FedEx shows you how to raise the stock in two simple steps
Those decisions by the way FedEx (FDX) In recognition of one of the first major strategic moves by new CEO Raj Subramaniam, he was taken over by longtime FedEx chief (and founder) Fred Smith. Smith is stuck as executive chairman.
“Through decades of investments, innovation and expertise, we have built a global portfolio that serves as the foundation of our competitive advantage. A statement.
FedEx was pressured by DE Shaw Group, an activist investor with a small stake in the company, to make some changes.
Dividend Boost should address some of DE Shaw’s concerns, like FedEx’s decision to change its bonus plan to reward executives for reducing capital expenditures to increase earnings.
“The high dividend we announced is the culmination of our board’s many months of thoughtful efforts to ensure that our portfolio sharing strategy reflects our confidence in the business path,” FedEx Chief Financial Officer Michael Lenz said in a statement.
As part of a deal with DE Shaw, FedEx veteran retail investment banker Amy Lane and former Union Pacific (UNP) And National Railway of Canada (CNI) Executive Jim Vena to its board. FedEx and DE Shaw said a third independent board of directors “mutually agreed” by the two firms would be added at a later date.
“We applaud the constructive approach taken by the Raj and FedEx Board of Directors.
Solid shipping demand is a big boost for FedEx
So what’s next for FedEx? The company, which has been a beneficiary of the online shopping demand boom during the epidemic, reported its latest quarterly results after Thursday’s closing hour. Analysts expect a 37% jump in earnings and more than 8% increase in sales in the quarter.
For the full year, Wall Street predicts a 13% gain in profits and an 11% jump in revenues. Rival UPS (UPS)By comparison, it is forecast to post earnings and sales increases of just 5% from a year ago.
FedEx will host an Analyst’s Day presentation and another gathering for investors next week. One analyst praised FedEx’s recent move and argued that they should help boost earnings in the long run.
“The [new] Directors … add to Vena’s experience of rail operations and the meaningful credibility given the lane’s economic acumen, “City analyst Christian Weatherbee said in the report, adding that there is” a solid upside “in the stock than last week’s pop.
FedEx shares are down nearly 11% so far in 2022, but the UPS is not bad enough to plunge more than 20% to a 19% decline and broader. Dow Jones Transportation Average (DJT)FedEx is a component in this.
Many of Weatherbee’s friends are bullish about FedEx: 24 of 31 analysts who follow the company have a “buy” recommendation, according to Refinitive. The remaining seven rate FedEx a “hold.” And the consensus price target for FedEx shares is just north of $ 287, more than 25% above its current price.
