FedEx (NYSE:FDX) Sees 12% Weekly Drop Following Major Buyback Completion

FedEx (NYSE:FDX) recently completed a significant tranche of its buyback program, repurchasing 1.8 million shares between December 2024 and March 2025. This commitment to returning value to shareholders comes against a backdrop of broader market challenges, including the recent sell-off triggered by Trump's tariff announcements. Major indices like the Dow and Nasdaq saw substantial declines of 4% to 5%, influencing the transport sector, where FedEx operates. Consequently, FedEx's shares dropped by 11.5% over the past week, reflecting both its buyback strategy and market-driven pressures from heightened economic uncertainty.

Buy, Hold or Sell FedEx? View our complete analysis and fair value estimate and you decide.

Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.

Over the past five years, FedEx's shareholders have enjoyed a total return of 92.76%, driven by a combination of share price appreciation and dividends. Several key initiatives have contributed to this performance. The company's cost-saving measures, such as the DRIVE and Network 20 projects, have bolstered FedEx's global efficiencies and improved margins. Additionally, the acquisition of RouteSmart Technologies has enhanced FedEx's route optimization capabilities.

FedEx's performance was particularly strong relative to the US Logistics industry, which experienced a significant downturn over the last year. Moreover, the company's consistent dividend payouts, including a notable increase announced in June 2024, have further supported shareholder returns. Meanwhile, the spin-off plans for FedEx's freight trucking division may have added complexity to the corporate structure, but the overall impact on long-term returns remains part of a broader growth strategy.

Our expertly prepared valuation report FedEx implies its share price may be lower than expected.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com