Bank of America Cuts United Parcel Service (NYSE:UPS) Price Target to $91.00

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 - Free Report) had its price target decreased by Bank of America from $98.00 to $91.00 in a report released on Tuesday morning,Benzinga reports. Bank of America currently has a buy rating on the transportation company's stock.

A number of other equities research analysts have also issued reports on UPS. Citigroup lowered their target price on United Parcel Service from $127.00 to $114.00 and set a "buy" rating for the company in a research note on Thursday, July 31st. Galvan Research lowered their price objective on United Parcel Service from $126.00 to $124.00 and set a "buy" rating for the company in a research note on Monday, June 30th. Wolfe Research lowered their price objective on United Parcel Service from $113.00 to $112.00 and set an "outperform" rating for the company in a research note on Tuesday, July 1st. Wells Fargo & Company lowered their price objective on United Parcel Service from $98.00 to $91.00 and set an "equal weight" rating for the company in a research note on Wednesday, July 30th. Finally, Susquehanna lowered their price objective on United Parcel Service from $110.00 to $100.00 and set a "neutral" rating for the company in a research note on Wednesday, July 30th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fourteen have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $112.59.

United Parcel Service Trading Up 0.6%

Shares of United Parcel Service stock traded up $0.48 during trading hours on Tuesday, reaching $84.96. The stock had a trading volume of 8,580,388 shares, compared to its average volume of 7,905,999. The firm has a 50 day simple moving average of $93.18 and a two-hundred day simple moving average of $100.07. The firm has a market capitalization of $72.01 billion, a price-to-earnings ratio of 12.64, a P/E/G ratio of 1.55 and a beta of 1.08. The company has a current ratio of 1.32, a quick ratio of 1.32 and a debt-to-equity ratio of 1.51. United Parcel Service has a 1 year low of $83.67 and a 1 year high of $145.01.

United Parcel Service (NYSE:UPS - Get Free Report) last posted its earnings results 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 company had revenue of $21.20 billion during the quarter, compared to analyst estimates of $20.90 billion. During the same quarter last year, the business posted $1.79 EPS. United Parcel Service's quarterly revenue was down 2.7% compared to the same quarter last year. As a group, equities research analysts anticipate that United Parcel Service will post 7.95 earnings per share for the current year.

United Parcel Service Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 4th. Stockholders of record on Monday, August 18th were paid a $1.64 dividend. This represents a $6.56 dividend on an annualized basis and a dividend yield of 7.7%. The ex-dividend date of this dividend was Monday, August 18th. United Parcel Service's payout ratio is currently 97.62%.

Insider Transactions at United Parcel Service

In related news, CEO Carol B. Tome bought 11,682 shares of the business's stock in a transaction dated Friday, August 1st. The shares were bought at an average cost of $85.67 per share, with a total value of $1,000,796.94. Following the completion of the transaction, the chief executive officer directly owned 24,718 shares of the company's stock, valued at approximately $2,117,591.06. This trade represents a 89.61% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Director William R. Johnson bought 5,000 shares of the business's stock in a transaction dated Thursday, July 31st. The shares were bought at an average cost of $86.50 per share, for a total transaction of $432,500.00. Following the completion of the transaction, the director directly owned 10,160 shares of the company's stock, valued at $878,840. This trade represents a 96.90% 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 valued at $1,477,382 over the last three months. Company insiders own 0.13% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of UPS. Evelyn Partners Investment Management Europe Ltd grew its holdings in shares of United Parcel Service by 110.1% during the second quarter. Evelyn Partners Investment Management Europe Ltd now owns 250 shares of the transportation company's stock valued at $25,000 after buying an additional 131 shares in the last quarter. Graybill Wealth Management LTD. purchased a new position in shares of United Parcel Service during the first quarter valued at $26,000. Mid American Wealth Advisory Group Inc. purchased a new position in shares of United Parcel Service during the second quarter valued at $26,000. Pinney & Scofield Inc. purchased a new position in shares of United Parcel Service during the fourth quarter valued at $27,000. Finally, Citizens National Bank Trust Department grew its holdings in shares of United Parcel Service by 525.0% during the first quarter. Citizens National Bank Trust Department now owns 250 shares of the transportation company's stock valued at $27,000 after buying an additional 210 shares in the last quarter. Hedge funds and other institutional investors own 60.26% of the company's stock.

United Parcel Service Company Profile

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.