FedEx to buy back 15 million shares
10-01-2014, 08:35 AM
#12
Line Holder
Joined APC: Jul 2007
Posts: 83
Originally Posted by Full pull
Somebody explain, I don't get stock buy backs. That's several years of profit, why not increase the dividend instead?
Some feel management does it to hide money.
I think it's simply taking from the shareholders, using their money to decrease the outstanding shares, increasing E.P.S. Management meets their quotas, and as a result they, the few who deserve it, receive their hard earned bonuses. Why give it to everyone?
10-01-2014, 08:50 AM
#13
Gets Weekends Off
Joined APC: Nov 2012
Position: ERJ, CA
Posts: 718
One reason to do it is to raise the price of the shares. If they buyback the shares, there are fewer shares on the market, therefore the price/share increases. And guess what, executive compensation is tied to the share price. It is a game they all are playing.
Companies' Stock Buybacks Help Buoy the Market - WSJ
Companies' Stock Buybacks Help Buoy the Market - WSJ
10-01-2014, 10:25 AM
#15
Banned
Joined APC: Dec 2009
Position: Narrow/Left Wide/Right
Posts: 3,655
Also I believe buy backs are pretax. Dividends are post tax so theoretically more bang from buck. Always looking to improve eps. Dividends go on top as earnings. #of shares outstanding go on bottom.
10-01-2014, 01:59 PM
#16
Gets Weekends Off
Joined APC: Sep 2006
Posts: 1,336
Originally Posted by Commando
Don't Take this the Wrong way. I'm sure it will come across that way. But many here at UPS don't want you to settle "soon". Sorry.
Your Low expectations and "in-line" demands are not what your peers want you to achieve. To many up North here, the View is that you guys are not assertive enough, not even close.
Wake up and demand Very large improvements. Remember, 11 years ago. Yes, 11 years ago UAL and DL Widebody pay was $318.00 an Hour. Add 11 years of inflation to that and that's the number "we" need to be at. Lord knows our companies can afford it. Easily.
Your Low expectations and "in-line" demands are not what your peers want you to achieve. To many up North here, the View is that you guys are not assertive enough, not even close.
Wake up and demand Very large improvements. Remember, 11 years ago. Yes, 11 years ago UAL and DL Widebody pay was $318.00 an Hour. Add 11 years of inflation to that and that's the number "we" need to be at. Lord knows our companies can afford it. Easily.
Perhaps we can learn some assertiveness from the guys that left their new hires on the street while your management hired management pilots. We may do a lot of things wrong, and 4A2B hurt me pretty bad, but we didn't put anyone out. Sounds pretty weak to be depending on us. Perhaps you could use some assertiveness yourself......How bout you mind your business and you let us mind ours.
10-02-2014, 04:15 AM
#17
Gets Weekends Off
Joined APC: Jul 2007
Position: Gear Monkey
Posts: 3,191
Look who's "selling" as the company is "buying"
Hmmmm...
Insider Selling: FedEx CEO Unloads 44,786 Shares of Stock (FDX)
October 1st, 2014
FedEx (NYSE:FDX) CEO David J. Bronczek sold 44,786 shares of the company's stock in a transaction dated Tuesday, September 30th.
The shares were sold at an average price of $163.14, for a total transaction of $7,306,388.04.
Following the completion of the transaction, the chief executive officer now directly owns 67,138 shares of the company's stock, valued at approximately $10,952,893.
The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.
A number of analysts have recently weighed in on FDX shares.
Analysts at Citigroup Inc. reiterated a "buy" rating on shares of FedEx in a research note on Tuesday.
They now have a $190.00 price target on the stock, up previously from $180.00.
Separately, analysts at Cowen and Company upgraded shares of FedEx from a "market perform" rating to an "outperform" rating in a research note on Monday.
They now have a $210.00 price target on the stock, up previously from $155.00.
Finally, analysts at Wolfe Research upgraded shares of FedEx from a "market perform" rating to an "outperform" rating in a research note on Thursday, September 18th.
Seven analysts have rated the stock with a hold rating, eleven have given a buy rating and two have given a strong buy rating to the stock.
The company has an average rating of "Buy" and a consensus target price of $162.53.
Shares of FedEx (NYSE:FDX) traded down 2.05% on Wednesday, hitting $158.14.
The stock had a trading volume of 2,429,562 shares.
FedEx has a 52 week low of $111.25 and a 52 week high of $163.84.
The stock's 50-day moving average is $153.2 and its 200-day moving average is $145.0.
The company has a market cap of $44.793 billion and a price-to-earnings ratio of 22.09.
Hmmmm...
Insider Selling: FedEx CEO Unloads 44,786 Shares of Stock (FDX)
October 1st, 2014
FedEx (NYSE:FDX) CEO David J. Bronczek sold 44,786 shares of the company's stock in a transaction dated Tuesday, September 30th.
The shares were sold at an average price of $163.14, for a total transaction of $7,306,388.04.
Following the completion of the transaction, the chief executive officer now directly owns 67,138 shares of the company's stock, valued at approximately $10,952,893.
The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.
A number of analysts have recently weighed in on FDX shares.
Analysts at Citigroup Inc. reiterated a "buy" rating on shares of FedEx in a research note on Tuesday.
They now have a $190.00 price target on the stock, up previously from $180.00.
Separately, analysts at Cowen and Company upgraded shares of FedEx from a "market perform" rating to an "outperform" rating in a research note on Monday.
They now have a $210.00 price target on the stock, up previously from $155.00.
Finally, analysts at Wolfe Research upgraded shares of FedEx from a "market perform" rating to an "outperform" rating in a research note on Thursday, September 18th.
Seven analysts have rated the stock with a hold rating, eleven have given a buy rating and two have given a strong buy rating to the stock.
The company has an average rating of "Buy" and a consensus target price of $162.53.
Shares of FedEx (NYSE:FDX) traded down 2.05% on Wednesday, hitting $158.14.
The stock had a trading volume of 2,429,562 shares.
FedEx has a 52 week low of $111.25 and a 52 week high of $163.84.
The stock's 50-day moving average is $153.2 and its 200-day moving average is $145.0.
The company has a market cap of $44.793 billion and a price-to-earnings ratio of 22.09.
10-02-2014, 07:53 AM
#18
Gets Weekends Off
Joined APC: Jan 2010
Posts: 176
Why Buy Back Stock?
I'm not sure about the tax implications for the company, but for shareholders, a stock buy back has no immediate tax consequences, while an increased dividend would be taxed in the year paid. Theoretically, each share of stock would increase in price proportionally to the greater share of the company that it now represents following the buy back. In reality, stock prices are not that logical.
If I remember the numbers from the most recent financials, this buyback represents about 5% of the outstanding shares.
If I remember the numbers from the most recent financials, this buyback represents about 5% of the outstanding shares.
10-02-2014, 08:23 AM
#19
Line Holder
Joined APC: Aug 2006
Position: Between a rock and a hard place
Posts: 92
DJB may have sold now in order to have the company pay the taxes on it. There was a shareholder motion at the last shareholders meeting to do away with this perk. Maybe he expects it to pass at a later date.
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