FedEx Corp (NYSE:FDX) President and CEO Rajesh Subramaniam has recently engaged in significant trading of company stock, according to the latest SEC filings. Subramaniam sold a total of 18,384 shares of common stock at a weighted average price of approximately $274.55, amounting to over $5 million in total value.
The transactions took place on April 5, 2024, and were part of a series of trades that included both acquisitions and dispositions of FedEx shares. The sales occurred in multiple transactions with prices ranging from $274.50 to $274.74. Following the sale, Subramaniam's holdings in FedEx common stock decreased to 55,487 shares.
On the same day, the CEO also acquired shares through the exercise of options. The transactions involved two separate option exercises: one for 13,425 shares with a price of $143.55 per share, and another for 11,155 shares at $180.82 per share. The total value for these option exercises amounted to approximately $3.94 million, reflecting the combined exercise prices.
These stock options were part of a compensation package and are designed to vest over four years, with the first tranche becoming exercisable one year from the date of grant. This encourages executives like Subramaniam to align their interests with those of the shareholders and the long-term success of the company.
Investors often monitor the trading activity of top executives as it can provide insights into their perspective on the company's future performance. The recent filings indicate a balance of both liquidity and continued investment by the CEO in FedEx, suggesting a level of confidence in the company's ongoing strategies and growth potential.
FedEx has not released any official statement regarding these transactions, and as per standard practice, the reporting person has committed to providing full information regarding the sales upon request by FedEx Corporation (NYSE:FDX), any security holder, or the SEC staff.
InvestingPro Insights
As FedEx Corp's (NYSE:FDX) President and CEO Rajesh Subramaniam demonstrates an active engagement with his company's stock, it's insightful to consider the broader financial context in which these transactions occur. The InvestingPro data indicates a robust market capitalization of $67.44 billion for FedEx, supported by a price-to-earnings (P/E) ratio of 15.55. This P/E ratio has been adjusted to 13.8 based on the last twelve months as of Q3 2024, which underscores the company's earnings relative to its share price. Moreover, FedEx's price-to-earnings-growth (PEG) ratio during the same period stands at an attractive 0.31, suggesting that the stock may be undervalued relative to its earnings growth potential.
From an operational standpoint, FedEx has demonstrated a solid gross profit margin of 27.65% over the last twelve months as of Q3 2024, with an operating income of approximately $7.005 billion, reflecting efficient management and a competitive edge in its industry. Despite a revenue decline of 5.51% over the last twelve months, the company's dividend growth of 9.57% during the same period is noteworthy. This aligns with the InvestingPro Tip that FedEx has successfully raised its dividend for 3 consecutive years and has maintained dividend payments for 23 consecutive years, emphasizing its commitment to shareholder returns.
When considering the investment landscape for FedEx, InvestingPro Tips further reveal that 13 analysts have revised their earnings estimates downwards for the upcoming period. Nonetheless, FedEx remains a prominent player in the Air Freight & Logistics industry and is predicted to be profitable this year, as evidenced by its profitability over the last twelve months. The company's stock generally trades with low price volatility, which may appeal to investors seeking stable investment options.
For readers interested in a deeper analysis and more InvestingPro Tips, you can explore additional insights at https://www.investing.com/pro/FDX. With 7 additional tips available, there's a wealth of information to help guide your investment decisions. Don't forget to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to enrich your investment strategy with InvestingPro.
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