United Parcel Service (NYSE:UPS) Earns "Sell (D+)" Rating from Weiss Ratings

Key Points

• Weiss Ratings has restated its "sell (D+)" rating for United Parcel Service (NYSE:UPS), highlighting a negative outlook for the stock.
• Several analysts have lowered their price targets for UPS, with Bank of America and Morgan Stanley adjusting theirs to $81 and $75 respectively, indicating a generally cautious stance on the company's future performance.
• Despite the discouraging ratings, institutional investors have been active, with notable purchases from Norges Bank and Goldman Sachs Group, which signals ongoing interest in UPS shares.

United Parcel Service (NYSE:UPS - Get Free Report)'s stock had its "sell (d+)" rating restated by research analysts at Weiss Ratings in a research note issued to investors on Wednesday,Weiss Ratings reports.

Several other equities analysts have also weighed in on UPS. Bank of America dropped their price objective on shares of United Parcel Service from $83.00 to $81.00 and set an "underperform" rating on the stock in a report on Friday, September 26th. Morgan Stanley dropped their price objective on shares of United Parcel Service from $80.00 to $75.00 and set an "underweight" rating on the stock in a research note on Wednesday, July 30th. Wells Fargo & Company dropped their price objective on shares of United Parcel Service from $98.00 to $91.00 and set an "equal weight" rating on the stock in a research note on Wednesday, July 30th. Citigroup dropped their price objective on shares of United Parcel Service from $127.00 to $114.00 and set a "buy" rating on the stock in a research note on Thursday, July 31st. Finally, UBS Group dropped their price objective on shares of United Parcel Service from $118.00 to $110.00 and set a "buy" rating on the stock in a research note on Friday, October 3rd. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, fifteen have assigned a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $109.38.

United Parcel Service Stock Up 0.4%

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

United Parcel Service (NYSE:UPS - Get Free Report) last announced 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 net margin of 6.34% and a return on equity of 39.61%. The company had revenue of $21.20 billion for the quarter, compared to analyst estimates of $20.90 billion. During the same quarter in the prior year, the company posted $1.79 EPS. United Parcel Service's revenue for the quarter was down 2.7% on a year-over-year basis. Equities research analysts predict that United Parcel Service will post 7.95 earnings per share for the current fiscal year.

Insider Activity at United Parcel Service

In other news, Director William R. Johnson purchased 5,000 shares of the company's stock in a transaction that occurred on Thursday, July 31st. The shares were bought at an average cost of $86.50 per share, with a total value of $432,500.00. Following the completion of the transaction, the director directly owned 10,160 shares of the company's stock, valued at approximately $878,840. This trade represents a 96.90% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Christiana Smith Shi acquired 500 shares of the stock in a transaction on Friday, August 22nd. The stock was bought at an average cost of $88.17 per share, for a total transaction of $44,085.00. Following the transaction, the director owned 500 shares of the company's stock, valued at approximately $44,085. This trade represents a ∞ increase in their position. The disclosure for this purchase can be found here. Insiders have bought 17,182 shares of company stock valued at $1,477,382 over the last ninety days. Corporate insiders own 0.13% of the company's stock.

Institutional Trading of United Parcel Service

Hedge funds have recently added to or reduced their stakes in the stock. Norges Bank purchased a new position in shares of United Parcel Service in the second quarter worth about $851,842,000. Goldman Sachs Group Inc. increased its stake in shares of United Parcel Service by 124.0% in the first quarter. Goldman Sachs Group Inc. now owns 9,011,107 shares of the transportation company's stock worth $991,132,000 after purchasing an additional 4,988,044 shares in the last quarter. Pacer Advisors Inc. increased its stake in shares of United Parcel Service by 1,056.6% in the first quarter. Pacer Advisors Inc. now owns 4,336,175 shares of the transportation company's stock worth $476,936,000 after purchasing an additional 3,961,255 shares in the last quarter. Laurel Wealth Advisors LLC increased its stake in shares of United Parcel Service by 11,517.3% in the second quarter. Laurel Wealth Advisors LLC now owns 2,503,413 shares of the transportation company's stock worth $252,695,000 after purchasing an additional 2,481,864 shares in the last quarter. Finally, Nuveen LLC purchased a new position in shares of United Parcel Service in the first quarter worth about $201,358,000. Institutional investors own 60.26% of the company's stock.

About United Parcel Service

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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