FedEx Corporation (NYSE:FDX) provides transportation, e-commerce, and business services in the United States and internationally.
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%|
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|
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:
|Net income||$378 million|
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.
|Qtrly Rev Growth (yoy):||0.03||0.03|
|PEG (5 yr expected):||1.30||1.73|
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.