Insider Activity Report: FedEx (FDX)

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Amy Lane, a director at FedEx (FDX), recently bought 200 shares. The buy increased her holdings by 6 percent, and came to a total cost of $50,643.

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  • This is the first insider buy at FedEx since April, when another company director bought 1,080 shares, paying just over $249,000. Otherwise, a few company insiders have been sellers over the past year, entirely following the exercise of stock options.

    Overall, FedEx insiders own 8 percent of shares.

    The logistics and freight shipping company soared over 40 percent last year, coming off a brutal bear market.

    Shares are still sensitive to the current economic environment, where consumers are more focused on spending their money on experiences rather than goods.

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  • That’s reflected in the company’s 10 percent drop in earnings growth last year, even as revenues rose by 14 percent, aided by higher prices.

    Action to take: FedEx is a crucial company and still more than 10 percent off its recent highs. Shares are worth buying in the low $250 range or lower as a long-term holding.

    FedEx pays a 2 percent dividend at current prices, and has a history of increasing its payout over time.

    For traders, the current uptrend is likely to continue. The March $280 calls, last going for about $2.30, could see mid-double-digit returns from a further move higher.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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