JPMorgan Chase & Co. Issues Pessimistic Forecast for United Parcel Service (NYSE:UPS) Stock Price

Key Points

• JPMorgan Chase & Co. has downgraded its target price for United Parcel Service (UPS) from $96.00 to $85.00, indicating a potential downside of 1.51% from the current stock price.
• Other analysts have also reduced their target prices for UPS, with Susquehanna lowering it from $110.00 to $100.00 and Bank of America from $83.00 to $81.00, reflecting a general trend of declining confidence in the stock.
• Despite the negative outlook, UPS shares traded at $86.31 on Wednesday, with significant insider buying occurring recently, including a notable purchase by CEO Carol B. Tome.

United Parcel Service (NYSE:UPS - Get Free Report) had its target price reduced by investment analysts at JPMorgan Chase & Co. from $96.00 to $85.00 in a report issued on Wednesday,Benzinga reports. The firm presently has a "neutral" rating on the transportation company's stock. JPMorgan Chase & Co.'s target price indicates a potential downside of 1.51% from the company's current price.

UPS has been the topic of a number of other research reports. Susquehanna dropped their price objective on United Parcel Service from $110.00 to $100.00 and set a "neutral" rating on the stock in a report on Wednesday, July 30th. Bank of America reduced their price objective on United Parcel Service from $83.00 to $81.00 and set an "underperform" rating on the stock in a research report on Friday, September 26th. BMO Capital Markets reiterated a "market perform" rating and set a $96.00 target price (down from $125.00) on shares of United Parcel Service in a research report on Friday, September 19th. Citigroup reduced their target price on United Parcel Service from $127.00 to $114.00 and set a "buy" rating on the stock in a research report on Thursday, July 31st. Finally, Wall Street Zen lowered United Parcel Service from a "hold" rating to a "sell" rating in a research note on Saturday, September 20th. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, fifteen have given a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $109.38.

United Parcel Service Stock Performance

Shares of NYSE:UPS traded up $0.33 during trading on Wednesday, reaching $86.31. The company had a trading volume of 3,877,796 shares, compared to its average volume of 6,740,153. The firm has a market capitalization of $73.15 billion, a price-to-earnings ratio of 12.84, a price-to-earnings-growth ratio of 1.60 and a beta of 1.10. The company has a debt-to-equity ratio of 1.51, a current ratio of 1.32 and a quick ratio of 1.32. The stock's fifty day moving average price is $85.81 and its 200 day moving average price is $94.91. United Parcel Service has a fifty-two week low of $82.00 and a fifty-two week high of $145.01.

United Parcel Service (NYSE:UPS - Get Free Report) last released its earnings results on Tuesday, July 29th. The transportation company reported $1.55 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.56 by ($0.01). The company had revenue of $21.20 billion during the quarter, compared to analyst estimates of $20.90 billion. United Parcel Service had a net margin of 6.34% and a return on equity of 39.61%. The company's revenue for the quarter was down 2.7% on a year-over-year basis. During the same period in the previous year, the firm posted $1.79 EPS. As a group, equities research analysts predict that United Parcel Service will post 7.95 EPS for the current year.

Insiders Place Their Bets

In other United Parcel Service news, Director Christiana Smith Shi acquired 500 shares of the company's stock in a transaction on Friday, August 22nd. The shares were bought at an average cost of $88.17 per share, for a total transaction of $44,085.00. Following the acquisition, the director directly owned 500 shares of the company's stock, valued at $44,085. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Carol B. Tome acquired 11,682 shares of the company's stock in a transaction on Friday, August 1st. The shares were acquired at an average price of $85.67 per share, for a total transaction of $1,000,796.94. Following the completion of the acquisition, 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 ownership of the stock. The disclosure for this purchase can be found here. Insiders have acquired 17,182 shares of company stock worth $1,477,382 in the last three months. 0.13% of the stock is owned by insiders.

Institutional Investors Weigh In On United Parcel Service

Several hedge funds and other institutional investors have recently bought and sold shares of UPS. Evelyn Partners Investment Management Europe Ltd grew its position in shares of United Parcel Service by 110.1% in the 2nd quarter. Evelyn Partners Investment Management Europe Ltd now owns 250 shares of the transportation company's stock worth $25,000 after acquiring an additional 131 shares in the last quarter. Graybill Wealth Management LTD. bought a new stake in shares of United Parcel Service in the 1st quarter valued at approximately $26,000. Mid American Wealth Advisory Group Inc. bought a new stake in shares of United Parcel Service in the 2nd quarter valued at approximately $26,000. Citizens National Bank Trust Department increased its holdings in shares of United Parcel Service by 525.0% in the 1st quarter. Citizens National Bank Trust Department now owns 250 shares of the transportation company's stock valued at $27,000 after acquiring an additional 210 shares during the last quarter. Finally, Hemington Wealth Management increased its holdings in shares of United Parcel Service by 68.9% in the 1st quarter. Hemington Wealth Management now owns 282 shares of the transportation company's stock valued at $31,000 after acquiring an additional 115 shares during the last quarter. 60.26% of the stock is currently owned by hedge funds and other institutional investors.

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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