FedEx Corp (NYSE:FDX) stock is down 2% to trade at $237.44 at last check, after a downgrade from J.P. Morgan Securities to "neutral" from "overweight." The firm also lowered its price target to $274 from $284, with the analyst in coverage noting the high cost of separating the freight segment, as well as recent operational underperformance.
Plenty of analysts lean bullish toward FDX, with 18 of the 30 in question rating it a "buy" or better before today's adjustments. Plus, the 12-month consensus target price of $266.06 is an 11.9% premium to current levels, leaving the door wide open for more downgrades and/or price-target cuts.
FDX is pulling back from a rally to its highest level since March, with support at the 20-day moving average positioned to contain today's losses. The equity has struggled to conquer overhead pressure at the $250 level for the past several months, and now carries a 15.5% year-to-date deficit.
The options pits have been much more bearish than usual over the last 10 weeks. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 50-day put/call volume ratio of 1.03 stands higher than 99% of annual readings.
Now looks like a great time to weigh in with options. This is per the equity's Schaeffer's Volatility Index (SVI) of 28% that sits in the 13th percentile of annual readings, indicating options traders are pricing in low volatility expectations.
