CNBC Investing Club Downgrades FedEx Freight to 2 After Shares Top $175 Target

1 articles · Updated · CNBC · Jun 9

FedEx Freight was cut to a 2 rating after its post-spin rally pushed shares well beyond the club’s initial $175 target, leaving managers unwilling to chase the stock higher.
FedEx’s board also approved a 5% annual dividend increase tied to the June 1 freight spin, setting a new quarterly payout at $1.22 versus $1.45 in April.
The club said the lower headline payout does not materially change the stock’s income profile, with the yield still near 1.5%, roughly in line with the 1.55% yield when it began buying in May.
Managers said they still want to add to both FedEx and FedEx Freight on weakness, while broader market selling in stretched AI names and Wednesday’s CPI report could shape a better entry point.