Published: Sat, February 10, 2018
Markets | By Rosalie Gross

Amazon to Roll Out UPS-Like Delivery Service

Amazon to Roll Out UPS-Like Delivery Service

Sirios Capital Management L P now owns 589,149 shares of the shipping service provider's stock valued at $132,901,000 after buying an additional 64,637 shares during the period.

Other institutional investors and hedge funds have also modified their holdings of the company.

FedEx and UPS dropped -4.38% and -3.70% respectively while Amazon fell -3.59% at the time of publishing.

Beach Investment Counsel Inc increased its stake in Fedex (FDX) by 37.49% based on its latest 2017Q3 regulatory filing with the SEC. Salem Investment Counselors Inc. now owns 479 shares of the shipping service provider's stock valued at $104,000 after purchasing an additional 13 shares during the last quarter. RNC Capital Management LLC raised its position in shares of FedEx by 0.8% during the second quarter.

Still, Amazon has no problem taking a loss on initiatives if it thinks it can capture market share in the process, so don't be surprised to see it take the same approach here. The institutional investor owned 28,659 shares of the shipping service provider's stock after acquiring an additional 571 shares during the quarter. Covington Investment Advisors Inc stated it has 1.72% of its portfolio in FedEx Corporation (NYSE:FDX). Over the last quarter, insiders sold 53,541 shares of company stock worth $13,692,142. The stock decreased 2.98% or $7.13 during the last trading session, reaching $232.14. LLC said in a note today that the retail giant is estimated to account for about 10 percent of UPS' total sales. The stock has a market cap of $63,040.00, a PE ratio of 21.63, a price-to-earnings-growth ratio of 1.47 and a beta of 1.30. The company has a debt-to-equity ratio of 0.89, a quick ratio of 1.50 and a current ratio of 1.57.

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FedEx Co. has a 12 month low of $182.89 and a 12 month high of $274.66. The firm had revenue of $16.30 billion for the quarter, compared to analyst estimates of $15.67 billion. The firm's quarterly revenue was up 9.4% on a year-over-year basis.

Several analysts recently issued reports on the stock. Even though it's been experimenting and seeing where it can really expand, the company isn't exactly ready to go head-to-head with companies like UPS and Fedex, which spend billions every year upgrading their existing networks.

An earlier report on Amazon's plan "demonstrates a lack of basic understanding of the full scale of the global transportation industry", FedEx spokesman Patrick Fitzgerald said. Citigroup boosted their target price on FedEx to $275.00 and gave the company a "buy" rating in a report on Tuesday, December 12th. Bank of America upgraded the shares of FDX in report on Wednesday, December 20 to "Buy" rating.

UPS and FedEx also consider Amazon an important customer. Read our cover story on why stocks sold off and what you should do now.

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