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Frederick W. Smith, the Executive Chairman of FedEx Corp. (NYSE:FDX), recently executed a series of stock transactions, according to a regulatory filing. On April 11, Smith sold shares of FedEx common stock totaling approximately $25.1 million. The sales occurred at prices ranging from $201.71 to $207.25 per share, with the stock currently trading near its 52-week low of $194.29.
In addition to the sales, Smith exercised stock options to acquire 132,520 shares at a price of $180.82 per share, a transaction valued at approximately $23.96 million. After these transactions, Smith’s direct ownership stands at 14,289,514 shares. These moves come as management has been actively buying back shares, according to InvestingPro data.
These transactions are part of Smith’s ongoing management of his holdings in the company he founded. FedEx, based in Memphis, Tennessee, is a global leader in transportation and logistics services, with a market capitalization of nearly $50 billion. The company has maintained dividend payments for 24 consecutive years, currently yielding 2.66%.
In other recent news, FedEx has reported its third-quarter fiscal 2025 earnings, with an adjusted earnings per share (EPS) of $4.51, slightly below the consensus estimate of $4.56. Despite this, the company exceeded revenue expectations, driven by strong performance in the Express and Ground segments. However, FedEx has revised its full-year EPS guidance downward to a range of $18.00 to $18.60, citing softer revenue and persistent cost inflation. Analysts from several firms have adjusted their price targets for FedEx, with JPMorgan lowering it to $280, Stephens to $300, Stifel to $354, Evercore ISI to $276, and Raymond (NSE:RYMD) James to $290, while maintaining positive ratings on the stock.
FedEx’s strategic initiatives, such as the DRIVE program and Network 2.0, are expected to yield significant cost savings and operational improvements. The company has realized $600 million in cost savings during the third quarter and is on track to meet its annual target of $2.2 billion. Additionally, FedEx plans to spin off its less-than-truckload (LTL) business, which is anticipated to bring further value to the company. Analysts have noted that while FedEx faces challenges, its transformative initiatives and strategic decisions could enhance margins and financial performance in the future. These developments are being closely watched by investors, particularly regarding the company’s ability to navigate economic headwinds and execute its strategic plans effectively.
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