Healthcare of Ontario Pension Plan Trust Fund Trims Stock Position in United Parcel Service, Inc. $UPS

Key Points

• Healthcare of Ontario Pension Plan Trust Fund reduced its UPS stake by 55.6% in the fourth quarter, selling 633,924 shares and leaving it with 507,213 shares valued at about $50.3 million.
• UPS reported quarterly earnings of $1.07 per share, topping estimates, and revenue of $21.20 billion, though revenue still declined 1.4% from a year earlier. Analysts expect the company to earn about $7.10 per share for the full fiscal year.
• UPS recently paid a $1.64 quarterly dividend, equal to a 6.1% yield, but its payout ratio is high at 106.15%. Analyst sentiment remains mixed, with a consensus rating of Hold and an average price target of $111.50.

Healthcare of Ontario Pension Plan Trust Fund cut its stake in shares of United Parcel Service, Inc. (NYSE:UPS - Free Report) by 55.6% during the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 507,213 shares of the transportation company's stock after selling 633,924 shares during the quarter. Healthcare of Ontario Pension Plan Trust Fund owned approximately 0.06% of United Parcel Service worth $50,310,000 at the end of the most recent reporting period.

Other institutional investors have also modified their holdings of the company. Icon Wealth Advisors LLC boosted its stake in shares of United Parcel Service by 22.1% during the fourth quarter. Icon Wealth Advisors LLC now owns 10,062 shares of the transportation company's stock valued at $998,000 after purchasing an additional 1,821 shares in the last quarter. Clear Street Group Inc. bought a new position in shares of United Parcel Service during the fourth quarter valued at approximately $592,000. Destination Wealth Management boosted its stake in shares of United Parcel Service by 286.7% during the fourth quarter. Destination Wealth Management now owns 27,547 shares of the transportation company's stock valued at $2,732,000 after purchasing an additional 20,424 shares in the last quarter. Eaton Cambridge Inc. boosted its stake in shares of United Parcel Service by 4.4% during the fourth quarter. Eaton Cambridge Inc. now owns 3,235 shares of the transportation company's stock valued at $321,000 after purchasing an additional 135 shares in the last quarter. Finally, Bard Associates Inc. bought a new position in shares of United Parcel Service during the fourth quarter valued at approximately $61,000. 60.26% of the stock is owned by hedge funds and other institutional investors.

Key United Parcel Service News

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

• Positive Sentiment: UPS shares have been boosted by a broader bullish take on the stock after the Fed’s rate-cut pivot, with some investors viewing UPS as an attractive cyclical income play with a high dividend yield. A Dramatic Fed Pivot Just Unlocked a New Era of Growth for UPS
• Positive Sentiment: UPS-owned Roadie announced a same-day delivery partnership with Omaha Steaks ahead of Father’s Day, highlighting growth in its last-mile and same-day delivery services. From Cart to Cookout: Omaha Steaks and Roadie Power Same-Day Delivery for Father’s Day
• Neutral Sentiment: UPS was also the subject of valuation and stock-performance commentary, with some analysts questioning whether the recent pullback created a better long-term entry point rather than pointing to a new fundamental problem. Is It Time To Reconsider UPS NYSE: UPS After Recent Share Price Weakness?
• Neutral Sentiment: UPS met its deadline for retrofitting delivery vans with air conditioning, easing one labor-related pressure point after Teamsters scrutiny, though the issue also underscores ongoing union oversight. UPS meets deadline for retrofitting delivery vans with air conditioning
• Negative Sentiment: Separate UK news about a parcel delivery firm “evaluating options” for a depot closure and 3,000 jobs at risk adds to concerns about softness or restructuring pressures in the parcel-delivery industry, which could weigh on sentiment toward UPS. Massive parcel delivery firm could shut UK depot as it ‘evaluates options’ – with 3,000 jobs at risk
• Negative Sentiment: Some market commentary still frames UPS as a large-cap stock with limited growth runway, and recent coverage has also highlighted weakness in the shares over the past week. 3 Large-Cap Stocks That Concern Us

United Parcel Service Price Performance

Shares of UPS opened at $107.96 on Monday. The company has a market cap of $91.76 billion, a price-to-earnings ratio of 17.47, a price-to-earnings-growth ratio of 1.72 and a beta of 1.05. United Parcel Service, Inc. has a twelve month low of $82.00 and a twelve month high of $122.41. The company has a quick ratio of 1.21, a current ratio of 1.21 and a debt-to-equity ratio of 1.50. The company has a 50 day moving average of $103.23 and a two-hundred day moving average of $104.13.

United Parcel Service (NYSE:UPS - Get Free Report) last announced its earnings results on Tuesday, April 28th. The transportation company reported $1.07 earnings per share for the quarter, beating the consensus estimate of $1.02 by $0.05. The company had revenue of $21.20 billion during the quarter, compared to the consensus estimate of $20.99 billion. United Parcel Service had a net margin of 5.94% and a return on equity of 35.95%. United Parcel Service's revenue was down 1.4% compared to the same quarter last year. During the same period last year, the firm earned $1.49 earnings per share. As a group, analysts predict that United Parcel Service, Inc. will post 7.1 earnings per share for the current fiscal year.

United Parcel Service Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 4th. Stockholders of record on Monday, May 18th were paid a dividend of $1.64 per share. This represents a $6.56 annualized dividend and a dividend yield of 6.1%. The ex-dividend date was Monday, May 18th. United Parcel Service's payout ratio is presently 106.15%.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on UPS. Weiss Ratings downgraded shares of United Parcel Service from a "hold (c)" rating to a "sell (d+)" rating in a research note on Friday, May 8th. Susquehanna increased their price objective on shares of United Parcel Service from $116.00 to $118.00 and gave the company a "neutral" rating in a research note on Wednesday, April 29th. Citigroup increased their price objective on shares of United Parcel Service from $118.00 to $127.00 and gave the company a "buy" rating in a research note on Wednesday, April 29th. UBS Group dropped their price objective on shares of United Parcel Service from $125.00 to $123.00 and set a "buy" rating on the stock in a research note on Wednesday, April 29th. Finally, Evercore lowered their target price on shares of United Parcel Service from $115.00 to $113.00 and set an "in-line" rating for the company in a research note on Wednesday, April 22nd. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, eleven have given a Hold rating and four have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $111.50.

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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