R. Brad Martin, a director at FedEx Corp (FDX), recently picked up 1,500 shares. The buy increased his holdings by 2.2 percent, and came to a total price of just over $215,000.
This is the first buy at the global logistics provider since the summer, when another company director picked up 900 shares in July and a third director bought 607 shares in June. Otherwise, company executives have been regular sellers of shares.
Overall, insiders at the company own about 7.7 percent of shares.
The stock has shed 34 percent of its value in the past year, much of that recently as the company has warned on earnings and global shipping in the quarters ahead.
However, even with a decline already, revenue is up 6 percent in the past year. And the decline in shares price has taken the stock to under 9 times forward earnings.
Action to take: Shares are worth buying at this steep of a discount to last year’s peak. The company is a global leader in shipping and logistics and will rebound with the economy in time. The stock also pays a growing dividend and yields about 3.1 percent to start at current prices.
For traders, the March 2023 $190 calls, last going for about $4.30, offer mid-to-high double-digit returns. They may drop in price in the coming weeks with the overall market weakness, so traders may want to scale into the trade.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.