Bank of America Issues Pessimistic Forecast for United Parcel Service (NYSE:UPS) Stock Price

Key Points

• Bank of America has lowered its price target for United Parcel Service (UPS) from $83.00 to $81.00, maintaining an "underperform" rating, indicating a potential downside of 3.16% from its current price.
• UPS's recent earnings report showed a earnings per share of $1.55, missing analysts' expectations, with a revenue of $21.20 billion, down 2.7% compared to the same quarter the previous year.
• Insider activity includes CEO Carol B. Tome purchasing 11,682 shares, marking a significant increase in her ownership, while several institutional investors have also raised their stakes in the company recently.

United Parcel Service (NYSE:UPS - Get Free Report) had its target price dropped by stock analysts at Bank of America from $83.00 to $81.00 in a report issued on Friday,Benzinga reports. The brokerage currently has an "underperform" rating on the transportation company's stock. Bank of America's price objective would indicate a potential downside of 3.16% from the stock's current price.

Several other research firms also recently commented on UPS. Evercore ISI decreased their price objective on United Parcel Service from $103.00 to $97.00 and set an "in-line" rating for the company in a report on Wednesday, July 30th. Wolfe Research dropped their price target on United Parcel Service from $113.00 to $112.00 and set an "outperform" rating on the stock in a research report on Tuesday, July 1st. Susquehanna dropped their price target on United Parcel Service from $110.00 to $100.00 and set a "neutral" rating on the stock in a research report on Wednesday, July 30th. Galvan Research dropped their price target on United Parcel Service from $126.00 to $124.00 and set a "buy" rating on the stock in a research report on Monday, June 30th. Finally, Wells Fargo & Company dropped their price target on United Parcel Service from $98.00 to $91.00 and set an "equal weight" rating on the stock in a research report on Wednesday, July 30th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, fifteen have issued a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat.com, United Parcel Service currently has an average rating of "Hold" and a consensus price target of $111.38.

United Parcel Service Trading Up 1.3%

Shares of United Parcel Service stock traded up $1.06 during midday trading on Friday, reaching $83.64. The company had a trading volume of 4,246,864 shares, compared to its average volume of 6,711,260. The stock has a fifty day moving average price of $88.21 and a 200 day moving average price of $96.80. 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 $70.89 billion, a PE ratio of 12.45, a P/E/G ratio of 1.55 and a beta of 1.08. United Parcel Service has a fifty-two week low of $82.00 and a fifty-two week high of $145.01.

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

Insider Activity at United Parcel Service

In other United Parcel Service news, CEO Carol B. Tome purchased 11,682 shares of the firm's stock in a transaction that occurred on Friday, August 1st. The stock was purchased at an average cost of $85.67 per share, with a total value of $1,000,796.94. Following the purchase, the chief executive officer owned 24,718 shares of the company's stock, valued at approximately $2,117,591.06. The trade was a 89.61% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Christiana Smith Shi purchased 500 shares of the firm's stock in a transaction that occurred on Friday, August 22nd. The shares were acquired at an average cost of $88.17 per share, with a total value of $44,085.00. Following the completion of the purchase, the director directly owned 500 shares in the company, valued at $44,085. The trade was a ∞ increase in their position. The disclosure for this purchase can be found here. Over the last three months, insiders bought 17,182 shares of company stock valued at $1,477,382. Insiders own 0.13% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of UPS. Evelyn Partners Investment Management Europe Ltd increased its holdings in United Parcel Service by 110.1% during the 2nd quarter. Evelyn Partners Investment Management Europe Ltd now owns 250 shares of the transportation company's stock worth $25,000 after purchasing an additional 131 shares during the period. Graybill Wealth Management LTD. purchased a new position in United Parcel Service during the 1st quarter worth $26,000. Mid American Wealth Advisory Group Inc. purchased a new position in United Parcel Service during the 2nd quarter worth $26,000. Citizens National Bank Trust Department increased its holdings in shares of United Parcel Service by 525.0% in the 1st quarter. Citizens National Bank Trust Department now owns 250 shares of the transportation company's stock valued at $27,000 after acquiring an additional 210 shares during the period. Finally, Hemington Wealth Management increased its holdings in shares of United Parcel Service by 68.9% in the 1st quarter. Hemington Wealth Management now owns 282 shares of the transportation company's stock valued at $31,000 after acquiring an additional 115 shares during the period. 60.26% of the stock is currently owned by hedge funds and other institutional investors.

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.

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