FedEx Corporation (FDX) said on Thursday that it intended to purchase Manton Air-Sea Pty Ltd, which provides a range of logistics services, including freight forwarding and customs brokerage solutions.
Having its headquarters based in Sydney, Manton will become a subsidiary of the FedEx Trade Networks operating company.
FedEx shares closed lower for a second consecutive trading session in New York on Thursday. It has also been the steepest daily loss since October 10th. The stock went down 2.76% ($6.17) to $217.29, after touching an intraday low at $216.09, or a price level not seen since November 20th 2017 ($216.05).
Shares of FedEx Corporation have retreated 12.92% so far in 2018 compared with a 3.56% gain for the underlying index, S&P 500 (SPX).
In 2017, FedEx Corp’s stock surged 34.02%, thus, it outperformed the S&P 500, which registered a 19.42% return.
Having operations across Australia, Manton Air-Sea Pty Ltd uses regional gateways as well as relationships with a number of air carriers to connect clients to global markets.
“Adding Manton’s capabilities to FedEx Trade Networks and the broader FedEx portfolio will open up opportunities for us to continue to expand in Australia, a country with a strong GDP and a significant market in the Asia Pacific region,” Richard Smith, President and Chief Executive of FedEx Trade Networks, said in a statement.
“We look forward to potential business opportunities through the collaboration between Manton and FedEx Trade Networks with the FedEx Express and TNT presence in Asia Pacific and Australia. We are delighted to add the Manton team members to the FedEx family of companies and combine the talents of both teams to contribute to our continued success,” Smith added.
Subject to customary closing conditions, the deal is to be finalized later in 2018.
According to CNN Money, the 26 analysts, offering 12-month forecasts regarding FedEx Corporation’s stock price, have a median target of $291.50, with a high estimate of $360.00 and a low estimate of $242.00. The median estimate represents a 34.15% upside compared to the closing price of $217.29 on October 18th.
The same media also reported that 21 out of 29 surveyed investment analysts had rated FedEx Corporation’s stock as “Buy”, while 3 – as “Hold”.
Weekly Pivot Levels
By using the traditional method of calculation, the weekly levels of importance for FedEx Corporation (FDX) are presented as follows:
Central Pivot Point – $225.47
R1 – $234.13
R2 – $247.26
R3 – $255.92
R4 – $264.58
S1 – $212.34
S2 – $203.68
S3 – $190.55
S4 – $177.42
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