Insider Buying: United Parcel Service, Inc. (NYSE:UPS) Director Purchases 5,000 Shares of Stock

Key Points

• UPS Director William R. Johnson purchased 5,000 shares of the company's stock at $86.50 per share, increasing his total ownership by 96.90% to 10,160 shares.
• United Parcel Service reported a quarterly EPS of $1.55, missing estimates, while revenue decreased by 2.7% year-over-year, totaling $21.20 billion.
• The company's most recent dividend was $1.64 per share, resulting in an annualized dividend of $6.56 with a yield of 7.8% and a payout ratio of 97.62%.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report) Director William R. Johnson acquired 5,000 shares of the business's stock in a transaction on Thursday, July 31st. The stock was purchased at an average cost of $86.50 per share, with a total value of $432,500.00. Following the acquisition, the director directly owned 10,160 shares of the company's stock, valued at $878,840. This represents a 96.90% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this hyperlink.

United Parcel Service Trading Down 1.9%

United Parcel Service stock traded down $1.62 during trading on Friday, reaching $84.54. The company had a trading volume of 11,258,979 shares, compared to its average volume of 6,268,639. 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 12-month low of $84.28 and a 12-month high of $145.01. The stock's 50 day moving average price is $99.53 and its two-hundred day moving average price is $106.42. The firm has a market capitalization of $71.59 billion, a price-to-earnings ratio of 12.58, a PEG ratio of 1.51 and a beta of 1.21.

United Parcel Service (NYSE:UPS - Get Free Report) last posted its earnings results on Tuesday, July 29th. The transportation company reported $1.55 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 firm had revenue of $21.20 billion for the quarter, compared to analyst estimates of $20.90 billion. During the same period in the previous year, the firm posted $1.79 earnings per share. The company's revenue for the quarter was down 2.7% on a year-over-year basis. As a group, equities analysts expect that United Parcel Service, Inc. will post 7.95 earnings per share for the current fiscal year.

United Parcel Service Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, June 5th. Investors of record on Monday, May 19th were issued a $1.64 dividend. The ex-dividend date of this dividend was Monday, May 19th. This represents a $6.56 annualized dividend and a yield of 7.8%. United Parcel Service's dividend payout ratio is currently 97.62%.

Institutional Trading of United Parcel Service

Several institutional investors have recently added to or reduced their stakes in the stock. Graybill Wealth Management LTD. bought a new stake in United Parcel Service during the first quarter valued at $26,000. Mid American Wealth Advisory Group Inc. bought a new stake in United Parcel Service during the second quarter valued at $26,000. Pinney & Scofield Inc. bought a new stake in United Parcel Service during the fourth quarter valued at $27,000. Citizens National Bank Trust Department increased its stake 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 purchasing an additional 210 shares during the last quarter. Finally, Fourth Dimension Wealth LLC bought a new stake in United Parcel Service during the fourth quarter valued at $28,000. 60.26% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of research firms have recently commented on UPS. Vertical Research reissued a "hold" rating and set a $103.00 target price on shares of United Parcel Service in a research note on Wednesday. Stifel Canada cut their target price on shares of United Parcel Service from $145.00 to $124.00 in a research note on Wednesday, April 30th. DA Davidson cut their target price on shares of United Parcel Service from $154.00 to $150.00 and set a "neutral" rating for the company in a research note on Wednesday, April 30th. HSBC cut shares of United Parcel Service from a "buy" rating to a "hold" rating and cut their target price for the stock from $140.00 to $105.00 in a research note on Thursday, May 1st. Finally, Wolfe Research cut their target price on shares of United Parcel Service from $113.00 to $112.00 and set an "outperform" rating for the company in a research note on Tuesday, July 1st. Two analysts have rated the stock with a sell rating, seventeen have given a hold rating, eleven have issued a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat, United Parcel Service currently has a consensus rating of "Hold" and a consensus target price of $112.81.

United Parcel Service Company Profile

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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