Stifel Nicolaus Downgrades FedEx to Hold

By Jason Carr

Stifel Nicolaus analyst David Ross downgraded FedEx (NYSE: FDX) to Hold today and set a price target of $186. The company’s shares closed yesterday at $186.16, close to its 52-week high of $186.53.

According to, Ross is a 5-star analyst with an average return of 18.0% and a 73.2% success rate. Ross covers the Services sector, focusing on stocks such as Air Transport Services, Old Dominion Freight, and Roadrunner Transp.

FedEx has an analyst consensus of Strong Buy, with a price target consensus of $196.

Based on FedEx’s latest earnings report for the quarter ending August 31, the company posted quarterly revenue of $14.66 billion and quarterly net profit of $714 million. In comparison, last year the company earned revenue of $12.28 billion and had a net profit of $691 million.

Based on the recent corporate insider activity of 36 insiders, corporate insider sentiment is negative on the stock. Earlier this month, John Merino, the CVP PRIN ACCT OFFICER of FDX sold 10,280 shares for a total of $1,868,082.

FedEx Corp. provides a broad portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the FedEx brand. It operates through four segments: FedEx Express, FedEx Ground, FedEx Freight and FedEx Services. The FedEx Express segment offers time-certain delivery to more than 220 countries and territories. This segment also includes FedEx Trade Networks, Inc., which provides international trade services, specializing in customs brokerage and global ocean and air freight forwarding; and FedEx SupplyChain Systems, Inc., which offers a range of supply chain solutions. The FedEx Ground segment includes FedEx Ground Package System, Inc., which provides small-package ground delivery services. This segment also includes FedEx SmartPost, Inc., which specializes in the consolidation and delivery of low-weight, less time-sensitive business-to-consumer packages using the U.S. Postal Service for final delivery. The FedEx Freight segment includes FedEx Freight, Inc., which provides less-than-truckload freight services across all lengths of haul, offering. This segment offers freight delivery service to most points in Canada, Mexico, Puerto Rico and the U.S. Virgin Islands and includes FedEx Custom Critical, Inc., which is a provider of time-specific, critical shipment services. The FedEx Services segment includes FedEx Corporate Services, Inc., which provides sales, marketing, information technology, communications and back-office support to other companies in the FedEx Group. This segment also includes FedEx TechConnect, Inc., which is responsible for customer service, billings and collections for its U.S. customers and offers technical support services; and FedEx Office & Print Services, Inc., which provides document and business services and retail access to its package transportation businesses. The company was founded by Frederick Wallace Smith on June 18, 1971 and is headquartered in Memphis, TN.