Flax Pond Capital LLC Purchases Shares of 34,531 United Parcel Service, Inc. $UPS

Key Points

• Flax Pond Capital LLC initiated a new position in United Parcel Service, buying 34,531 shares valued at about $3.4 million in the fourth quarter. UPS now represents roughly 2.5% of the fund’s holdings.
• UPS reported better-than-expected quarterly results, with EPS of $1.07 versus the $1.02 consensus and revenue of $21.20 billion, though sales still fell 1.4% year over year. Analysts now expect the company to earn 7.1 EPS for the full year.
• The company continues to pay a sizable dividend, recently distributing $1.64 per share, equal to an annualized yield of about 6.2%. However, the payout ratio is elevated at 106.15%, and analysts currently rate the stock a Hold with a consensus target of $111.50.

Flax Pond Capital LLC purchased a new position in shares of United Parcel Service, Inc. (NYSE:UPS - Free Report) during the 4th quarter, according to its most recent Form 13F filing with the SEC. The fund purchased 34,531 shares of the transportation company's stock, valued at approximately $3,425,000. United Parcel Service makes up about 2.5% of Flax Pond Capital LLC's holdings, making the stock its 18th biggest position.

A number of other large investors also recently modified their holdings of the business. Auto Owners Insurance Co grew its stake in shares of United Parcel Service by 9,819.0% in the fourth quarter. Auto Owners Insurance Co now owns 1,220,037 shares of the transportation company's stock valued at $122,004,000 after buying an additional 1,207,737 shares in the last quarter. Union Savings Bank bought a new position in shares of United Parcel Service in the 4th quarter valued at about $130,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in shares of United Parcel Service during the 4th quarter worth about $772,000. Bayban bought a new stake in shares of United Parcel Service in the 4th quarter valued at about $57,000. Finally, Pure Financial Advisors LLC raised its holdings in shares of United Parcel Service by 3.7% in the 4th quarter. Pure Financial Advisors LLC now owns 19,626 shares of the transportation company's stock valued at $1,947,000 after purchasing an additional 696 shares during the period. 60.26% of the stock is currently owned by institutional investors and hedge funds.

United Parcel Service Price Performance

United Parcel Service stock opened at $105.29 on Friday. United Parcel Service, Inc. has a 12 month low of $82.00 and a 12 month high of $122.41. The stock's 50 day moving average is $104.09 and its 200-day moving average is $104.47. 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 capitalization of $89.50 billion, a price-to-earnings ratio of 17.04, a PEG ratio of 1.67 and a beta of 1.05.

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 for the quarter, topping the consensus estimate of $1.02 by $0.05. The business had revenue of $21.20 billion during 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%.The firm's revenue for the quarter was down 1.4% compared to the same quarter last year. During the same period last year, the firm posted $1.49 EPS. Equities research analysts expect that United Parcel Service, Inc. will post 7.1 EPS for the current year.

United Parcel Service Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 4th. Shareholders of record on Monday, May 18th were given a dividend of $1.64 per share. The ex-dividend date was Monday, May 18th. This represents a $6.56 annualized dividend and a yield of 6.2%. United Parcel Service's dividend payout ratio (DPR) is presently 106.15%.

Analysts Set New Price Targets

UPS has been the topic of a number of recent analyst reports. Weiss Ratings downgraded United Parcel Service from a "hold (c)" rating to a "sell (d+)" rating in a research report on Friday, May 8th. Citigroup lifted their target price on United Parcel Service from $118.00 to $127.00 and gave the stock a "buy" rating in a research note on Wednesday, April 29th. UBS Group decreased their target price on United Parcel Service from $125.00 to $123.00 and set a "buy" rating on the stock in a report on Wednesday, April 29th. Susquehanna increased their price target on United Parcel Service from $116.00 to $118.00 and gave the company a "neutral" rating in a research note on Wednesday, April 29th. Finally, Evercore cut their price target on United Parcel Service from $115.00 to $113.00 and set an "in-line" rating for the company in a report on Wednesday, April 22nd. One investment 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. Based on data from MarketBeat.com, 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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