After tanking nearly 13% over the past five sessions, shares of logistics major FedEx (NYSE:FDX) are trending higher today after the company announced an accelerated share repurchase (ASR) program worth $1 billion.
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The mega stock buyback is part of FedEx’s commitment to drive capital returns for investors. The company has teamed up with Mizuho Markets Americas for the repurchases, and expects to receive an initial delivery of nearly 3.2 million shares on December 28.
The firm anticipates to receive the remaining shares, if any, no later than February 29, 2024. FedEx shares have been under pressure recently after the company’s second-quarter results fell short of expectations. The company now expects revenue for Fiscal 2024 to decline by a low mid-single-digit percentage. Additionally, its efforts to streamline costs have proved difficult amid challenging macroeconomic conditions.
Is FedEx a Buy, Sell, or Hold?
Meanwhile, Goldman Sachs’ Jordan Alliger has maintained a Buy rating on the stock alongside a $293 price target. Overall, the Street has a Strong Buy consensus rating on FedEx, and the average FDX price target of $305.65 implies a substantial 23.2% potential upside in the stock.
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