Is FedEx (NYSE:FDX) Now a Sell? Why did Raymond James Downgrade The Stock?

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FedEx (NYSE:FDX) Receives a Downgrade

Raymond James has given FedEx (NYSE:FDX) shares a new Mkt Perform rating in analysts note shared with investors on Monday, 14 December. This was a ratings cut from the past Strong Buy rating.

From a total of 24 analysts covering FedEx (NYSE:FDX) stock, 18 rate it a ”Buy”, 0 a “Sell”, and 10 a ”Hold”. This means that 64% of the ratings are positive. The highest target price is $210 while the lowest target price is $157. The mean of all analyst targets is $183.63 with a 4.93% above today’s ($142.08) stock price. FedEx was the topic of 22 analyst reports since August 14, 2015 according to the firm StockzIntelligence Inc. Wolfe Research downgraded shares on November 30 to “Peer Perform” rating. RBC Capital Markets maintained shares with “Sector Perform” rating and $157 target share price in a report from a September 17. Stifel Nicolaus upgraded FDX stock in a recent report from October 6 to “Buy” rating. Buckingham Research maintained the rating on September 17. Buckingham Research has a “Neutral” rating and a $175 price target on shares. Finally, Susquehanna maintained the stock with “Neutral” rating in a report issued on a September 18.

Approximately 1.46M shares of stock traded hands. FedEx Corporation (NYSE:FDX) has declined 17.19% since May 11, 2015 and is downtrending. It has underperformed by 12.77% the S&P500.

Analysts await FedEx Corporation (NYSE:FDX) to reports earnings on December, 16 before the open. They expect $2.55 earnings per share, up 19.16% or $0.41 from last year’s $2.14 per share. FDX’s profit will be $730.80 million for 13.93 P/E if the $2.55 EPS becomes reality. After $2.42 actual earnings per share reported by FedEx Corporation for the previous quarter, Wall Street now forecasts 5.37% EPS growth.

The overall sentiment of institutions has increased to 1.06 in Q2 2015. Its up 0.05, from 1.01 in 2015Q2. The ratio is positive, as 100 institutions have sold all the shares of FedEx Corporation that they owned while 303 funds have taken shares off the table. 82 funds have purchased shares for the first time while 346 added to their positions. These institutions now hold 217.16 million shares or 2.94% more than the 210.94 million shares they owned in 2015Q2.

The Fund Greenhaven Associates Inc currently is holding shares equating to 13.01% of its total portfolio in FedEx Corporation representing a total of 4.52 million shares. Another fund,12Th Street Asset Management Company Llc, is holding a total of 183,406 shares equating to 9.68% of their holdings. Additionally, Marianas Fund Management Llc has a 273,900 share stake in FedEx Corporation which represents 7.76% of their total portfolio. The Fund, Southeastern Asset Management Inc Tn, based out of Tennessee, has also built up a stake in the stock, which represents a total of 7.76% of their total portfolio. Finally Lakewood Capital Management Lp, a fund which is based in the state of New York reported a total holdings of 1.05 million shares.

Insider activity is a very important aspect to track on any stock. Going back to May 8, 2015, shareholders of FedEx Corporation have witnessed 0 buys, and a total of 1 insider sale equating to a net activity of approximately $228,251 . Edwardson John A sold 1,572 shares worth approximately $228,251. Walsh Paul S sold 4,400 shares worth approximately $763,608.

FedEx Corporation provides a portfolio of transportation, e-commerce and business services under the FedEx brand. The company has a market cap of $40.72 billion. The Firm offers its services through companies constituting four business divisions: FedEx Express, FedEx Ground, FedEx Freight and FedEx Services. It has 36.49 P/E ratio. FedEx Express offers a range of domestic and international shipping services for delivery of packages and freight.

According to Zacks Investment Research, “FedEx Corporation is a global transportation and logistics enterprise that offers customers a one-stop source for global shipping, logistics and supply chain solutions. Services offered by FedEx companies include worldwide express delivery, ground small-parcel delivery, less-than-truckload freight delivery and global logistics, supply chain management and electronic commerce solutions.”

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