Robeco Reduces FedEx Holdings by 29.2% Amid Market Adjustments

Robeco Institutional Asset Management B.V. has significantly decreased its stake in FedEx Corporation (NYSE: FDX) by 29.2% during the third quarter of 2023. According to its latest filing with the U.S. Securities and Exchange Commission, the firm now holds 47,819 shares of the shipping giant, having sold 19,742 shares within this period. As of the end of September, Robeco’s holdings in FedEx were valued at approximately $11,276,000.

This adjustment is part of a broader trend, with several institutional investors also modifying their positions in FedEx. For instance, Brighton Jones LLC increased its stake by 12.8% in the fourth quarter, now owning 1,825 shares valued at $514,000. In a more aggressive move, Empowered Funds LLC raised its holdings by 78.9% in the first quarter, bringing its total to 10,311 shares worth $2,514,000 after acquiring an additional 4,548 shares.

Integrity Alliance LLC’s actions were even more pronounced, boosting its position by an impressive 435.8% during the same quarter, now controlling 5,374 shares valued at $1,310,000. Geneos Wealth Management Inc. and Acadian Asset Management LLC also reported increases of 9.2% and 34.8%, respectively, reflecting a strong interest among institutional players in the company. Currently, institutional investors own 84.47% of FedEx stock.

FedEx Performance and Market Response

Shares of FedEx opened at $312.18 on the most recent trading day, with the company boasting a market capitalization of $73.40 billion. The stock has a price-to-earnings (P/E) ratio of 17.21 and a P/E/G ratio of 1.54, indicating a relatively stable valuation in the current market. Over the past year, FedEx’s stock has fluctuated, reaching a low of $194.29 and a high of $318.83.

The company also maintains a quick ratio of 1.23 and a current ratio of 1.27, which suggests it has sufficient liquidity to meet its short-term obligations. Additionally, FedEx has a debt-to-equity ratio of 0.72, highlighting a balanced approach to leveraging.

Dividend Announcement and Analyst Ratings

Recently, FedEx announced a quarterly dividend of $1.45 per share, which was paid on January 6, 2024. Shareholders of record on December 15, 2023 received this dividend, marking an annualized yield of 1.9%. The company’s dividend payout ratio is currently reported at 31.97%, reflecting a commitment to returning value to shareholders.

Recent analyst reports have also been favorable towards FedEx. TD Cowen raised its target price from $271.00 to $313.00, maintaining a “buy” rating. Similarly, Jefferies Financial Group increased its target from $315.00 to $326.00. Citigroup and JPMorgan Chase & Co. have also adjusted their price objectives upwards, indicating growing confidence in FedEx’s market position.

As of now, the consensus rating for FedEx is categorized as “Moderate Buy,” with one analyst recommending a Strong Buy, seventeen advocating for a Buy, eleven recommending Hold, and two suggesting Sell. According to data from MarketBeat.com, the average target price stands at $303.16, suggesting potential for future growth.

FedEx Corporation, headquartered in Memphis, Tennessee, has been a pioneer in global logistics since its inception in 1971. Known for revolutionizing overnight shipping, the company now offers a comprehensive range of transportation, e-commerce, and supply-chain solutions worldwide, operating through its various divisions including FedEx Express and FedEx Ground.

For those interested in tracking ongoing changes in FedEx’s institutional holdings, HoldingsChannel.com provides the latest 13F filings and insider trades related to the company.