Bank of America Has Lowered Expectations for United Parcel Service (NYSE:UPS) Stock Price

Key Points

• Bank of America has reduced its price target for United Parcel Service (UPS) stock from $98.00 to $91.00, while maintaining a "buy" rating. This suggests a potential upside of 6.76% from UPS's last closing price.
• Various analysts have lowered their price targets for UPS, with Barclays setting the lowest at $80.00 and the highest remaining at $120.00 from Stifel Nicolaus, indicating mixed sentiment in the market.
• UPS recently reported a quarterly earnings miss, with earnings per share of $1.55 coming in slightly below analysts' expectations, amid a year-over-year revenue decline of 2.7% to $21.20 billion.

United Parcel Service (NYSE:UPS - Get Free Report) had its price objective dropped by research analysts at Bank of America from $98.00 to $91.00 in a research note issued to investors on Tuesday,Benzinga reports. The brokerage currently has a "buy" rating on the transportation company's stock. Bank of America's price target would indicate a potential upside of 6.76% from the stock's previous close.

Other research analysts also recently issued reports about the stock. Vertical Research reissued a "hold" rating and set a $103.00 price objective on shares of United Parcel Service in a research report on Wednesday, July 30th. Wolfe Research decreased their target price on shares of United Parcel Service from $113.00 to $112.00 and set an "outperform" rating for the company in a report on Tuesday, July 1st. JPMorgan Chase & Co. dropped their price objective on United Parcel Service from $110.00 to $107.00 and set a "neutral" rating on the stock in a research report on Tuesday, July 8th. Barclays dropped their price target on United Parcel Service from $90.00 to $80.00 and set an "underweight" rating on the stock in a research note on Thursday, July 31st. Finally, Stifel Nicolaus dropped their price target on shares of United Parcel Service from $124.00 to $120.00 and set a "buy" rating on the stock in a research note on Wednesday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fourteen have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $112.59.

United Parcel Service Stock Performance

Shares of UPS traded down $2.20 during mid-day trading on Tuesday, hitting $85.24. The stock had a trading volume of 4,933,956 shares, compared to its average volume of 6,474,489. The company has a debt-to-equity ratio of 1.51, a current ratio of 1.32 and a quick ratio of 1.32. The firm has a market cap of $72.25 billion, a P/E ratio of 12.68, a PEG ratio of 1.60 and a beta of 1.08. United Parcel Service has a 52 week low of $84.28 and a 52 week high of $145.01. The business has a fifty day moving average price of $94.42 and a 200-day moving average price of $100.71.

United Parcel Service (NYSE:UPS - Get Free Report) last announced its quarterly earnings data on Tuesday, July 29th. The transportation company reported $1.55 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.56 by ($0.01). United Parcel Service had a net margin of 6.34% and a return on equity of 39.61%. The firm had revenue of $21.20 billion during the quarter, compared to the consensus estimate of $20.90 billion. During the same quarter in the prior year, the firm posted $1.79 earnings per share. The company's revenue was down 2.7% on a year-over-year basis. On average, equities research analysts expect that United Parcel Service will post 7.95 EPS for the current year.

Insider Buying and Selling at United Parcel Service

In other news, CEO Carol B. Tome purchased 11,682 shares of the company's stock in a transaction that occurred on Friday, August 1st. The shares were bought at an average price of $85.67 per share, for a total transaction of $1,000,796.94. Following the completion of the transaction, the chief executive officer owned 24,718 shares in the company, valued at $2,117,591.06. This represents a 89.61% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Christiana Smith Shi purchased 500 shares of United Parcel Service stock in a transaction that occurred on Friday, August 22nd. The shares were bought at an average price of $88.17 per share, with a total value of $44,085.00. Following the transaction, the director owned 500 shares in the company, valued at approximately $44,085. The trade was a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have purchased 17,182 shares of company stock worth $1,477,382 over the last quarter. Insiders own 0.13% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of UPS. Norges Bank acquired a new stake in shares of United Parcel Service in the 2nd quarter worth $851,842,000. Goldman Sachs Group Inc. raised its stake in shares of United Parcel Service by 124.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 9,011,107 shares of the transportation company's stock worth $991,132,000 after buying an additional 4,988,044 shares during the last quarter. Pacer Advisors Inc. grew its position in shares of United Parcel Service by 1,056.6% in the first quarter. Pacer Advisors Inc. now owns 4,336,175 shares of the transportation company's stock valued at $476,936,000 after purchasing an additional 3,961,255 shares during the last quarter. Laurel Wealth Advisors LLC increased its position in United Parcel Service by 11,517.3% during the second quarter. Laurel Wealth Advisors LLC now owns 2,503,413 shares of the transportation company's stock worth $252,695,000 after buying an additional 2,481,864 shares in the last quarter. Finally, Nuveen LLC acquired a new position in United Parcel Service in the 1st quarter valued at about $201,358,000. 60.26% of the stock is owned by hedge funds and other institutional investors.

About United Parcel Service

United Parcel Service, Inc, a package delivery company, provides transportation and delivery, distribution, contract logistics, ocean freight, airfreight, customs brokerage, and insurance services. It operates through two segments, U.S. Domestic Package and International Package. The U.S. Domestic Package segment offers time-definite delivery of express letters, documents, small packages, and palletized freight through air and ground services in the United States.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.