Hourglass Capital LLC Increases Stake in United Parcel Service, Inc. $UPS

Key Points

• Hourglass Capital LLC increased its stake in United Parcel Service (UPS) by 14.4% in the second quarter, now holding 38,835 shares valued at approximately $3.92 million.
• Several research firms have downgraded UPS, with JPMorgan Chase & Co. lowering its price target from $96 to $85, maintaining a "neutral" rating.
• UPS announced a quarterly dividend of $1.64 per share with a 7.8% yield, indicating a high dividend payout ratio of 97.62%.

Hourglass Capital LLC lifted its stake in shares of United Parcel Service, Inc. (NYSE:UPS - Free Report) by 14.4% during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 38,835 shares of the transportation company's stock after acquiring an additional 4,880 shares during the period. Hourglass Capital LLC's holdings in United Parcel Service were worth $3,920,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds also recently added to or reduced their stakes in UPS. Brighton Jones LLC raised its holdings in United Parcel Service by 63.8% in the 4th quarter. Brighton Jones LLC now owns 12,126 shares of the transportation company's stock valued at $1,529,000 after buying an additional 4,723 shares during the period. Ritholtz Wealth Management grew its position in United Parcel Service by 95.1% in the 1st quarter. Ritholtz Wealth Management now owns 4,531 shares of the transportation company's stock valued at $498,000 after acquiring an additional 2,209 shares in the last quarter. Mission Wealth Management LP grew its position in United Parcel Service by 2.4% in the 1st quarter. Mission Wealth Management LP now owns 11,374 shares of the transportation company's stock valued at $1,251,000 after acquiring an additional 266 shares in the last quarter. Inscription Capital LLC acquired a new position in United Parcel Service in the 1st quarter valued at about $150,000. Finally, Chicago Capital LLC grew its position in United Parcel Service by 7.1% in the 1st quarter. Chicago Capital LLC now owns 5,026 shares of the transportation company's stock valued at $553,000 after acquiring an additional 335 shares in the last quarter. 60.26% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research firms have weighed in on UPS. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of United Parcel Service in a research report on Wednesday, October 8th. JPMorgan Chase & Co. lowered their price objective on United Parcel Service from $96.00 to $85.00 and set a "neutral" rating for the company in a research report on Wednesday, October 8th. Wells Fargo & Company lowered their price objective on United Parcel Service from $98.00 to $91.00 and set an "equal weight" rating for the company in a research report on Wednesday, July 30th. BNP Paribas Exane raised United Parcel Service from an "underperform" rating to a "neutral" rating and set a $100.00 price objective for the company in a research report on Thursday, July 3rd. Finally, Susquehanna lowered their price objective on United Parcel Service from $110.00 to $100.00 and set a "neutral" rating for the company in a research report on Wednesday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, fifteen have issued a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $109.31.

Insider Buying and Selling

In related news, CEO Carol B. Tome bought 11,682 shares of the stock in a transaction dated Friday, August 1st. The stock was acquired at an average price of $85.67 per share, for a total transaction 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 represents a 89.61% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Christiana Smith Shi acquired 500 shares of the stock in a transaction on Friday, August 22nd. The shares were acquired at an average price of $88.17 per share, with a total value of $44,085.00. Following the purchase, the director owned 500 shares in the company, valued at $44,085. This represents a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last ninety days, insiders have acquired 17,182 shares of company stock worth $1,477,382. 0.13% of the stock is owned by company insiders.

United Parcel Service Price Performance

United Parcel Service stock opened at $84.10 on Thursday. The business has a 50 day simple moving average of $85.60 and a 200-day simple moving average of $93.90. United Parcel Service, Inc. has a 12 month low of $82.00 and a 12 month high of $145.01. The stock has a market capitalization of $71.28 billion, a PE ratio of 12.51, a price-to-earnings-growth ratio of 1.56 and a beta of 1.10. The company has a debt-to-equity ratio of 1.51, a current ratio of 1.32 and a quick ratio of 1.32.

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

United Parcel Service Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Monday, August 18th were given a dividend of $1.64 per share. The ex-dividend date was Monday, August 18th. This represents a $6.56 annualized dividend and a yield of 7.8%. United Parcel Service's dividend payout ratio is 97.62%.

United Parcel Service Company Profile

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.

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