Ferguson Wellman Capital Management Inc. Makes New Investment in United Parcel Service, Inc. $UPS

Key Points

• Ferguson Wellman Capital Management opened a new position in United Parcel Service, buying 102,112 shares worth about $10.0 million in the first quarter.
• UPS shares rose 1.7% to $112.61, and the stock remains near its 50-day and 200-day moving averages while trading below its 52-week high of $122.41.
• UPS recently beat earnings expectations with $1.07 EPS on revenue of $21.2 billion, and it continues to offer a 5.8% dividend yield, though analysts remain mixed overall with an average rating of Hold.

Ferguson Wellman Capital Management Inc. acquired a new stake in United Parcel Service, Inc. (NYSE:UPS - Free Report) in the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 102,112 shares of the transportation company's stock, valued at approximately $10,046,000.

A number of other hedge funds also recently made changes to their positions in UPS. Vanguard Group Inc. raised its position in United Parcel Service by 1.8% in the fourth quarter. Vanguard Group Inc. now owns 68,496,420 shares of the transportation company's stock worth $6,794,160,000 after acquiring an additional 1,218,432 shares during the period. State Street Corp raised its stake in United Parcel Service by 3.3% in the fourth quarter. State Street Corp now owns 32,092,627 shares of the transportation company's stock valued at $3,183,268,000 after purchasing an additional 1,029,377 shares in the last quarter. Charles Schwab Investment Management Inc. grew its stake in United Parcel Service by 3.3% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 27,142,759 shares of the transportation company's stock worth $2,692,290,000 after buying an additional 856,125 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of United Parcel Service by 1.4% in the 4th quarter. Geode Capital Management LLC now owns 17,154,091 shares of the transportation company's stock worth $1,703,291,000 after buying an additional 240,253 shares during the last quarter. Finally, Victory Capital Management Inc. raised its position in shares of United Parcel Service by 72.9% during the 4th quarter. Victory Capital Management Inc. now owns 13,818,314 shares of the transportation company's stock valued at $1,370,639,000 after buying an additional 5,826,824 shares in the last quarter. 60.26% of the stock is currently owned by institutional investors.

United Parcel Service Trading Up 1.7%

United Parcel Service stock traded up $1.88 during trading hours on Friday, reaching $112.61. The stock had a trading volume of 3,408,694 shares, compared to its average volume of 4,506,363. The company has a fifty day simple moving average of $105.35 and a 200-day simple moving average of $105.59. United Parcel Service, Inc. has a 52 week low of $82.00 and a 52 week high of $122.41. The stock has a market cap of $95.72 billion, a PE ratio of 18.22, a PEG ratio of 1.79 and a beta of 1.05. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.21 and a quick ratio of 1.21.

United Parcel Service (NYSE:UPS - Get Free Report) last posted its earnings results on Tuesday, April 28th. The transportation company reported $1.07 earnings per share (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 analysts' expectations of $20.99 billion. United Parcel Service had a return on equity of 35.95% and a net margin of 5.94%.United Parcel Service's quarterly revenue was down 1.4% on a year-over-year basis. During the same period last year, the firm earned $1.49 earnings per share. Analysts forecast that United Parcel Service, Inc. will post 7.11 EPS for the current fiscal year.

United Parcel Service Announces Dividend

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

Key Headlines Impacting United Parcel Service

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

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on UPS shares. Weiss Ratings cut United Parcel Service from a "hold (c)" rating to a "sell (d+)" rating in a research note on Friday, May 8th. Evercore decreased their price target on shares of United Parcel Service from $115.00 to $113.00 and set an "in-line" rating on the stock in a research note on Wednesday, April 22nd. UBS Group decreased their target price on shares of United Parcel Service from $125.00 to $123.00 and set a "buy" rating on the stock in a research report on Wednesday, April 29th. Susquehanna boosted their price target on shares of United Parcel Service from $116.00 to $118.00 and gave the stock a "neutral" rating in a research note on Wednesday, April 29th. Finally, Stephens raised United Parcel Service to a "strong-buy" rating in a research note on Wednesday. Two equities research 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 given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $111.10.

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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