FedEx Stock Breaks Higher After Earnings Beat

Options traders and analysts are targeting the stock after the event

Deputy Editor
Dec 17, 2021 at 10:50 AM
facebook twitter linkedin

The shares of FedEx Corporation (NYSE:FDX) are up 8.2% at $258 this morning, following the shipping company's fiscal second-quarter earnings report of $4.83 per share on $23.47 billion in revenue, which beat analysts' estimates. The firm also announced its $5 billion share buyback program, while reaffirming its 2022 full-year outlook. 

The news has several analysts coming in with bull notes. No less than six brokerages raised their price objectives, including Stephens all the way to $345 from $330. Analysts were overwhelmingly bullish heading into today, with 12 of the 16 in coverage calling it a "strong buy." Meanwhile, the 12-month consensus price target of $306.86 is a 19% premium to current levels. 

Options traders are also blasting FDX today, with 48,000 calls and 24,000 puts exchanged so far -- 11 times the intraday average. The most popular contract is the December 260 call, followed by the 250 call in the same series, with positions being opened at the former. 

When we last checked on FedEx stock, the security was extending a pullback from its late-May highs, with a rebound attempt running into pressure at the $248 level. While the stock is still sitting just below its year-to-date breakeven, it's toppled the aforementioned $248 mark, and earlier hit a three-month high of $319.90. 


Special Offers from Schaeffer's Trading Partners