River Wealth Advisors Reduces FedEx Stake by 55.5% in Q3

River Wealth Advisors LLC has significantly reduced its investment in FedEx Corporation (NYSE: FDX), cutting its position by 55.5% during the third quarter of 2023. According to a recent 13F filing with the Securities and Exchange Commission (SEC), the firm now holds 2,104 shares of the global logistics company after selling 2,624 shares in the quarter, leaving its holdings valued at approximately $496,000.

This divestment is part of a broader trend, as several other institutional investors have also adjusted their positions in FedEx. Notably, Vanguard Group Inc. increased its stake in the shipping service provider by 13.2% during the same period. Vanguard now owns 23,442,049 shares, valued at around $5.53 billion, after acquiring an additional 2,741,723 shares.

Norges Bank entered the fray during the second quarter with a new stake worth approximately $605.5 million. Additionally, AQR Capital Management LLC made headlines by boosting its stake by an impressive 750.9%, now holding 1,015,627 shares valued at about $230.9 million. Diamond Hill Capital Management Inc. and Dodge & Cox have also increased their holdings, with the latter owning 14,482,494 shares worth around $3.29 billion.

As of now, institutional investors and hedge funds control approximately 84.47% of FedEx’s stock.

Current Stock Performance and Analysis

On Monday, FedEx shares opened at $387.07. The company maintains a current ratio of 1.27 and a quick ratio of 1.23, with a debt-to-equity ratio of 0.72. Over the past year, FedEx’s stock has fluctuated significantly, achieving a low of $194.29 and a high of $392.86. The 50-day moving average stands at $331.65, while the two-hundred day average is $277.70. With a market capitalization of $91.01 billion, FedEx’s price-to-earnings (P/E) ratio is 21.34.

Recently, the company announced a quarterly dividend of $1.45 per share, set to be paid on April 1, 2024. Shareholders on record as of March 9, 2024 will benefit from this distribution, translating to an annualized dividend of $5.80 and a yield of 1.5%. FedEx’s dividend payout ratio currently stands at 31.97%.

Recent Analyst Ratings and Market Outlook

FedEx has been the subject of various research reports this week. Truist Financial raised its target price for FedEx shares from $285.00 to $330.00 while maintaining a “buy” rating. Conversely, BNP Paribas Exane set a target price of $280.00 with a “neutral” rating.

Stifel Nicolaus has issued a target price of $412.00, while HSBC downgraded FedEx from “hold” to “reduce,” establishing a target of $335.00. Morgan Stanley adjusted its price target from $200.00 to $210.00, giving the stock an “underweight” rating.

Currently, the consensus among analysts indicates a “Moderate Buy” rating, with an average target price of $364.15. Out of the analysts covering FedEx, two have rated the stock as a Strong Buy, seventeen as Buy, nine as Hold, and three as Sell.

FedEx Corporation, headquartered in Memphis, Tennessee, has been a pioneer in logistics and courier services since its inception by Frederick W. Smith in 1971. The company has evolved from offering overnight express shipping to a comprehensive portfolio that includes transportation, e-commerce, and supply chain solutions, operating a robust air-and-ground network worldwide.

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