United Parcel Service, Inc. $UPS Shares Sold by Sumitomo Mitsui Trust Group Inc.

Key Points

• Sumitomo Mitsui Trust Group trimmed its UPS stake by 3.6% in the first quarter, selling 66,149 shares and leaving it with 1.78 million shares valued at about $175.2 million.
• UPS reported better-than-expected first-quarter earnings of $1.07 per share on $21.2 billion in revenue, though revenue still declined 1.4% year over year.
• The company continues to attract mixed analyst views: Citigroup raised its target to $132 and Stephens upgraded the stock to strong-buy, while the overall consensus remains Hold with a $111.10 price target.

Sumitomo Mitsui Trust Group Inc. reduced its stake in shares of United Parcel Service, Inc. (NYSE:UPS - Free Report) by 3.6% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,780,697 shares of the transportation company's stock after selling 66,149 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned about 0.21% of United Parcel Service worth $175,185,000 at the end of the most recent quarter.

Several other hedge funds have also recently bought and sold shares of the company. Norges Bank bought a new position in United Parcel Service in the 4th quarter worth about $902,446,000. Victory Capital Management Inc. raised its holdings in shares of United Parcel Service by 72.9% during the fourth quarter. Victory Capital Management Inc. now owns 13,818,314 shares of the transportation company's stock valued at $1,370,639,000 after buying an additional 5,826,824 shares during the last quarter. AQR Capital Management LLC raised its holdings in shares of United Parcel Service by 175.7% during the fourth quarter. AQR Capital Management LLC now owns 5,200,135 shares of the transportation company's stock valued at $515,801,000 after buying an additional 3,314,166 shares during the last quarter. Pacer Advisors Inc. boosted its position in shares of United Parcel Service by 507.8% during the fourth quarter. Pacer Advisors Inc. now owns 3,244,234 shares of the transportation company's stock worth $321,796,000 after buying an additional 2,710,470 shares during the period. Finally, Manning & Napier Advisors LLC bought a new position in United Parcel Service in the 4th quarter worth approximately $181,951,000. 60.26% of the stock is currently owned by institutional investors.

United Parcel Service Stock Performance

UPS stock opened at $110.62 on Friday. The company has a market capitalization of $94.03 billion, a price-to-earnings ratio of 17.90, a P/E/G ratio of 1.75 and a beta of 1.05. United Parcel Service, Inc. has a 12 month low of $82.00 and a 12 month high of $122.41. The firm has a 50 day moving average of $105.23 and a two-hundred day moving average of $105.54. The company has a quick ratio of 1.21, a current ratio of 1.21 and a debt-to-equity ratio of 1.50.

United Parcel Service (NYSE:UPS - Get Free Report) last posted its earnings results on Tuesday, April 28th. The transportation company reported $1.07 earnings per share for the quarter, beating the consensus estimate of $1.02 by $0.05. The company had revenue of $21.20 billion for the quarter, compared to analyst estimates of $20.99 billion. United Parcel Service had a return on equity of 35.95% and a net margin of 5.94%.The business's revenue was down 1.4% compared to the same quarter last year. During the same period last year, the company earned $1.49 earnings per share. As a group, equities analysts anticipate that United Parcel Service, Inc. will post 7.11 EPS for the current fiscal year.

United Parcel Service Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, June 4th. Investors of record on Monday, May 18th were paid a $1.64 dividend. The ex-dividend date was Monday, May 18th. This represents a $6.56 dividend on an annualized basis and a yield of 5.9%. United Parcel Service's dividend payout ratio (DPR) is presently 106.15%.

Analyst Ratings Changes

Several analysts recently commented on UPS shares. Evercore lowered their target price on United Parcel Service from $115.00 to $113.00 and set an "in-line" rating on the stock in a research report on Wednesday, April 22nd. Citigroup lifted their price target on United Parcel Service from $127.00 to $132.00 and gave the company a "buy" rating in a research report on Thursday. Stephens upgraded shares of United Parcel Service to a "strong-buy" rating in a report on Wednesday. Weiss Ratings downgraded United Parcel Service from a "hold (c)" rating to a "sell (d+)" rating in a report on Friday, May 8th. Finally, UBS Group reduced 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 report on Wednesday, April 29th. Two investment analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, ten have given a Hold rating and four have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $111.10.

Key Stories Impacting United Parcel Service

Here are the key news stories impacting United Parcel Service this week:

• Positive Sentiment: Citigroup raised its price target on UPS to $132 from $127 and kept a buy rating, implying meaningful upside from current levels. The bullish call supports sentiment around the stock. Benzinga report on Citigroup price-target increase
• Positive Sentiment: Stephens upgraded UPS to strong-buy, adding to the recent wave of favorable analyst commentary. Zacks report on Stephens upgrade
• Positive Sentiment: UPS drew unusual options activity, with traders buying 34,148 call options, about 33% above normal volume. Heavy call buying can signal bullish speculation.
• Positive Sentiment: UPS’s addition to key Russell defensive indexes could increase demand from index-linked funds and reinforce the stock’s defensive appeal. Yahoo Finance article on Russell defensive index addition
• Neutral Sentiment: Several articles highlighted that UPS remains heavily watched ahead of earnings, with some commentary arguing the company has a decent chance to beat estimates again based on its recent surprise history. Zacks earnings preview
• Negative Sentiment: Bearish commentary warned that UPS may face muted revenue growth, margin pressure, and possible dividend risk if free cash flow remains weak, which could cap further upside. Seeking Alpha bearish analysis
• Negative Sentiment: Another analysis said recent progress could be short-lived and pointed to intensified competition from Amazon’s logistics expansion as a threat to UPS’s growth and margins. Seeking Alpha consolidation analysis

United Parcel Service Profile

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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