Victory Capital Management Inc. Acquires 5,826,824 Shares of United Parcel Service, Inc. $UPS

Key Points

• Victory Capital Management increased its UPS stake by 72.9% in the fourth quarter, buying 5.83 million additional shares and bringing its total holdings to 13.82 million shares worth about $1.37 billion.
• UPS shares were trading around $107.96, near their 50-day and 200-day moving averages, and the stock is still down from its 52-week high of $122.41. The company has a market value of about $91.76 billion and offers a 6.1% dividend yield.
• For the latest quarter, UPS beat EPS and revenue estimates with earnings of $1.07 per share on $21.20 billion in revenue, though revenue still declined 1.4% year over year. Wall Street’s overall view remains cautious, with a Hold consensus rating and a target price of $111.50.

Victory Capital Management Inc. boosted its holdings in United Parcel Service, Inc. (NYSE:UPS - Free Report) by 72.9% during the 4th quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 13,818,314 shares of the transportation company's stock after acquiring an additional 5,826,824 shares during the quarter. United Parcel Service accounts for approximately 0.8% of Victory Capital Management Inc.'s investment portfolio, making the stock its 15th biggest holding. Victory Capital Management Inc. owned 1.63% of United Parcel Service worth $1,370,639,000 as of its most recent SEC filing.

Other large investors have also added to or reduced their stakes in the company. IFC & Insurance Marketing Inc. bought a new position in shares of United Parcel Service during the 4th quarter worth approximately $25,000. Coston McIsaac & Partners lifted its position in shares of United Parcel Service by 77.8% during the 4th quarter. Coston McIsaac & Partners now owns 272 shares of the transportation company's stock worth $27,000 after buying an additional 119 shares in the last quarter. Torren Management LLC bought a new position in shares of United Parcel Service during the 4th quarter worth approximately $29,000. Winch Advisory Services LLC lifted its position in shares of United Parcel Service by 37.3% during the 3rd quarter. Winch Advisory Services LLC now owns 456 shares of the transportation company's stock worth $38,000 after buying an additional 124 shares in the last quarter. Finally, Activest Wealth Management lifted its position in shares of United Parcel Service by 144.3% during the 4th quarter. Activest Wealth Management now owns 408 shares of the transportation company's stock worth $40,000 after buying an additional 241 shares in the last quarter. Institutional investors own 60.26% of the company's stock.

Key Headlines Impacting United Parcel Service

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

United Parcel Service Trading Down 0.6%

Shares of UPS stock opened at $107.96 on Friday. The company's fifty day simple moving average is $103.23 and its two-hundred day simple moving average is $104.06. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.21 and a quick ratio of 1.21. United Parcel Service, Inc. has a 1 year low of $82.00 and a 1 year high of $122.41. The stock has a market capitalization of $91.76 billion, a price-to-earnings ratio of 17.47, a PEG ratio of 1.73 and a beta of 1.05.

United Parcel Service (NYSE:UPS - Get Free Report) last issued its earnings results on Tuesday, April 28th. The transportation company reported $1.07 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 business had revenue of $21.20 billion for the quarter, compared to analysts' expectations of $20.99 billion. During the same quarter in the previous year, the firm posted $1.49 EPS. The business's revenue for the quarter was down 1.4% compared to the same quarter last year. As a group, analysts anticipate that United Parcel Service, Inc. will post 7.1 earnings per share for the current year.

United Parcel Service Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, June 4th. Shareholders of record on Monday, May 18th were issued a dividend of $1.64 per share. The ex-dividend date of this dividend was Monday, May 18th. This represents a $6.56 dividend on an annualized basis and a yield of 6.1%. United Parcel Service's payout ratio is presently 106.15%.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the stock. UBS Group dropped their target price on shares of United Parcel Service from $125.00 to $123.00 and set a "buy" rating on the stock in a research report on Wednesday, April 29th. Susquehanna lifted their target price on shares of United Parcel Service from $116.00 to $118.00 and gave the stock a "neutral" rating in a research report on Wednesday, April 29th. Evercore dropped their target price on shares of 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. Weiss Ratings cut shares of United Parcel Service from a "hold (c)" rating to a "sell (d+)" rating in a report on Friday, May 8th. Finally, Citigroup lifted their price target on shares of United Parcel Service from $118.00 to $127.00 and gave the stock a "buy" rating in a report on Wednesday, April 29th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, eleven have issued a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $111.50.

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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