Vanguard Group Inc. Buys 999,832 Shares of United Parcel Service, Inc. (NYSE:UPS)

Key Points

• Vanguard Group Inc. increased its stake in United Parcel Service, owning 66.1 million shares after purchasing nearly a million additional shares, representing approximately 7.74% of the company's stock, valued at $7.27 billion.
• Recent research reports led to price target reductions for UPS from multiple analysts, with a consensus rating of "Hold" and an average price target of $112.81.
• UPS announced a quarterly dividend of $1.64 per share, equating to an annual yield of 7.6%, while also reporting earnings of $1.55 per share for its last quarter, slightly missing analyst expectations.

Vanguard Group Inc. boosted its stake in shares of United Parcel Service, Inc. (NYSE:UPS - Free Report) by 1.5% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 66,136,226 shares of the transportation company's stock after buying an additional 999,832 shares during the period. Vanguard Group Inc. owned about 7.74% of United Parcel Service worth $7,274,323,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Gallacher Capital Management LLC acquired a new stake in shares of United Parcel Service during the 1st quarter valued at about $620,000. Garde Capital Inc. acquired a new stake in United Parcel Service in the first quarter valued at approximately $37,000. Golden State Wealth Management LLC grew its position in United Parcel Service by 61.3% in the first quarter. Golden State Wealth Management LLC now owns 1,576 shares of the transportation company's stock worth $173,000 after acquiring an additional 599 shares in the last quarter. CWA Asset Management Group LLC increased its stake in shares of United Parcel Service by 5.9% during the 1st quarter. CWA Asset Management Group LLC now owns 3,467 shares of the transportation company's stock worth $381,000 after purchasing an additional 193 shares during the last quarter. Finally, Advisor Resource Council bought a new position in shares of United Parcel Service during the 1st quarter valued at $437,000. 60.26% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at United Parcel Service

In other news, CEO Carol B. Tome acquired 11,682 shares of the firm's stock in a transaction 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 of the company's stock, valued at $2,117,591.06. This represents a 89.61% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director William R. Johnson bought 5,000 shares of the business's stock in a transaction dated Thursday, July 31st. The stock was purchased at an average price of $86.50 per share, with a total value of $432,500.00. Following the purchase, the director directly owned 10,160 shares of the company's stock, valued at $878,840. The trade was a 96.90% increase in their position. The disclosure for this purchase can be found here. Corporate insiders own 0.13% of the company's stock.

Analysts Set New Price Targets

A number of brokerages recently issued reports on UPS. DA Davidson decreased their price objective on shares of United Parcel Service from $154.00 to $150.00 and set a "neutral" rating for the company in a report on Wednesday, April 30th. JPMorgan Chase & Co. reduced their price target on United Parcel Service from $110.00 to $107.00 and set a "neutral" rating for the company in a research report on Tuesday, July 8th. Oppenheimer lowered their price objective on United Parcel Service from $114.00 to $100.00 and set an "outperform" rating on the stock in a report on Wednesday, July 30th. UBS Group cut their price objective on United Parcel Service from $124.00 to $118.00 and set a "buy" rating on the stock in a research note on Wednesday, July 30th. Finally, BMO Capital Markets decreased their target price on United Parcel Service from $130.00 to $125.00 and set an "outperform" rating for the company in a research report on Wednesday, April 30th. Two research analysts have rated the stock with a sell rating, seventeen have given a hold rating, eleven have assigned a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $112.81.

United Parcel Service Stock Performance

UPS traded up $0.16 during trading on Friday, reaching $86.65. 6,275,090 shares of the company's stock were exchanged, compared to its average volume of 6,310,072. The company has a market capitalization of $73.38 billion, a P/E ratio of 12.89, a PEG ratio of 1.57 and a beta of 1.12. The company has a quick ratio of 1.09, a current ratio of 1.32 and a debt-to-equity ratio of 1.51. The business has a 50 day moving average price of $98.45 and a 200 day moving average price of $104.95. United Parcel Service, Inc. has a fifty-two week low of $84.28 and a fifty-two week high of $145.01.

United Parcel Service (NYSE:UPS - Get Free Report) last released 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). United Parcel Service had a net margin of 6.34% and a return on equity of 39.61%. The company had revenue of $21.20 billion for the quarter, compared to analyst estimates of $20.90 billion. During the same period in the previous year, the firm posted $1.79 earnings per share. The firm's revenue for the quarter was down 2.7% compared to the same quarter last year. As a group, analysts predict that United Parcel Service, Inc. will post 7.95 earnings per share for the current fiscal year.

United Parcel Service Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 4th. Shareholders of record on Monday, August 18th will be paid a dividend of $1.64 per share. This represents a $6.56 annualized dividend and a yield of 7.6%. The ex-dividend date is Monday, August 18th. United Parcel Service's dividend payout ratio is currently 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.