B of A Securities Upgrades FedEx (FDX)

On February 2, 2023, B of A Securities updated its outlook for FedEx from Neutral For Buy.

Analyst price forecast suggests 6.40% drop

As of February 4, 2023, the one-year average price target for FedEx was $200.94. The predictions range from a low of $146.45 to a high of $270.90. The average price target represents a decline of 6.40% from its last reported closing price of $214.67.

FedEx’s projected annual revenue is $95,532 million, an increase of 1.53%. Projected annual EPS is $14.39, an increase of 12.06%.

FedEx declares a dividend of $1.15

FedEx said on November 18, 2022 that its board of directors had declared a regular quarterly dividend of $1.15 per share ($4.60 annualized). Shareholders of record as of Dec. 9, 2022 received payment on Jan. 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 each week, the average dividend yield was 1.45%, the low 0.79% and the high 3.22%. The standard deviation of returns 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 as dividends. A payout ratio of one (1.0) means that 100% of the company’s income is paid out as dividends. A payout ratio above one means the company is dipping into its savings to maintain its dividend, which is not a healthy situation. Companies with little growth prospects should pay most of their income in the form of dividends, which generally means a payout ratio between 0.5 and 1.0. Companies with good growth prospects should retain part of their profits in order to invest in these growth prospects, which translates into 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 do the big shareholders do?

Dodge & Cox holds 17,241,695 shares representing 6.83% ownership of the company. In its previous filing, the company said it held 17,426,647 shares, representing
a decrease
of 1.07%. The company

decreases

its portfolio allocation to FDX by 29.07% in the last quarter.

Primecap Management holds 13,878,717 shares representing 5.50% of the company’s capital. In its previous filing, the company said it held 13,433,592 shares, representing
a raise
of 3.21%. The company

decreases

its portfolio allocation to FDX by 26.76% in the last quarter.

DODGX – Dodge & Cox Stock Fund holds 10,797,177 shares representing 4.28% ownership of the company. In its previous filing, the company said it held 10,811,977 shares, representing
a decrease
by 0.14%. The company

decreases

its portfolio allocation to FDX by 29.58% in the last quarter.

VPMCX – Vanguard PRIMECAP Fund Investor Shares holds 8,931,358 shares representing 3.54% ownership of the company. In its previous filing, the company said it held 8,860,358 shares, representing
a raise
by 0.79%. The company

decreases

its portfolio allocation to FDX by 29.12% in the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares owns 6,972,099 shares representing 2.76% ownership of the company. In its previous filing, the company said it held 6,867,310 shares, representing
a raise
1.50%. The company

decreases

its FDX portfolio allocation of 30.69% in 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 US dedicated: FDX is 0.3502%, down 16.6504%. The total number of shares held by institutions has increased over the past three months by 2.41% to 221,711,000 shares.

FedEx general 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 delivers integrated business solutions through operating companies that collectively compete, operate collaboratively and innovate digitally under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 600,000 team members to stay 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.