Why FedEx Shares Are in the Fast Lane Today
FedEx (NYSE: FDX) has made peace with an activist investor, boosting its dividend by 53% as part of the deal. Investors are pleased, sending FedEx shares up 13% as of midday Tuesday.
FedEx was one of the stocks that benefited from the pandemic, which accelerated the trend toward home delivery. But the stock has been stuck in the doldrums of late, down more than 20% year to date heading into Tuesday trading. The company also has a new CEO, as Raj Subramaniam took over for founder Fred Smith on June 1.
One of Subramaniam's first acts as CEO was to work out a deal with hedge fund D.E. Shaw, which owns about 1 million shares of FedEx. On Tuesday, the company announced a series of changes in coordination with Shaw. including three new directors and a plan to tie executive pay to total shareholder return.
Source Fool.com
