Arax Advisory Partners Sells 56,797 Shares of United Parcel Service, Inc. $UPS

Key Points

• Arax Advisory Partners cut its UPS position by 59.7% in the fourth quarter, selling 56,797 shares and ending with 38,273 shares valued at about $3.8 million.
• UPS reported better-than-expected quarterly earnings, posting $1.07 EPS versus the $1.02 consensus and revenue of $21.2 billion, though revenue was still down 1.4% year over year.
• The company recently paid a $1.64 quarterly dividend, implying an annualized yield of about 6.1%, while analysts currently hold a mixed view with a consensus rating of Hold and a target price of $111.50.

Arax Advisory Partners lessened its holdings in United Parcel Service, Inc. (NYSE:UPS - Free Report) by 59.7% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 38,273 shares of the transportation company's stock after selling 56,797 shares during the quarter. Arax Advisory Partners' holdings in United Parcel Service were worth $3,796,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in the company. Brighton Jones LLC raised its holdings in United Parcel Service by 63.8% during the 4th quarter. Brighton Jones LLC now owns 12,126 shares of the transportation company's stock worth $1,529,000 after purchasing an additional 4,723 shares during the last quarter. Sivia Capital Partners LLC bought a new position in United Parcel Service during the 2nd quarter worth approximately $277,000. SVB Wealth LLC acquired a new stake in shares of United Parcel Service during the 2nd quarter worth approximately $848,000. Treasurer of the State of North Carolina grew its position in shares of United Parcel Service by 2.7% during the 2nd quarter. Treasurer of the State of North Carolina now owns 342,866 shares of the transportation company's stock worth $34,609,000 after buying an additional 9,124 shares during the period. Finally, Ieq Capital LLC grew its position in shares of United Parcel Service by 154.5% during the 2nd quarter. Ieq Capital LLC now owns 104,819 shares of the transportation company's stock worth $10,580,000 after buying an additional 63,629 shares during the period. Institutional investors and hedge funds own 60.26% of the company's stock.

United Parcel Service Stock Performance

NYSE UPS opened at $107.96 on Monday. The company has a fifty day simple moving average of $103.23 and a 200 day simple moving average of $104.13. United Parcel Service, Inc. has a 12-month low of $82.00 and a 12-month high of $122.41. The company has a current ratio of 1.21, a quick ratio of 1.21 and a debt-to-equity ratio of 1.50. The company has a market cap of $91.76 billion, a P/E ratio of 17.47, a PEG ratio of 1.72 and a beta of 1.05.

United Parcel Service (NYSE:UPS - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The transportation company reported $1.07 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.02 by $0.05. United Parcel Service had a net margin of 5.94% and a return on equity of 35.95%. The business had revenue of $21.20 billion during the quarter, compared to the consensus estimate of $20.99 billion. During the same quarter last year, the firm posted $1.49 EPS. United Parcel Service's revenue was down 1.4% compared to the same quarter last year. Sell-side analysts predict that United Parcel Service, Inc. will post 7.1 earnings per share for the current fiscal year.

United Parcel Service Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 4th. Investors of record on Monday, May 18th were given a $1.64 dividend. The ex-dividend date of this dividend was Monday, May 18th. This represents a $6.56 annualized dividend and a yield of 6.1%. United Parcel Service's dividend payout ratio (DPR) is presently 106.15%.

Wall Street Analyst Weigh In

Several brokerages have recently commented on UPS. Weiss Ratings downgraded shares of United Parcel Service from a "hold (c)" rating to a "sell (d+)" rating in a research report on Friday, May 8th. Evercore reduced their price objective on shares of United Parcel Service from $115.00 to $113.00 and set an "in-line" rating for the company in a research report on Wednesday, April 22nd. Susquehanna raised their price objective on shares of United Parcel Service from $116.00 to $118.00 and gave the stock a "neutral" rating in a research report on Wednesday, April 29th. Citigroup raised their price objective on shares of United Parcel Service from $118.00 to $127.00 and gave the stock a "buy" rating in a research report on Wednesday, April 29th. Finally, UBS Group reduced their price objective on shares of United Parcel Service from $125.00 to $123.00 and set a "buy" rating for the company in a research report on Wednesday, April 29th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, eleven have issued a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $111.50.

Trending Headlines about United Parcel Service

Here are the key news stories impacting United Parcel Service this week:

• Positive Sentiment: UPS shares have been boosted by a broader bullish take on the stock after the Fed’s rate-cut pivot, with some investors viewing UPS as an attractive cyclical income play with a high dividend yield. A Dramatic Fed Pivot Just Unlocked a New Era of Growth for UPS
• Positive Sentiment: UPS-owned Roadie announced a same-day delivery partnership with Omaha Steaks ahead of Father’s Day, highlighting growth in its last-mile and same-day delivery services. From Cart to Cookout: Omaha Steaks and Roadie Power Same-Day Delivery for Father’s Day
• Neutral Sentiment: UPS was also the subject of valuation and stock-performance commentary, with some analysts questioning whether the recent pullback created a better long-term entry point rather than pointing to a new fundamental problem. Is It Time To Reconsider UPS NYSE: UPS After Recent Share Price Weakness?
• Neutral Sentiment: UPS met its deadline for retrofitting delivery vans with air conditioning, easing one labor-related pressure point after Teamsters scrutiny, though the issue also underscores ongoing union oversight. UPS meets deadline for retrofitting delivery vans with air conditioning
• Negative Sentiment: Separate UK news about a parcel delivery firm “evaluating options” for a depot closure and 3,000 jobs at risk adds to concerns about softness or restructuring pressures in the parcel-delivery industry, which could weigh on sentiment toward UPS. Massive parcel delivery firm could shut UK depot as it ‘evaluates options’ – with 3,000 jobs at risk
• Negative Sentiment: Some market commentary still frames UPS as a large-cap stock with limited growth runway, and recent coverage has also highlighted weakness in the shares over the past week. 3 Large-Cap Stocks That Concern Us

United Parcel Service Company Profile

United Parcel Service NYSE: UPS is a global package delivery and supply chain management company that provides a broad range of transportation, logistics and e-commerce services. Its core business centers on small-package delivery and last-mile distribution for business and individual customers, supported by a network of ground transportation, air cargo operations (UPS Airlines) and sorting facilities. In addition to parcel delivery, UPS offers freight transportation, contract logistics, warehousing, customs brokerage and reverse-logistics solutions designed to support domestic and international commerce.

The company traces its roots to 1907 when it began as a small messenger service in the United States and later evolved into the United Parcel Service.

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