts Set New Price Targets

Several brokerages have recently weighed in on FDX. Stephens upgraded FedEx to a “strong-buy” rating in a research note on Wednesday, July 8th. Bank of America cut their price target on FedEx from $378.00 to $359.00 and set a “buy” rating on the stock in a research note on Tuesday. Evercore increased their price target on FedEx from $350.00 to $351.00 in a report on Monday, September 28th. Citigroup reissued a “cautious” rating on shares of FedEx in a report on Wednesday, October 7th. Finally, Wall Street Zen upgraded FedEx to a “hold” rating in a research note on Saturday, August 8th. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, nine have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, FedEx currently has a consensus rating of “Moderate Buy” and an average target price of $362.60.

FedEx Trading Up 2.3%

The company has a 50 day simple moving average of $305.43 and a 200-day simple moving average of $337.18.

FedEx Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Monday, September 14th were paid a dividend of $1.22 per share. The ex-dividend date was Monday, September 14th. This represents a $4.88 annualized dividend and a yield of 1.6%.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. BOKF NA boosted its holdings in shares of FedEx by 12.1% in the 3rd quarter. BOKF NA now owns 20,212 shares of the shipping service provider’s stock valued at $5,762,000 after buying an additional 2,181 shares during the period. Motley Fool Asset Management LLC grew its position in shares of FedEx by 0.3% during the 3rd quarter. Motley Fool Asset Management LLC now owns 20,584 shares of the shipping service provider’s stock valued at $5,868,000 after buying an additional 54 shares during the last quarter. DecisionPoint Financial LLC raised its stake in FedEx by 44.5% during the third quarter. DecisionPoint Financial LLC now owns 211 shares of the shipping service provider’s stock worth $61,000 after acquiring an additional 65 shares during the period. Laurel Wealth Advisors LLC acquired a new stake in FedEx during the third quarter worth about $103,000. Finally, Convergence Financial LLC acquired a new stake in FedEx during the third quarter worth about $751,000. 84.47% of the stock is currently owned by institutional investors.

About FedEx

FedEx Corporation (NYSE: FDX) is a global transportation, e-commerce and business services company headquartered in Memphis, Tennessee. Through its operating companies, FedEx provides time-definite express delivery, ground shipping, freight transportation, customs brokerage, logistics and supply chain services for businesses, governments and consumers.

The company’s services include domestic and international package delivery, less-than-truckload freight transportation, warehousing, fulfillment, supply chain management and specialized logistics solutions.