Bank of Nova Scotia Decreases Stake in United Parcel Service, Inc. $UPS

Key Points

• Bank of Nova Scotia reduced its UPS stake by 20% in the first quarter, selling 35,729 shares and leaving it with 143,215 shares valued at about $14.1 million.
• UPS reported better-than-expected quarterly earnings, with EPS of $1.07 versus estimates of $1.02 and revenue of $21.20 billion versus expectations of $20.99 billion, though revenue still fell 1.4% year over year.
• The company recently paid a $1.64 quarterly dividend, equal to a 5.7% yield, while Wall Street’s overall view remains Hold with a consensus target price of $111.50.

Bank of Nova Scotia lowered its holdings in United Parcel Service, Inc. (NYSE:UPS - Free Report) by 20.0% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 143,215 shares of the transportation company's stock after selling 35,729 shares during the period. Bank of Nova Scotia's holdings in United Parcel Service were worth $14,089,000 as of its most recent SEC filing.

A number of other large investors have also modified their holdings of the stock. University of Texas Texas AM Investment Management Co. purchased a new stake in United Parcel Service during the 4th quarter worth $25,000. IFC & Insurance Marketing Inc. acquired a new position in United Parcel Service in the fourth quarter worth about $25,000. Coston McIsaac & Partners increased its holdings in United Parcel Service by 77.8% in the fourth quarter. Coston McIsaac & Partners now owns 272 shares of the transportation company's stock valued at $27,000 after buying an additional 119 shares during the last quarter. Torren Management LLC acquired a new stake in United Parcel Service during the fourth quarter valued at approximately $29,000. Finally, Kemnay Advisory Services Inc. bought a new position in United Parcel Service during the 4th quarter worth approximately $29,000. Institutional investors and hedge funds own 60.26% of the company's stock.

United Parcel Service Trading Up 0.4%

NYSE UPS opened at $114.60 on Friday. The company has a market capitalization of $97.41 billion, a PE ratio of 18.54, a price-to-earnings-growth ratio of 1.83 and a beta of 1.05. The company has a current ratio of 1.21, a quick ratio of 1.21 and a debt-to-equity ratio of 1.50. United Parcel Service, Inc. has a 1-year low of $82.00 and a 1-year high of $122.41. The firm's fifty day simple moving average is $108.28 and its 200-day simple moving average is $106.62.

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

United Parcel Service Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, June 4th. Investors of record on Monday, May 18th were paid a dividend of $1.64 per share. This represents a $6.56 annualized dividend and a yield of 5.7%. The ex-dividend date was Monday, May 18th. United Parcel Service's dividend payout ratio is presently 106.15%.

Wall Street Analyst Weigh In

Several research firms have weighed in on UPS. Citizens Jmp initiated coverage on shares of United Parcel Service in a research note on Wednesday, July 15th. They set a "market perform" rating for the company. Stephens upgraded United Parcel Service to a "strong-buy" rating in a research report on Wednesday, July 8th. Sanford C. Bernstein boosted their price target on shares of United Parcel Service from $130.00 to $133.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 21st. Susquehanna upped their price objective on United Parcel Service from $116.00 to $118.00 and gave the company a "neutral" rating in a report on Wednesday, April 29th. Finally, Evercore decreased their target price on United Parcel Service from $115.00 to $113.00 and set an "in-line" rating on the stock in a report on Wednesday, April 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, twelve have issued a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat, United Parcel Service currently has a consensus rating of "Hold" and a consensus target price of $111.50.

United Parcel Service 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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