Goldman Sachs Group Inc. Acquires 4,988,044 Shares of United Parcel Service, Inc. (NYSE:UPS)

Key Points

• Goldman Sachs increased its stake in United Parcel Service by 124.0%, owning approximately 9 million shares valued at around $991 million as of the latest SEC filing.
• In addition to Goldman Sachs, other hedge funds also increased their positions in UPS, contributing to institutional investors owning 60.26% of the company's stock.
• United Parcel Service reported earnings of $1.55 per share for the last quarter, missing estimates, while its quarterly revenue was up to $21.20 billion, exceeding expectations.

Goldman Sachs Group Inc. grew its position in shares of United Parcel Service, Inc. (NYSE:UPS - Free Report) by 124.0% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 9,011,107 shares of the transportation company's stock after buying an additional 4,988,044 shares during the quarter. Goldman Sachs Group Inc. owned 1.05% of United Parcel Service worth $991,132,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds have also recently modified their holdings of UPS. Pinney & Scofield Inc. bought a new stake in United Parcel Service during the fourth quarter valued at approximately $27,000. Fourth Dimension Wealth LLC bought a new stake in shares of United Parcel Service during the 4th quarter valued at $28,000. Graybill Wealth Management LTD. purchased a new stake in shares of United Parcel Service in the 1st quarter worth $26,000. Marshall & Sterling Wealth Advisors Inc. bought a new position in United Parcel Service in the 4th quarter worth $31,000. Finally, Citizens National Bank Trust Department lifted its position in United Parcel Service by 525.0% during the first quarter. Citizens National Bank Trust Department now owns 250 shares of the transportation company's stock valued at $27,000 after purchasing an additional 210 shares in the last quarter. 60.26% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research analysts have recently commented on UPS shares. TD Cowen decreased their price objective on United Parcel Service from $117.00 to $107.00 in a research note on Wednesday, April 30th. Wall Street Zen cut shares of United Parcel Service from a "buy" rating to a "hold" rating in a research note on Wednesday, May 7th. BNP Paribas raised shares of United Parcel Service to a "hold" rating in a report on Thursday, July 3rd. Stifel Canada reduced their price objective on shares of United Parcel Service from $145.00 to $124.00 in a research note on Wednesday, April 30th. Finally, HSBC cut shares of United Parcel Service from a "buy" rating to a "hold" rating and lowered their target price for the company from $140.00 to $105.00 in a research note on Thursday, May 1st. Two investment analysts have rated the stock with a sell rating, seventeen have issued a hold rating, eleven have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, United Parcel Service has an average rating of "Hold" and a consensus price target of $112.81.

Insiders Place Their Bets

In other news, Director William R. Johnson bought 5,000 shares of United Parcel Service stock in a transaction dated Thursday, July 31st. The shares were acquired at an average price of $86.50 per share, with a total value of $432,500.00. Following the completion of the purchase, the director owned 10,160 shares in the company, valued at $878,840. The trade was a 96.90% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, 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 cost of $85.67 per share, with a total value of $1,000,796.94. Following the completion of the purchase, the chief executive officer owned 24,718 shares in the company, valued at $2,117,591.06. This trade represents a 89.61% increase in their position. The disclosure for this purchase can be found here. Insiders own 0.13% of the company's stock.

United Parcel Service Trading Down 0.6%

UPS traded down $0.51 on Wednesday, hitting $86.27. The company had a trading volume of 6,325,788 shares, compared to its average volume of 7,847,141. The business's fifty day simple moving average is $98.89 and its 200 day simple moving average is $105.38. 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, Inc. has a 12-month low of $84.28 and a 12-month high of $145.01. The company has a market cap of $73.06 billion, a PE ratio of 12.84, a PEG ratio of 1.58 and a beta of 1.12.

United Parcel Service (NYSE:UPS - Get Free Report) last posted its quarterly earnings data on Tuesday, July 29th. The transportation company reported $1.55 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.56 by ($0.01). The company had revenue of $21.20 billion during the quarter, compared to the consensus estimate of $20.90 billion. United Parcel Service had a net margin of 6.34% and a return on equity of 39.61%. United Parcel Service's revenue for the quarter was down 2.7% on a year-over-year basis. During the same period in the previous year, the business earned $1.79 earnings per share. Equities research analysts expect that United Parcel Service, Inc. will post 7.95 EPS for the current year.

United Parcel Service Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 5th. Shareholders of record on Monday, May 19th were given a dividend of $1.64 per share. The ex-dividend date was Monday, May 19th. This represents a $6.56 dividend on an annualized basis and a yield of 7.6%. United Parcel Service's payout ratio is 97.62%.

About United Parcel Service

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.