On February 2, 2023, B of A Securities upgraded their outlook for FedEx from Neutral to Buy.
Analyst Price Forecast Suggests 6.40% Downside
As of February 4, 2023, the average one-year price target for FedEx is $200.94. The forecasts range from a low of $146.45 to a high of $270.90. The average price target represents a decrease of 6.40% from its latest reported closing price of $214.67.
The projected annual revenue for FedEx is $95,532MM, an increase of 1.53%. The projected annual EPS is $14.39, an increase of 12.06%.
FedEx Declares $1.15 Dividend
FedEx said on November 18, 2022 that its board of directors declared a regular quarterly dividend of $1.15 per share ($4.60 annualized). Shareholders of record as of December 9, 2022 received the payment on January 3, 2023. Previously, the company paid $1.15 per share.
At the current share price of $214.67 / share, the stock's dividend yield is 2.14%. Looking back five years and taking a sample every week, the average dividend yield has been 1.45%, the lowest has been 0.79%, and the highest has been 3.22%. The standard deviation of yields is 0.53 (n=237).
The current dividend yield is 1.31 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.35. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.77%, demonstrating that it has increased its dividend over time.
What are large shareholders doing?
Dodge & Cox holds 17,241,695 shares representing 6.83% ownership of the company. In it's prior filing, the firm reported owning 17,426,647 shares, representing a decrease of 1.07%. The firm decreased its portfolio allocation in FDX by 29.07% over the last quarter.
Primecap Management holds 13,878,717 shares representing 5.50% ownership of the company. In it's prior filing, the firm reported owning 13,433,592 shares, representing an increase of 3.21%. The firm decreased its portfolio allocation in FDX by 26.76% over the last quarter.
DODGX - Dodge & Cox Stock Fund holds 10,797,177 shares representing 4.28% ownership of the company. In it's prior filing, the firm reported owning 10,811,977 shares, representing a decrease of 0.14%. The firm decreased its portfolio allocation in FDX by 29.58% over the last quarter.
VPMCX - Vanguard PRIMECAP Fund Investor Shares holds 8,931,358 shares representing 3.54% ownership of the company. In it's prior filing, the firm reported owning 8,860,358 shares, representing an increase of 0.79%. The firm decreased its portfolio allocation in FDX by 29.12% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 6,972,099 shares representing 2.76% ownership of the company. In it's prior filing, the firm reported owning 6,867,310 shares, representing an increase of 1.50%. The firm decreased its portfolio allocation in FDX by 30.69% over the last quarter.
Fund Sentiment
There are 2349 funds or institutions reporting positions in FedEx. This is a decrease of 104 owner(s) or 4.24%.
Average portfolio weight of all funds dedicated to US:FDX is 0.3502%, a decrease of 16.6504%. Total shares owned by institutions increased in the last three months by 2.41% to 221,711K shares.
Fedex Background Information
(This description is provided by the company.)
FedEx Corp. provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenue of $75 billion, the company offers integrated business solutions through operating companies competing collectively, operating collaboratively and innovating digitally under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its nearly 600,000 team members to remain focused on safety, the highest ethical and professional standards and the needs of their customers and communities.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
