United Parcel Service, Inc. (NYSE:UPS) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• Analysts have given United Parcel Service, Inc. an average rating of "Hold", with three sell ratings, fifteen hold ratings, ten buy ratings, and one strong buy rating.
• The company recently reported quarterly earnings of $1.55 per share, slightly missing estimates, and had a revenue of $21.20 billion, down 2.7% year-over-year.
• United Parcel Service declared a quarterly dividend of $1.64, resulting in an annualized yield of 7.7%, with a payout ratio of nearly 98%.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report) has received an average rating of "Hold" from the twenty-nine brokerages that are covering the stock, MarketBeat Ratings reports. Three investment analysts have rated the stock with a sell rating, fifteen have issued a hold rating, ten have issued a buy rating and one has issued a strong buy rating on the company. The average 1-year price objective among brokers that have covered the stock in the last year is $110.4063.

A number of analysts have commented on the stock. Galvan Research lowered their target price on shares of United Parcel Service from $126.00 to $124.00 and set a "buy" rating for the company in a report on Monday, June 30th. Wall Street Zen lowered shares of United Parcel Service from a "hold" rating to a "sell" rating in a report on Saturday, September 20th. Susquehanna lowered their target price on shares of United Parcel Service from $110.00 to $100.00 and set a "neutral" rating for the company in a report on Wednesday, July 30th. Wells Fargo & Company lowered their target price on shares of United Parcel Service from $98.00 to $91.00 and set an "equal weight" rating for the company in a report on Wednesday, July 30th. Finally, Vertical Research reissued a "hold" rating and issued a $103.00 price target on shares of United Parcel Service in a report on Wednesday, July 30th.

United Parcel Service Stock Performance

UPS stock opened at $85.65 on Friday. 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 company has a 50 day moving average price of $86.54 and a 200 day moving average price of $95.70. United Parcel Service has a fifty-two week low of $82.00 and a fifty-two week high of $145.01. The stock has a market capitalization of $72.60 billion, a PE ratio of 12.75, a price-to-earnings-growth ratio of 1.55 and a beta of 1.10.

United Parcel Service (NYSE:UPS - Get Free Report) last posted its quarterly earnings data on Tuesday, July 29th. The transportation company reported $1.55 earnings per share for the quarter, missing the consensus estimate 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 company had revenue of $21.20 billion during the quarter, compared to the consensus estimate of $20.90 billion. During the same quarter last year, the firm earned $1.79 EPS. The business's revenue for the quarter was down 2.7% on a year-over-year basis. Analysts forecast that United Parcel Service will post 7.95 EPS for the current year.

United Parcel Service Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Stockholders of record on Monday, August 18th were issued a $1.64 dividend. The ex-dividend date of this dividend was Monday, August 18th. This represents a $6.56 annualized dividend and a dividend yield of 7.7%. United Parcel Service's payout ratio is 97.62%.

Insider Activity

In other news, Director William R. Johnson purchased 5,000 shares of the firm's stock in a transaction dated Thursday, July 31st. The stock was bought at an average price 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 approximately $878,840. This represents a 96.90% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Carol B. Tome purchased 11,682 shares of the firm's stock in a transaction dated Friday, August 1st. The stock was purchased at an average cost of $85.67 per share, with a total value of $1,000,796.94. Following the acquisition, the chief executive officer directly owned 24,718 shares in the company, valued at $2,117,591.06. This trade represents a 89.61% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders bought 17,182 shares of company stock valued at $1,477,382 in the last quarter. Company insiders own 0.13% of the company's stock.

Institutional Investors Weigh In On United Parcel Service

Institutional investors have recently added to or reduced their stakes in the stock. Founders Capital Management LLC lifted its position in United Parcel Service by 8.3% in the 2nd quarter. Founders Capital Management LLC now owns 111,405 shares of the transportation company's stock valued at $11,245,000 after acquiring an additional 8,579 shares in the last quarter. Gallacher Capital Management LLC bought a new stake in United Parcel Service in the 1st quarter valued at $620,000. Garde Capital Inc. bought a new stake in United Parcel Service in the 1st quarter valued at $37,000. Capital CS Group LLC lifted its position in United Parcel Service by 3.6% in the 2nd quarter. Capital CS Group LLC now owns 235,090 shares of the transportation company's stock valued at $23,730,000 after acquiring an additional 8,070 shares in the last quarter. Finally, CX Institutional lifted its position in United Parcel Service by 39.9% in the 2nd quarter. CX Institutional now owns 60,165 shares of the transportation company's stock valued at $6,073,000 after acquiring an additional 17,152 shares in the last quarter. 60.26% of the stock is owned by 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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