FedEx Stock Downgraded on Operational Underperformance

Core Viewpoint - FedEx Corp's stock has declined by 2% to $237.44 following a downgrade from J.P. Morgan Securities, which changed its rating from "overweight" to "neutral" and reduced the price target from $284 to $274, citing high costs associated with separating the freight segment and recent operational underperformance [1] Group 1: Analyst Ratings and Price Targets - Despite the downgrade, 18 out of 30 analysts still rate FedEx as a "buy" or better, with a 12-month consensus target price of $266.06, representing an 11.9% premium over current levels, indicating potential for further downgrades or price-target cuts [2] - FedEx has faced challenges in overcoming resistance at the $250 level for several months, currently showing a 15.5% year-to-date deficit [3] Group 2: Market Sentiment and Options Activity - The options market has exhibited a more bearish sentiment than usual over the past 10 weeks, with a 50-day put/call volume ratio of 1.03, which is higher than 99% of annual readings [4] - The current Schaeffer's Volatility Index (SVI) for FedEx is at 28%, placing it in the 13th percentile of annual readings, suggesting that options traders are anticipating low volatility [5]