FedEx: 3 Different Insiders Have Sold Shares During The Last 30 Days

Apr.27.14 | About: FedEx Corporation (FDX)


3 insiders sold FedEx stock within one month.

The stock was not purchased by any insiders in the month of intensive selling.

2 of these 3 insiders decreased their holdings by more than 10%.

FedEx Corporation (NYSE:FDX) provides transportation, e-commerce, and business services in the United States and internationally.

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Insider selling during the last 30 days

Here is a table of FedEx' insider activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
William Logue President, Freight April 24 17,856 No 30,167 shares + 11,300 options 30.1%
Frederick Smith CEO April 21 236,900 No 19,593,445 shares 1.2%
John Merino PAO March 31 18,210 No 22,718 shares 44.4%
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There have been 272,966 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of FedEx' insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
April 2014 254,756 0
March 2014 18,210 0
February 2014 0 0
January 2014 14,833 0
December 2013 78,700 0
November 2013 0 0
October 2013 12,920 0
September 2013 8,842 0
August 2013 71,328 0
July 2013 37,570 0
June 2013 7,000 0
May 2013 31,591 0
April 2013 212,042 0
March 2013 0 0
February 2013 17,810 0
January 2013 0 0
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There have been 765,602 shares sold, and there have been zero shares purchased by insiders since January 2013. The month of April 2014 has seen the most insider selling.


FedEx reported the fiscal 2014 third-quarter, which ended February 28, financial results on March 19 with the following highlights:

Revenue $11.3 billion
Net income $378 million
Cash $3.0 billion
Debt $4.7 billion
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The three insiders sold their shares after these results.


FedEx projects earnings to be $2.25 to $2.50 per diluted share in the fourth quarter and $6.55 to $6.80 per diluted share for fiscal 2014.


FedEx' competitors include United Parcel Service (NYSE:UPS). Here is a table comparing these two companies.

Company FDX UPS
Market Cap: 39.66B 89.89B
Employees: 244,300 213,210
Qtrly Rev Growth (yoy): 0.03 0.03
Revenue: 45.16B 55.44B
Gross Margin: 0.26 0.26
EBITDA: 5.92B 8.86B
Operating Margin: 0.08 0.13
Net Income: 1.67B 4.37B
EPS: 5.28 4.61
P/E: 25.43 21.13
PEG (5 yr expected): 1.30 1.73
P/S: 0.89 1.64
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FedEx has a higher P/E ratio than United Parcel Service. In United Parcel Service, there have been 13,709 shares sold and there have been zero shares purchased by insiders this year. Only FedEx has seen intensive insider selling during the last 30 days.


There have been three different insiders selling FedEx, and there have not been any insiders buying FedEx during the last 30 days. Two of these three insiders decreased their holdings by more than 10%. FedEx has an insider ownership of 6.45%.

Before going short FedEx, I would like to get a bearish confirmation from the Point & Figure chart. The two main reasons for the proposed short entry are a relatively high P/E ratio, and the intensive insider-selling activity.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.