Paul Walsh At FedEx Decides to Exercises Options Worth $342K

A large exercise of company stock options by Paul Walsh, Director at FedEx FDX was disclosed in a new SEC filing on July 8, as part of an insider exercise.

What Happened: In an insider options sale disclosed in a Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission, Walsh, Director at FedEx, exercised stock options for 3,610 shares of FDX. The transaction value amounted to $342,083.

FedEx shares are currently trading down by 0.77%, with a current price of $236.87 as of Wednesday morning. This brings the total value of Walsh's 3,610 shares to $342,083.

All You Need to Know About FedEx

FedEx pioneered overnight delivery in 1973 and remains the world's largest express package provider. In fiscal 2025, the firm's Federal Express segment—which houses the core package delivery operations—made up 86% of total revenue, with 10% coming from FedEx Freight, its asset-based less-than-truckload shipping segment. The remainder came from other services, including FedEx Office, which provides document production/shipping, and FedEx Logistics, which provides global forwarding. FedEx acquired Dutch parcel delivery firm TNT Express in 2016, boosting its presence across Europe. TNT was previously the fourth-largest global parcel delivery provider.

Understanding the Numbers: FedEx's Finances

Revenue Growth: FedEx's revenue growth over a period of 3 months has been noteworthy. As of 31 May, 2025, the company achieved a revenue growth rate of approximately 0.27%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Key Insights into Profitability Metrics:

• Gross Margin: With a high gross margin of 23.89%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): FedEx's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 6.92437.

Debt Management: With a high debt-to-equity ratio of 1.33, FedEx faces challenges in effectively managing its debt levels, indicating potential financial strain.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: FedEx's P/E ratio of 14.2 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.66, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): FedEx's EV/EBITDA ratio at 3.72 suggests potential undervaluation, falling below industry averages.

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

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The Importance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Cracking Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of FedEx's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.