Vestmark Advisory Solutions Inc. Buys 14,447 Shares of United Parcel Service, Inc. (NYSE:UPS)

Key Points

• Vestmark Advisory Solutions Inc. increased its stake in United Parcel Service (UPS) by 75.1%, acquiring an additional 14,447 shares and bringing its total holdings to 33,674 shares valued at approximately $3.7 million.
• UPS announced a quarterly dividend of $1.64 per share, with an annualized dividend yield of 7.4%, signaling a strong commitment to returning value to shareholders despite a net margin of 6.34%.
• Analysts have mixed viewpoints on UPS, with a consensus target price of $112.81; the stock recently faced downgrades to hold ratings from several firms.

Vestmark Advisory Solutions Inc. grew its stake in shares of United Parcel Service, Inc. (NYSE:UPS - Free Report) by 75.1% in the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor owned 33,674 shares of the transportation company's stock after acquiring an additional 14,447 shares during the period. Vestmark Advisory Solutions Inc.'s holdings in United Parcel Service were worth $3,704,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. Graybill Wealth Management LTD. purchased a new position in United Parcel Service during the first quarter valued at approximately $26,000. Pinney & Scofield Inc. purchased a new position in United Parcel Service during the fourth quarter valued at approximately $27,000. Citizens National Bank Trust Department increased its holdings in United Parcel Service by 525.0% during the first quarter. Citizens National Bank Trust Department now owns 250 shares of the transportation company's stock valued at $27,000 after buying an additional 210 shares during the period. Fourth Dimension Wealth LLC purchased a new position in United Parcel Service during the fourth quarter valued at approximately $28,000. Finally, Marshall & Sterling Wealth Advisors Inc. purchased a new position in United Parcel Service during the fourth quarter valued at approximately $31,000. Institutional investors own 60.26% of the company's stock.

United Parcel Service Price Performance

NYSE:UPS opened at $88.52 on Friday. United Parcel Service, Inc. has a one year low of $84.28 and a one year high of $145.01. The company has a debt-to-equity ratio of 1.51, a quick ratio of 1.32 and a current ratio of 1.32. The firm has a market cap of $74.96 billion, a price-to-earnings ratio of 13.17, a PEG ratio of 1.63 and a beta of 1.12. The firm's fifty day moving average is $97.24 and its two-hundred day moving average is $103.03.

United Parcel Service (NYSE:UPS - Get Free Report) last posted its quarterly 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 net margin of 6.34% and a return on equity of 39.61%. The business had revenue of $21.20 billion during the quarter, compared to analysts' expectations of $20.90 billion. During the same period in the previous year, the company posted $1.79 earnings per share. United Parcel Service's revenue for the quarter 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 year.

United Parcel Service Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders 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 dividend yield of 7.4%. The ex-dividend date of this dividend is Monday, August 18th. United Parcel Service's dividend payout ratio is presently 97.62%.

Insider Activity

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

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the stock. Stephens cut their price objective on shares of United Parcel Service from $110.00 to $101.00 in a report on Wednesday, April 30th. HSBC lowered shares of United Parcel Service from a "buy" rating to a "hold" rating and cut their price objective for the company from $140.00 to $105.00 in a report on Thursday, May 1st. Wells Fargo & Company cut their price objective on shares of United Parcel Service from $98.00 to $91.00 and set an "equal weight" rating on the stock in a report on Wednesday, July 30th. UBS Group cut their price objective on shares of United Parcel Service from $124.00 to $118.00 and set a "buy" rating on the stock in a report on Wednesday, July 30th. Finally, Susquehanna cut their price target on shares of United Parcel Service from $110.00 to $100.00 and set a "neutral" rating on the stock in a report on Wednesday, July 30th. Two investment analysts have rated the stock with a sell rating, seventeen have assigned a hold rating, eleven have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price 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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