United Parcel Service, Inc. $UPS Shares Sold by KCM Investment Advisors LLC

Key Points

• KCM Investment Advisors LLC cut its UPS stake by 34.3% in the fourth quarter, selling 9,300 shares and ending with 17,779 shares valued at about $1.76 million.
• UPS reported better-than-expected Q1 earnings, with EPS of $1.07 versus the $1.02 consensus and revenue of $21.2 billion, though revenue was still down 1.4% from a year earlier.
• The company paid a quarterly dividend of $1.64, equal to an annualized yield of about 6.1%, while analysts currently assign UPS a consensus Hold rating with an average price target of $111.50.

KCM Investment Advisors LLC lowered its holdings in shares of United Parcel Service, Inc. (NYSE:UPS - Free Report) by 34.3% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 17,779 shares of the transportation company's stock after selling 9,300 shares during the period. KCM Investment Advisors LLC's holdings in United Parcel Service were worth $1,764,000 as of its most recent SEC filing.

A number of other large investors have also recently bought and sold shares of UPS. Norges Bank acquired a new stake in United Parcel Service during the 4th quarter worth $902,446,000. Victory Capital Management Inc. boosted its stake in United Parcel Service by 72.9% during the 4th quarter. Victory Capital Management Inc. now owns 13,818,314 shares of the transportation company's stock worth $1,370,639,000 after purchasing an additional 5,826,824 shares during the period. Pacer Advisors Inc. boosted its stake in United Parcel Service by 507.8% during the 4th quarter. Pacer Advisors Inc. now owns 3,244,234 shares of the transportation company's stock worth $321,796,000 after purchasing an additional 2,710,470 shares during the period. Manning & Napier Advisors LLC acquired a new stake in United Parcel Service during the 4th quarter worth $181,951,000. Finally, Vanguard Group Inc. boosted its stake in United Parcel Service by 1.8% during the 4th quarter. Vanguard Group Inc. now owns 68,496,420 shares of the transportation company's stock worth $6,794,160,000 after purchasing an additional 1,218,432 shares during the period. Institutional investors and hedge funds own 60.26% of the company's stock.

United Parcel Service Stock Down 0.1%

UPS stock opened at $107.96 on Monday. United Parcel Service, Inc. has a one year low of $82.00 and a one year high of $122.41. The stock has a market capitalization of $91.76 billion, a PE ratio of 17.47, a price-to-earnings-growth ratio of 1.72 and a beta of 1.05. The company has a debt-to-equity ratio of 1.50, a quick ratio of 1.21 and a current ratio of 1.21. The company has a fifty day moving average of $103.23 and a 200-day moving average of $104.13.

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

United Parcel Service Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, June 4th. Stockholders of record on Monday, May 18th were paid a $1.64 dividend. 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 dividend payout ratio (DPR) is 106.15%.

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

Analysts Set New Price Targets

A number of analysts recently weighed in on UPS shares. Citigroup increased their price target on shares of United Parcel Service from $118.00 to $127.00 and gave the stock a "buy" rating in a research note on Wednesday, April 29th. Evercore decreased their price target 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. Weiss Ratings cut 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 target on shares of United Parcel Service from $116.00 to $118.00 and gave the stock a "neutral" rating in a research note on Wednesday, April 29th. Finally, UBS Group decreased their price target on shares of United Parcel Service from $125.00 to $123.00 and set a "buy" rating for the company in a research note on Wednesday, April 29th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, eleven have issued a Hold rating and four have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, United Parcel Service presently has a consensus rating of "Hold" and an average price target of $111.50.

About United Parcel Service

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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