FedEx (NYSE:FDX) Downgraded to Reduce Rating by HSBC

FedEx (NYSE:FDX) was downgraded by analysts at HSBC from a “hold” rating to a “reduce” rating in a research note issued to investors on Wednesday, Marketbeat Ratings reports. They currently have a $335.00 target price on the shipping service provider’s stock. HSBC’s price objective points to a potential downside of 12.44% from the company’s previous close.

Other analysts have also issued research reports about the company. Truist Financial lifted their target price on FedEx from $285.00 to $330.00 and gave the stock a “buy” rating in a report on Friday, December 19th. Wells Fargo & Company raised their price target on shares of FedEx from $380.00 to $430.00 and gave the company an “overweight” rating in a report on Friday, February 13th. Wolfe Research boosted their price objective on shares of FedEx from $355.00 to $394.00 and gave the company an “outperform” rating in a report on Tuesday, February 10th. Morgan Stanley raised their target price on shares of FedEx from $200.00 to $210.00 and gave the stock an “underweight” rating in a report on Friday, December 19th. Finally, Rothschild & Co Redburn boosted their target price on shares of FedEx from $317.00 to $371.00 and gave the company a “neutral” rating in a research note on Tuesday. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, nine have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, FedEx presently has an average rating of “Moderate Buy” and an average target price of $364.15.

FedEx Price Performance

Shares of NYSE:FDX traded down $3.98 during trading on Wednesday, reaching $382.58. The company had a trading volume of 365,499 shares, compared to its average volume of 1,904,574. The company has a fifty day moving average of $325.67 and a two-hundred day moving average of $274.38. The company has a current ratio of 1.27, a quick ratio of 1.23 and a debt-to-equity ratio of 0.72. The stock has a market capitalization of $89.95 billion, a P/E ratio of 21.10, a price-to-earnings-growth ratio of 1.83 and a beta of 1.34. FedEx has a 12 month low of $194.29 and a 12 month high of $391.65.

FedEx (NYSE:FDX) last released its earnings results on Thursday, December 18th. The shipping service provider reported $4.82 EPS for the quarter, beating the consensus estimate of $4.02 by $0.80. The company had revenue of $23.47 billion for the quarter, compared to analyst estimates of $22.79 billion. FedEx had a net margin of 4.81% and a return on equity of 16.63%. The firm’s quarterly revenue was up 6.8% compared to the same quarter last year. During the same quarter last year, the firm earned $4.05 EPS. FedEx has set its FY 2026 guidance at 17.800-19.000 EPS. Equities research analysts forecast that FedEx will post 19.14 earnings per share for the current year.

Institutional Investors Weigh In On FedEx

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Norges Bank bought a new position in shares of FedEx during the fourth quarter worth $859,085,000. Vanguard Group Inc. lifted its stake in FedEx by 13.2% in the 3rd quarter. Vanguard Group Inc. now owns 23,442,049 shares of the shipping service provider’s stock worth $5,527,870,000 after purchasing an additional 2,741,723 shares in the last quarter. Boston Partners purchased a new position in shares of FedEx during the third quarter valued at about $468,195,000. Dodge & Cox increased its holdings in shares of FedEx by 12.0% in the third quarter. Dodge & Cox now owns 16,225,160 shares of the shipping service provider’s stock worth $3,826,055,000 after purchasing an additional 1,742,666 shares during the last quarter. Finally, AQR Capital Management LLC boosted its stake in FedEx by 169.2% during the third quarter. AQR Capital Management LLC now owns 2,733,905 shares of the shipping service provider’s stock valued at $638,203,000 after buying an additional 1,718,278 shares during the last quarter. Institutional investors own 84.47% of the company’s stock.

More FedEx News

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: FedEx sued the U.S. government in the U.S. Court of International Trade seeking a full refund of duties paid under the IEEPA after the Supreme Court ruling — a move that could recover material cash if successful and reduce the tariff drag on earnings. FedEx sues US for refund on Trump’s emergency tariffs (Reuters/Yahoo)
• Positive Sentiment: Coverage highlights FedEx as one of the first major corporates to press for refunds; Fortune notes the company had expected about a $1B profit hit from the tariffs, so successful recuperation would be meaningful to FY results and investor returns. FedEx is the first major company to sue for a full tariff refund (Fortune)
• Positive Sentiment: Analysts have nudged valuations higher (Evercore and Redburn/Rothschild raised price targets), reinforcing bullish momentum and supporting the recent rally in FDX shares. Evercore raises FedEx price target (MarketScreener)
• Neutral Sentiment: Market/sector context: consumer and logistics stocks are generally stronger, helping FedEx’s technical momentum and contributing to recent outperformance. Sector update: Consumer stocks advance (Yahoo)
• Neutral Sentiment: News outlets note this lawsuit may be the start of many claims across Corporate America; the ultimate recovery size and timeline remain uncertain. Corporate America’s Growing Quest for Tariff Refunds (NYT)
• Negative Sentiment: A shipper has already sued FedEx seeking repayment of tariffs the carrier collected on small parcels, creating potential passthrough liabilities and reputational/legal friction that could offset some upside. Customer sues FedEx for refund after Supreme Court rejects Trump tariffs (Yahoo/FreightWaves)
• Negative Sentiment: Recovery is not guaranteed and could be protracted; reporting notes large aggregate exposure nationally (~$100s of billions) and policy/appeal risks that introduce execution and timing uncertainty for any cash benefits. FedEx sues US for refund on Trump’s emergency tariffs (Yahoo video/Reuters)

About FedEx

FedEx Corporation (NYSE: FDX) is a global logistics and courier company headquartered in Memphis, Tennessee. Founded by Frederick W. Smith in 1971 and beginning operations in the early 1970s, the company pioneered overnight express shipping and has since expanded into a diversified portfolio of transportation, e-commerce and supply-chain services. FedEx operates an integrated air-and-ground network that moves parcels, freight and documents for businesses and consumers worldwide.

FedEx’s core operating segments include express parcel delivery via its FedEx Express division, domestic and residential parcel delivery through FedEx Ground, less-than-truckload (LTL) freight services, and logistics and supply-chain management solutions.