Drexel Morgan & Co. Acquires 100,000 Shares of United Parcel Service, Inc. (NYSE:UPS)

Key Points

• Drexel Morgan & Co. significantly increased its holdings in United Parcel Service, Inc. by 91.1%, now owning 209,765 shares, which represents 4.8% of its portfolio.
• Several hedge funds have also increased their UPS positions, contributing to a total institutional ownership of 60.26% in the company.
• Analysts have varied outlooks on UPS stock, with two analysts rating it a sell and others issuing target price adjustments resulting in a consensus price target of $112.81.

Drexel Morgan & Co. lifted its position in United Parcel Service, Inc. (NYSE:UPS - Free Report) by 91.1% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 209,765 shares of the transportation company's stock after purchasing an additional 100,000 shares during the quarter. United Parcel Service accounts for 4.8% of Drexel Morgan & Co.'s portfolio, making the stock its 7th largest position. Drexel Morgan & Co.'s holdings in United Parcel Service were worth $23,072,000 at the end of the most recent reporting period.

A number of other large investors have also recently bought and sold shares of the stock. EagleClaw Capital Managment LLC grew its position in United Parcel Service by 0.3% in the first quarter. EagleClaw Capital Managment LLC now owns 38,032 shares of the transportation company's stock valued at $4,183,000 after acquiring an additional 127 shares during the period. ProVise Management Group LLC grew its position in United Parcel Service by 3.1% in the first quarter. ProVise Management Group LLC now owns 23,261 shares of the transportation company's stock valued at $2,558,000 after acquiring an additional 694 shares during the period. Jefferies Financial Group Inc. grew its position in United Parcel Service by 69.2% in the first quarter. Jefferies Financial Group Inc. now owns 14,507 shares of the transportation company's stock valued at $1,596,000 after acquiring an additional 5,935 shares during the period. Bank of Jackson Hole Trust grew its holdings in shares of United Parcel Service by 5.2% during the first quarter. Bank of Jackson Hole Trust now owns 2,526 shares of the transportation company's stock worth $301,000 after purchasing an additional 125 shares during the last quarter. Finally, King Wealth Management Group grew its holdings in shares of United Parcel Service by 274.9% during the first quarter. King Wealth Management Group now owns 7,746 shares of the transportation company's stock worth $852,000 after purchasing an additional 5,680 shares during the last quarter. 60.26% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

UPS has been the topic of several research analyst reports. Vertical Research restated a "hold" rating and set a $103.00 target price on shares of United Parcel Service in a report on Wednesday. Bernstein Bank increased their target price on United Parcel Service from $132.00 to $133.00 in a report on Wednesday, April 30th. Wall Street Zen cut United Parcel Service from a "buy" rating to a "hold" rating in a report on Wednesday, May 7th. DA Davidson decreased their target price on United Parcel Service from $154.00 to $150.00 and set a "neutral" rating on the stock in a report on Wednesday, April 30th. Finally, Stifel Canada decreased their target price on United Parcel Service from $145.00 to $124.00 in a report on Wednesday, April 30th. Two equities research analysts have rated the stock with a sell rating, seventeen have assigned a hold rating, eleven have issued a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $112.81.

United Parcel Service Trading Down 1.9%

UPS traded down $1.62 during midday trading on Friday, reaching $84.54. 11,258,979 shares of the company were exchanged, compared to its average volume of 6,969,219. The company has a debt-to-equity ratio of 1.51, a quick ratio of 1.09 and a current ratio of 1.32. United Parcel Service, Inc. has a one year low of $84.28 and a one year high of $145.01. The stock has a market capitalization of $71.59 billion, a P/E ratio of 12.58, a PEG ratio of 1.56 and a beta of 1.12. The stock's 50-day simple moving average is $99.32 and its 200 day simple moving average is $106.14.

United Parcel Service (NYSE:UPS - Get Free Report) last issued its earnings results on Tuesday, July 29th. The transportation company reported $1.55 earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $20.90 billion. During the same quarter last year, the business posted $1.79 EPS. United Parcel Service's quarterly revenue was down 2.7% on a year-over-year basis. As a group, analysts forecast that United Parcel Service, Inc. will post 7.95 earnings per share for the current fiscal year.

United Parcel Service Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 5th. Stockholders of record on Monday, May 19th were given a dividend of $1.64 per share. The ex-dividend date of this dividend was Monday, May 19th. This represents a $6.56 dividend on an annualized basis and a dividend yield of 7.8%. United Parcel Service's dividend payout ratio (DPR) is currently 97.62%.

Insider Transactions at United Parcel Service

In other United Parcel Service news, Director William R. Johnson purchased 5,000 shares of the company's stock in a transaction dated Thursday, July 31st. The shares were bought at an average price of $86.50 per share, with a total value of $432,500.00. Following the completion of the transaction, the director directly owned 10,160 shares in the company, valued at $878,840. This trade represents a 96.90% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Carol B. Tome purchased 11,682 shares of the company's stock in a transaction dated Friday, August 1st. The shares were acquired at an average cost of $85.67 per share, for a total transaction of $1,000,796.94. Following the transaction, the chief executive officer owned 24,718 shares of the company's stock, valued at $2,117,591.06. This trade represents a 89.61% increase in their ownership of the stock. The disclosure for this purchase can be found here. Company insiders own 0.13% of the company's stock.

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.