Charles Schwab Investment Management Inc. Boosts Position in United Parcel Service, Inc. (NYSE:UPS)

Key Points

• Charles Schwab Investment Management Inc. increased its stake in United Parcel Service (UPS) by 7.7% in Q1, owning over 25 million shares worth approximately $2.75 billion.
• CEO Carol B. Tome and director William R. Johnson both made significant stock purchases, increasing their holdings by nearly 90% and 97% respectively.
• United Parcel Service's quarterly dividend of $1.64 per share represents an annualized yield of 7.6%, with a high dividend payout ratio of 97.62%.

Charles Schwab Investment Management Inc. raised its position in shares of United Parcel Service, Inc. (NYSE:UPS - Free Report) by 7.7% during the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 25,045,472 shares of the transportation company's stock after acquiring an additional 1,780,807 shares during the period. Charles Schwab Investment Management Inc. owned approximately 2.93% of United Parcel Service worth $2,754,751,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also bought and sold shares of UPS. Graybill Wealth Management LTD. bought a new position in shares of United Parcel Service in the first quarter worth about $26,000. Pinney & Scofield Inc. bought a new position in shares of United Parcel Service in the fourth quarter worth about $27,000. Citizens National Bank Trust Department grew its holdings in shares of United Parcel Service by 525.0% in the first quarter. Citizens National Bank Trust Department now owns 250 shares of the transportation company's stock worth $27,000 after purchasing an additional 210 shares during the last quarter. Fourth Dimension Wealth LLC bought a new position in shares of United Parcel Service in the fourth quarter worth about $28,000. Finally, Marshall & Sterling Wealth Advisors Inc. bought a new position in shares of United Parcel Service in the fourth quarter worth about $31,000. Institutional investors own 60.26% of the company's stock.

Insiders Place Their Bets

In related 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 purchased at an average price 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 $2,117,591.06. The trade was 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 through this hyperlink. Also, Director William R. Johnson bought 5,000 shares of the stock in a transaction on Thursday, July 31st. The shares were acquired at an average cost of $86.50 per share, for a total transaction of $432,500.00. Following the purchase, the director owned 10,160 shares in the company, valued at $878,840. The trade was a 96.90% increase in their ownership of the stock. The disclosure for this purchase can be found here. 0.13% of the stock is currently owned by company insiders.

United Parcel Service Stock Performance

Shares of NYSE UPS traded up $0.16 during midday trading on Friday, reaching $86.65. 6,275,090 shares of the stock were exchanged, compared to its average volume of 8,095,052. The firm has a 50-day simple moving average of $98.23 and a two-hundred day simple moving average of $104.63. United Parcel Service, Inc. has a twelve month low of $84.28 and a twelve month high of $145.01. The firm has a market cap of $73.38 billion, a price-to-earnings ratio of 12.89, a PEG ratio of 1.57 and a beta of 1.12. The company has a quick ratio of 1.09, a current ratio of 1.32 and a debt-to-equity ratio of 1.51.

United Parcel Service (NYSE:UPS - Get Free Report) last released its quarterly 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 period in the prior year, the business posted $1.79 EPS. United Parcel Service's revenue was down 2.7% compared to the same quarter last year. As a group, analysts anticipate that United Parcel Service, Inc. will post 7.95 EPS for the current fiscal year.

United Parcel Service Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 4th. Investors of record on Monday, August 18th will be paid a $1.64 dividend. The ex-dividend date of this dividend is Monday, August 18th. This represents a $6.56 dividend on an annualized basis and a yield of 7.6%. United Parcel Service's dividend payout ratio (DPR) is currently 97.62%.

Wall Street Analyst Weigh In

UPS has been the topic of a number of research analyst reports. Hsbc Global Res cut shares of United Parcel Service from a "strong-buy" rating to a "hold" rating in a report on Thursday, May 1st. Morgan Stanley lowered their price objective on shares of United Parcel Service from $80.00 to $75.00 and set an "underweight" rating for the company in a research note on Wednesday, July 30th. TD Cowen lowered their price objective on shares of United Parcel Service from $117.00 to $107.00 in a research note on Wednesday, April 30th. Truist Financial lowered their price objective on shares of United Parcel Service from $130.00 to $120.00 and set a "buy" rating for the company in a research note on Wednesday, July 30th. Finally, BMO Capital Markets lowered their price objective on shares of United Parcel Service from $130.00 to $125.00 and set an "outperform" rating for the company in a research note on Wednesday, April 30th. Two analysts have rated the stock with a sell rating, seventeen have given a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $112.81.

United Parcel Service 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.