Cullinan Associates Inc. Buys 14,488 Shares of United Parcel Service, Inc. $UPS

Key Points

• Cullinan Associates Inc. increased its UPS stake by 18.5% in Q1, buying 14,488 additional shares and bringing its total to 92,789 shares worth about $9.13 million.
• Several recent developments were bullish for UPS, including Citigroup raising its price target to $132, Stephens upgrading the stock to strong-buy, and UPS being added to defensive Russell indexes.
• UPS recently beat earnings expectations, posting $1.07 EPS versus the $1.02 estimate, but revenue still declined 1.4% year over year and the company faces some uncertainty around a USPS air cargo contract review.

Cullinan Associates Inc. raised its stake in United Parcel Service, Inc. (NYSE:UPS - Free Report) by 18.5% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 92,789 shares of the transportation company's stock after acquiring an additional 14,488 shares during the period. Cullinan Associates Inc.'s holdings in United Parcel Service were worth $9,129,000 as of its most recent SEC filing.

Several other large investors have also recently modified their holdings of the stock. Potomac Fund Management Inc. ADV raised its holdings in United Parcel Service by 0.8% in the fourth quarter. Potomac Fund Management Inc. ADV now owns 11,324 shares of the transportation company's stock worth $1,123,000 after buying an additional 90 shares during the last quarter. Westbourne Investments Inc. increased its position in shares of United Parcel Service by 1.2% during the fourth quarter. Westbourne Investments Inc. now owns 7,876 shares of the transportation company's stock valued at $781,000 after acquiring an additional 91 shares in the last quarter. Ipsen Advisor Group LLC increased its position in shares of United Parcel Service by 1.7% during the fourth quarter. Ipsen Advisor Group LLC now owns 5,670 shares of the transportation company's stock valued at $562,000 after acquiring an additional 95 shares in the last quarter. Webster Bank N. A. raised its holdings in United Parcel Service by 16.7% in the 4th quarter. Webster Bank N. A. now owns 698 shares of the transportation company's stock worth $69,000 after acquiring an additional 100 shares during the last quarter. Finally, Peoples Financial Services CORP. lifted its position in United Parcel Service by 2.5% in the 4th quarter. Peoples Financial Services CORP. now owns 4,030 shares of the transportation company's stock valued at $400,000 after acquiring an additional 100 shares in the last quarter. Hedge funds and other institutional investors own 60.26% of the company's stock.

United Parcel Service News Roundup

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

• Positive Sentiment: Citigroup raised its price target on UPS to $132 and reiterated a buy rating, while Stephens upgraded the stock to strong-buy, signaling Wall Street sees more upside. Article Title
• Positive Sentiment: UPS was added to the Russell 1000 Value Defensive and Russell 1000 Defensive indexes, which can support demand from index-focused investors and highlight the stock’s defensive appeal. Article Title
• Positive Sentiment: Unusually heavy call option buying suggests traders are positioning for continued gains in UPS shares.
• Positive Sentiment: Several articles pointed to UPS’s strong earnings-beat history and growing investor attention ahead of the next quarterly report, reinforcing expectations for another solid print. Article Title
• Neutral Sentiment: UPS is reshaping its network, likely as part of ongoing operational efficiency efforts, but the article did not indicate an immediate material financial impact. Article Title
• Neutral Sentiment: UPS and FedEx remaining top logistics companies by market cap is a reminder of the company’s scale, but this is more a sector ranking than a stock-moving catalyst. Article Title
• Negative Sentiment: The U.S. Postal Service Inspector General flagged UPS’s air cargo contract with USPS, urging a re-evaluation over volume-guarantee risks and even possible termination if issues are not addressed, which adds uncertainty around parcel volumes and contract revenue. Article Title

United Parcel Service Stock Performance

UPS traded up $1.88 during mid-day trading on Friday, reaching $112.61. 3,408,694 shares of the company traded hands, compared to its average volume of 4,506,363. The company's fifty day moving average price is $105.35 and its 200-day moving average price is $105.59. The stock has a market capitalization of $95.72 billion, a P/E ratio of 18.22, a P/E/G ratio of 1.79 and a beta of 1.05. The company has a quick ratio of 1.21, a current ratio of 1.21 and a debt-to-equity ratio of 1.50. United Parcel Service, Inc. has a 52-week low of $82.00 and a 52-week high of $122.41.

United Parcel Service (NYSE:UPS - Get Free Report) last released its quarterly earnings results on Tuesday, April 28th. The transportation company reported $1.07 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.02 by $0.05. The firm had revenue of $21.20 billion for the quarter, compared to the consensus estimate of $20.99 billion. United Parcel Service had a return on equity of 35.95% and a net margin of 5.94%.The company's revenue for the quarter was down 1.4% on a year-over-year basis. During the same period last year, the business posted $1.49 EPS. On average, sell-side analysts expect that United Parcel Service, Inc. will post 7.11 EPS for the current year.

United Parcel Service Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 4th. Stockholders of record on Monday, May 18th were given a dividend of $1.64 per share. The ex-dividend date of this dividend was Monday, May 18th. This represents a $6.56 annualized dividend and a dividend yield of 5.8%. United Parcel Service's dividend payout ratio is presently 106.15%.

Analyst Upgrades and Downgrades

A number of analysts have commented on the company. Susquehanna lifted their target price on United Parcel Service from $116.00 to $118.00 and gave the stock a "neutral" rating in a report on Wednesday, April 29th. Stephens raised United Parcel Service to a "strong-buy" rating in a report on Wednesday. Weiss Ratings cut United Parcel Service from a "hold (c)" rating to a "sell (d+)" rating in a research report on Friday, May 8th. UBS Group reduced their price objective on United Parcel Service from $125.00 to $123.00 and set a "buy" rating for the company in a report on Wednesday, April 29th. Finally, Citigroup boosted their target price on United Parcel Service from $127.00 to $132.00 and gave the stock a "buy" rating in a research report on Thursday. Two analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, ten have given a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $111.10.

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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