United Parcel Service (NYSE:UPS) Shares Climb 2.4% - Here's What Happened

Key Points

• UPS shares rose 2.4% on Monday to about $110.86, though trading volume was 22% below its average.
• Analyst views were mixed: MarketBeat reported an average Hold rating and an average price target of $118.45.
• UPS reported quarterly earnings of $1.69 per share on $22.85 billion in revenue and announced a quarterly dividend of $1.64 per share, equivalent to a 5.9% yield.

Shares of United Parcel Service, Inc. (NYSE:UPS - Get Free Report) were up 2.4% during trading on Monday. The stock traded as high as $111.83 and last traded at $110.8570. Approximately 4,393,184 shares changed hands during mid-day trading, a decline of 22% from the average session volume of 5,629,205 shares. The stock had previously closed at $108.30.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on UPS shares. BNP Paribas Exane cut their price objective on United Parcel Service from $90.00 to $85.00 and set an "underperform" rating for the company in a research report on Wednesday, September 30th. Citizens Jmp assumed coverage on United Parcel Service in a report on Wednesday, July 15th. They set a "market perform" rating on the stock. JPMorgan Chase & Co. dropped their price target on United Parcel Service from $118.00 to $115.00 and set a "neutral" rating for the company in a research report on Wednesday, July 29th. Raymond James Financial raised their price target on United Parcel Service from $127.00 to $131.00 and gave the stock a "strong-buy" rating in a research report on Wednesday, July 29th. Finally, Susquehanna boosted their price target on United Parcel Service from $118.00 to $120.00 and gave the stock a "neutral" rating in a report on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, United Parcel Service has an average rating of "Hold" and an average target price of $118.45.

United Parcel Service Price Performance

The company's 50 day simple moving average is $99.81 and its 200 day simple moving average is $104.71. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 1.67. The stock has a market capitalization of $94.31 billion, a PE ratio of 21.32, a PEG ratio of 1.95 and a beta of 0.98.

United Parcel Service (NYSE:UPS - Get Free Report) last issued its quarterly earnings results on Wednesday, November 4th. The transportation company reported $1.69 earnings per share for the quarter. United Parcel Service had a return on equity of 37.78% and a net margin of 4.84%. The company had revenue of $22.85 billion for the quarter. On average, equities analysts anticipate that United Parcel Service, Inc. will post 7.28 earnings per share for the current year.

United Parcel Service Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 3rd. Stockholders of record on Monday, November 16th will be issued a dividend of $1.64 per share. This represents a $6.56 annualized dividend and a dividend yield of 5.9%. The ex-dividend date is Monday, November 16th. United Parcel Service's dividend payout ratio is presently 126.15%.

Insider Activity

In related news, insider Matthew Guffey sold 8,318 shares of the firm's stock in a transaction that occurred on Wednesday, October 28th. The shares were sold at an average price of $105.39, for a total value of $876,634.02. Following the sale, the insider directly owned 271 shares of the company's stock, valued at approximately $28,560.69. This trade represents a 96.84% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 0.19% of the company's stock.

Hedge Funds Weigh In On United Parcel Service

A number of large investors have recently bought and sold shares of UPS. Bank of America Corp DE increased its stake in United Parcel Service by 23.3% during the first quarter. Bank of America Corp DE now owns 9,728,123 shares of the transportation company's stock worth $957,053,000 after acquiring an additional 1,836,651 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in shares of United Parcel Service by 5.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 5,037,626 shares of the transportation company's stock valued at $495,411,000 after purchasing an additional 271,646 shares in the last quarter. Bank of New York Mellon Corp lifted its stake in shares of United Parcel Service by 2.1% in the 1st quarter. Bank of New York Mellon Corp now owns 4,639,324 shares of the transportation company's stock valued at $456,417,000 after purchasing an additional 97,582 shares in the last quarter. First Trust Advisors LP lifted its stake in shares of United Parcel Service by 37.4% in the 1st quarter. First Trust Advisors LP now owns 3,631,133 shares of the transportation company's stock valued at $357,231,000 after purchasing an additional 988,442 shares in the last quarter. Finally, Pacer Advisors Inc. grew its holdings in shares of United Parcel Service by 8.2% during the 1st quarter. Pacer Advisors Inc. now owns 3,510,630 shares of the transportation company's stock worth $345,376,000 after purchasing an additional 266,396 shares during the period. Hedge funds and other institutional investors own 60.26% of the company's stock.

About United Parcel Service

United Parcel Service, Inc (UPS) is a global package delivery and logistics company. Its services include domestic and international shipping, air and ground delivery, freight forwarding, customs brokerage, and supply chain management.

UPS also provides solutions for businesses, including warehousing, inventory management, healthcare logistics, and returns processing. Its network serves customers in more than 200 countries and territories.

Founded in Seattle in 1907 as the American Messenger Company, UPS is headquartered in Atlanta, Georgia.

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