FedEx Corporation (NYSE :), a trusted delivery company, has announced a $5B share repurchase program. It includes a $1.50B accelerated purchase program. But, with shipping costs rising, is FDX able to provide strong shareholder returns? Find out more. FedEx Corporation (FDX), based in Memphis, Tenn. is the 2nd-largest U.S. delivery service company in terms of revenues. It ranks #45 in the Fortune 500. The company today announced plans to purchase $1.50 Billion worth shares. Goldman Sachs Group Inc. (NYSE) was purchased as part of an expedited share repurchase arrangement. Initially, FDX will buy 4.80million shares from GS at the current market price. It is expected that the remaining shares will be purchased at a reduced price.

The accelerated share repurchase program is part of the company’s plans to buy back $5 billion worth of shares, which it announced on December 16. These shares are in addition to the 2.30 million shares that were available under the 2016 share purchase agreement. As of December 16, 20,21, FDX had repurchased shares worth approximately $750 millions. Share repurchase agreements are expected to increase ROE and EPS among existing shareholders.

Shares of FDX have gained 1.2% in price over the past month and 1.6% over the past five days, outperforming the benchmark S&P 500 index, which retreated over this period.

Continue reading on StockNews