FedEx Spins Off Freight Division; Which Stock to Own?
In June, FedEx (FDX) spun off an 80.1% stake in its less-than-truckload freight segment into a new publicly traded company, FedEx Freight (FDXF). The spinoff marks part of FedEx's broader strategy to focus on its core parcel delivery business by divesting non-core assets like the recently sold FedEx Supply Chain subsidiary. Since the split, both stocks have performed differently. While FDX has remained relatively stable in a narrow trading range during summer months, FDXF initially saw gains but later lost ground and more. Investors received one share of FDXF for every two shares of FDX at the time of the spinoff. The question now is whether to hold both stocks or sell one. FedEx plans to eventually divest its remaining 19.9% stake in FedEx Freight, potentially through debt exchanges or by distributing them directly to shareholders.
Tickers: $FDX
Topics: divestitures FedEx stock performance