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FedEx stock ended 2019 in the red, but as the year was coming to a close, one director at the logistics giant was scooping up stock.
FedEx stock (ticker: FDX) closed at $151.21 on Dec. 31 for a 6.3% loss for the year. Earnings and guidance disappointments have weighed on shares, as the company blamed “a weakening global macro environment driven by increasing trade tensions and policy uncertainty.” FedEx stock tumbled on Dec. 18, closing 10% lower after the company’s fiscal-second-quarter report let down investors.
With the latest drop, we suggested buying FedEx stock.
John Edwardson, a FedEx director, did exactly that. He paid $1.5 million on Dec. 20 for 10,000 FedEx shares, a per-share average price of $148.22. Edwardson, a former CEO of technology products and services firm CDW, now owns 77,966 FedEx shares, according to a form he filed with the Securities and Exchange Commission.
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Edwardson was also buying stock a month earlier, also paying $1.5 million over Oct. 31 and Nov. 1 for a total of 10,000 shares, an average price of $154.13 each. He has been a FedEx director since 2003 and these latest stock purchases are his first since October 2008, according to SEC records.
His two transactions are also the largest in volume and value by a FedEx executive or director since at least July 2006, according to S&P Capital IQ.
FedEx declined to make Edwardson available for comment on his recent stock purchases.
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at edward.lin@barrons.com and follow @BarronsEdLin.