Fintel reports that on September 29, 2023, HSBC initiated coverage of Fedex (NYSE:FDX) with a Buy recommendation.
Analyst Price Forecast Suggests 0.37% Upside
As of August 31, 2023, the average one-year price target for Fedex is 267.42. The forecasts range from a low of 181.80 to a high of $325.50. The average price target represents an increase of 0.37% from its latest reported closing price of 266.44.
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The projected annual revenue for Fedex is 97,098MM, an increase of 9.60%. The projected annual non-GAAP EPS is 18.05.
Fedex Declares $1.26 Dividend
On August 18, 2023 the company declared a regular quarterly dividend of $1.26 per share ($5.04 annualized). Shareholders of record as of September 11, 2023 will receive the payment on October 2, 2023. Previously, the company paid $1.26 per share.
At the current share price of $266.44 / share, the stock's dividend yield is 1.89%.
Looking back five years and taking a sample every week, the average dividend yield has been 1.60%, the lowest has been 0.83%, and the highest has been 3.22%. The standard deviation of yields is 0.53 (n=236).
The current dividend yield is 0.56 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.30. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.94%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 2456 funds or institutions reporting positions in Fedex. This is an increase of 36 owner(s) or 1.49% in the last quarter. Average portfolio weight of all funds dedicated to FDX is 0.46%, an increase of 1.37%. Total shares owned by institutions increased in the last three months by 0.38% to 215,158K shares. 
The put/call ratio of FDX is 1.15, indicating a bearish outlook.
What are Other Shareholders Doing?
Dodge & Cox holds 14,854K shares representing 5.91% ownership of the company. In it's prior filing, the firm reported owning 16,885K shares, representing a decrease of 13.67%. The firm decreased its portfolio allocation in FDX by 6.53% over the last quarter.
Primecap Management holds 13,183K shares representing 5.24% ownership of the company. In it's prior filing, the firm reported owning 13,569K shares, representing a decrease of 2.93%. The firm increased its portfolio allocation in FDX by 1.01% over the last quarter.
DODGX - Dodge & Cox Stock Fund holds 9,765K shares representing 3.88% ownership of the company. In it's prior filing, the firm reported owning 10,797K shares, representing a decrease of 10.57%. The firm decreased its portfolio allocation in FDX by 5.92% over the last quarter.
VPMCX - Vanguard PRIMECAP Fund Investor Shares holds 8,573K shares representing 3.41% ownership of the company. In it's prior filing, the firm reported owning 8,813K shares, representing a decrease of 2.80%. The firm increased its portfolio allocation in FDX by 1.58% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 7,051K shares representing 2.80% ownership of the company. In it's prior filing, the firm reported owning 7,020K shares, representing an increase of 0.44%. The firm increased its portfolio allocation in FDX by 0.54% over the last quarter.
Fedex Background 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 offers integrated business solutions through operating companies competing collectively, operating collaboratively and innovating digitally under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its nearly 600,000 team members to remain focused on safety, the highest ethical and professional standards and the needs of their customers and communities.
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