FedEx stock rises after setting $1.5 billion accelerated repurchase agreement

Shares of FedEx Corp. climbed 3.0% in premarket trading Tuesday, after the package delivery giant announced a $1.5 billion accelerated share repurchase (ASR) agreement with Morgan Stanley. The ASR, which represents 3.8% of FedEx’s market capitalization of $39.41 billion as of Monday’s close, is expected to be completed before the end of the fiscal year, which is the end of May 2023. The ASR comes as FedEx said in it’s quarterly filing last month that it did not repurchase any shares during the fiscal first quarter that ended Aug. 31, and had $4.1 billion remaining in the $5 billion stock repurchase program set in December 2021. FedEx shares have tumbled 32.3% over the past three months through Monday, while the Dow Jones Transportation Average has lost 6.2% and the Dow Jones Industrial Average has slipped 5.2%.

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