The newly spun off freight business of FedEx (FDX) begins trading today (June 1).
The logistics and delivery giant said that FedEx Freight has successfully completed its spinoff and will begin trading on the New York Stock Exchange under the ticker symbol “FDXF.”
Shares of FedEx Freight were up 2.2% in premarket trading on the morning of June 1, suggesting a strong debut for the new stock.
FedEx Freight is the largest provider of less-than-truckload (LTL) services in the U.S. That service is for small freight loads that are typically shipped over short distances.
The company comes to market with freight rates in the U.S. poised to rebound after a four-year slump coming out of the Covid-19 pandemic.
FedEx Freight competes against other trucking and logistics firms such as Old Dominion Freight Line (ODFL).
FedEx Freight has said that it expects revenue growth of 4% to 6% this year. The company also forecasts profit growth of 10% to 12%.
The freight business was a relatively small part of FedEx’s overall operations and the spin-off comes as the company looks to boost its financial results and share price.
FDX stock has risen 36% over the past five years to trade at $411.75 U.S. per share.
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