What does the ownership structure of FedEx Corporation (NYSE: FDX) look like?
A look at the shareholders of FedEx Corporation (NYSE: FDX) can tell us which group is more powerful. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. I generally like to see some degree of insider ownership, even if it’s just a little. As Nassim Nicholas Taleb said, “Don’t tell me what you think, tell me what you have in your wallet.
FedEx has a market cap of $ 69 billion, so it’s too big to go unnoticed. We expect institutions and retail investors to own a portion of the company. Our analysis of company ownership, below, shows that institutional investors bought the company. We can zoom in on the different ownership groups to find out more about FedEx.
Check out our latest analysis for FedEx
What does institutional ownership tell us about FedEx?
Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
FedEx already has institutions on the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out FedEx’s earnings history below. Of course, the future is what really matters.
Investors should note that institutions actually own more than half of the business, so they can collectively wield significant power. We note that hedge funds do not have a significant investment in FedEx. Looking at our data, we can see that the largest shareholder is CEO Frederick Smith with 7.3% of the shares outstanding. With 6.9% and 6.6% of shares outstanding respectively, The Vanguard Group, Inc. and BlackRock, Inc. are the second and third largest shareholders.
Looking at the register of shareholders, we can see that 50% of the property is controlled by the 16 major shareholders, which means that no shareholder has a controlling interest in the property.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. There are a lot of analysts covering the stock, so you can look at expected growth quite easily.
FedEx Insider Ownership
The definition of an insider may differ slightly from country to country, but board members still count. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Shareholders would likely be interested to learn that insiders hold shares in FedEx Corporation. Insiders have a significant stake worth US $ 5.2 billion. It’s good to see this level of investment. You can check here if these insiders have bought recently.
General public property
The general public has an 18% stake in FedEx. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
I find it very interesting to see who exactly owns a company. But to really get an overview, we have to take other information into account as well. To do this, you need to know the 1 warning sign we spotted with FedEx.
Ultimately the future is the most important. You can access this free analyst forecast report for the company.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
When trading FedEx or any other investment, use the platform considered by many to be the gateway for professionals to the global market, Interactive Brokers. You get the cheapest * trading on stocks, options, futures, forex, bonds and funds from around the world from a single integrated account. Promoted
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Online Annual Review 2020
Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.