FedEx (FDX) Shares Plunge 3.49% Amid Trade Uncertainty

FedEx (FDX) shares plunged 3.49% today, marking the fourth consecutive day of decline, with a cumulative drop of 19.21% over the past four days. The stock price hit its lowest level since March 2023, experiencing an intraday decline of 4.73%.

One of the primary factors contributing to the recent decline in FedEx's stock price is the impact of President Trump's announcement of "reciprocal tariffs" on all US goods. This geopolitical and trade policy change has significantly affected FedEx's stock, leading to a 12.2% drop in shares. The uncertainty surrounding international trade and potential retaliatory measures has created a challenging environment for FedEx, which relies heavily on global shipping and logistics services.

Despite the recent downturn, Deutsche Bank has maintained a Buy rating for FedEx with a price target of $337.00. This positive analyst sentiment suggests that there is potential for future growth, even amidst current market volatility. The rating reflects confidence in FedEx's long-term prospects and its ability to navigate through short-term challenges.

Another factor influencing FedEx's stock performance is the underperformance of its LTL unit, FedEx Freight. The unit reported a 5.3% year-over-year decrease in revenue for the fiscal quarter ended February 28. This lackluster performance has contributed to negative sentiment around FedEx's overall stock performance, as investors reassess the company's financial health and growth prospects.

Technical indicators also suggest a bearish sentiment in the market for FedEx's stock. Currently, the stock is trading below both its 50-day and 200-day moving averages, indicating a potential downward trend. This technical analysis aligns with the recent price movements and reinforces the negative sentiment surrounding the stock.

Additionally, Clarkston Capital Partners LLC reduced its position in FedEx shares by 1.6% in the fourth quarter. This adjustment in investment strategy may have influenced investor sentiment and contributed to the recent decline in stock price. The reduction in holdings by a significant investor can signal a lack of confidence in the company's near-term prospects, further impacting market sentiment.