Kayne Anderson Rudnick Investment Management LLC Decreases Stake in United Parcel Service, Inc. $UPS

Key Points

• Kayne Anderson Rudnick Investment Management LLC significantly reduced its stake in United Parcel Service, Inc. by 85.5%, now holding 9,724 shares valued at approximately $1,070,000.
• United Parcel Service reported $1.55 EPS for the last quarter, slightly missing the expected $1.56, with revenue of $21.20 billion, down 2.7% year-over-year.
• The company announced a quarterly dividend of $1.64 per share, with a yield of 7.5%, indicating a high payout ratio of 97.62%.

Kayne Anderson Rudnick Investment Management LLC reduced its stake in United Parcel Service, Inc. (NYSE:UPS - Free Report) by 85.5% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 9,724 shares of the transportation company's stock after selling 57,353 shares during the period. Kayne Anderson Rudnick Investment Management LLC's holdings in United Parcel Service were worth $1,070,000 at the end of the most recent reporting period.

A number of other large investors have also bought and sold shares of UPS. Brighton Jones LLC increased its stake 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 worth $1,529,000 after purchasing an additional 4,723 shares during the period. Quarry LP bought a new stake in shares of United Parcel Service in the 4th quarter worth approximately $65,000. Marshall & Sterling Wealth Advisors Inc. bought a new stake in shares of United Parcel Service in the 4th quarter worth approximately $31,000. Bellwether Advisors LLC bought a new stake in shares of United Parcel Service in the 4th quarter worth approximately $107,000. Finally, The Manufacturers Life Insurance Company grew its position in shares of United Parcel Service by 3.4% in the 4th quarter. The Manufacturers Life Insurance Company now owns 606,895 shares of the transportation company's stock worth $76,529,000 after buying an additional 20,160 shares during the last quarter. 60.26% of the stock is owned by hedge funds and other institutional investors.

United Parcel Service Price Performance

Shares of UPS stock opened at $87.48 on Wednesday. The stock has a market cap of $74.15 billion, a price-to-earnings ratio of 13.02, a PEG ratio of 1.61 and a beta of 1.12. The business's fifty day moving average is $95.38 and its 200 day moving average is $101.57. United Parcel Service, Inc. has a twelve month low of $84.28 and a twelve month high of $145.01. The company has a quick ratio of 1.32, a current ratio of 1.32 and a debt-to-equity ratio of 1.51.

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

United Parcel Service Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Shareholders of record on Monday, August 18th will be issued a $1.64 dividend. This represents a $6.56 annualized dividend and a yield of 7.5%. The ex-dividend date of this dividend is Monday, August 18th. United Parcel Service's payout ratio is 97.62%.

Insiders Place Their Bets

In related news, Director William R. Johnson bought 5,000 shares of the company's stock in a transaction on Thursday, July 31st. The shares were acquired at an average cost of $86.50 per share, with a total value of $432,500.00. Following the completion of the acquisition, the director owned 10,160 shares of the company's stock, valued at $878,840. The trade was a 96.90% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Carol B. Tome bought 11,682 shares of the company's stock in a transaction on Friday, August 1st. The stock was bought at an average cost of $85.67 per share, for a total transaction of $1,000,796.94. Following the completion of the acquisition, the chief executive officer directly owned 24,718 shares of the company's stock, valued at approximately $2,117,591.06. This represents a 89.61% increase in their position. The disclosure for this purchase can be found here. Over the last three months, insiders have purchased 17,182 shares of company stock valued at $1,477,382. 0.13% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

UPS has been the topic of a number of recent analyst reports. Wells Fargo & Company cut their price objective on United Parcel Service from $98.00 to $91.00 and set an "equal weight" rating on the stock in a research report on Wednesday, July 30th. Galvan Research cut their price objective on United Parcel Service from $126.00 to $124.00 and set a "buy" rating on the stock in a research report on Monday, June 30th. BNP Paribas Exane upgraded United Parcel Service from an "underperform" rating to a "neutral" rating and set a $100.00 price objective on the stock in a research report on Thursday, July 3rd. TD Cowen cut their price objective on United Parcel Service from $117.00 to $107.00 in a research report on Wednesday, April 30th. Finally, BMO Capital Markets cut their price objective on United Parcel Service from $130.00 to $125.00 and set an "outperform" rating on the stock in a research report on Wednesday, April 30th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, fifteen have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $112.81.

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.

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