United Parcel Service (NYSE:UPS) Earns Underperform Rating from Bank of America

Key Points

• Bank of America has restated its "underperform" rating on United Parcel Service (UPS) with a new price objective of $83.00, down from $91.00, indicating a potential downside of 1.08% from its previous close.
• Other analysts, including Citigroup and Truist Financial, have also reduced their price targets for UPS, reflecting a generally cautious outlook amongst multiple financial institutions.
• UPS reported its quarterly earnings last month, missing analysts' estimates by a small margin; despite this, the company achieved a revenue of $21.20 billion for the quarter, exceeding expectations.

United Parcel Service (NYSE:UPS - Get Free Report)'s stock had its "underperform" rating restated by Bank of America in a note issued to investors on Thursday,Benzinga reports. They currently have a $83.00 price objective on the transportation company's stock, down from their previous price objective of $91.00. Bank of America's price objective points to a potential downside of 1.08% from the stock's previous close.

Other research analysts have also recently issued research reports about the stock. Citigroup cut 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 report on Thursday, July 31st. Truist Financial cut their price objective on shares of United Parcel Service from $130.00 to $120.00 and set a "buy" rating on the stock in a research report on Wednesday, July 30th. Wolfe Research cut their price objective on shares of United Parcel Service from $113.00 to $112.00 and set an "outperform" rating on the stock in a research report on Tuesday, July 1st. Wells Fargo & Company cut their price target on shares of United Parcel Service from $98.00 to $91.00 and set an "equal weight" rating on the stock in a report on Wednesday, July 30th. Finally, JPMorgan Chase & Co. cut their price target on shares of United Parcel Service from $110.00 to $107.00 and set a "neutral" rating on the stock in a report on Tuesday, July 8th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, fourteen have assigned a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $112.34.

United Parcel Service Price Performance

United Parcel Service stock opened at $83.91 on Thursday. The company has a market cap of $71.12 billion, a price-to-earnings ratio of 12.49, a PEG ratio of 1.55 and a beta of 1.08. The firm's fifty day moving average is $92.01 and its 200 day moving average is $99.41. The company has a quick ratio of 1.32, a current ratio of 1.32 and a debt-to-equity ratio of 1.51. United Parcel Service has a 52-week low of $83.05 and a 52-week high of $145.01.

United Parcel Service (NYSE:UPS - Get Free Report) last released its quarterly 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). United Parcel Service had a net margin of 6.34% and a return on equity of 39.61%. The business had revenue of $21.20 billion for the quarter, compared to analysts' expectations of $20.90 billion. During the same period in the previous year, the company earned $1.79 EPS. United Parcel Service's revenue for the quarter was down 2.7% compared to the same quarter last year. Sell-side analysts forecast that United Parcel Service will post 7.95 EPS for the current fiscal year.

Insider Activity at United Parcel Service

In related news, Director Christiana Smith Shi acquired 500 shares of the firm's stock in a transaction that occurred on Friday, August 22nd. The stock was purchased at an average cost of $88.17 per share, with a total value of $44,085.00. Following the transaction, the director directly owned 500 shares of the company's stock, valued at $44,085. This trade represents a ∞ increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director William R. Johnson acquired 5,000 shares of the firm's stock in a transaction that occurred on Thursday, July 31st. The stock was 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 in the company, valued at $878,840. The trade was a 96.90% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders purchased 17,182 shares of company stock valued at $1,477,382 in the last three months. 0.13% of the stock is owned by insiders.

Hedge Funds Weigh In On United Parcel Service

Hedge funds and other institutional investors have recently bought and sold shares of the business. Pinney & Scofield Inc. acquired a new position in United Parcel Service in the 4th quarter worth approximately $27,000. Fourth Dimension Wealth LLC acquired a new position in United Parcel Service in the 4th quarter worth approximately $28,000. Graybill Wealth Management LTD. acquired a new position in United Parcel Service in the 1st quarter worth approximately $26,000. Citizens National Bank Trust Department increased its holdings in 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 worth $27,000 after buying an additional 210 shares during the period. Finally, Evelyn Partners Investment Management Europe Ltd increased its holdings in 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 buying an additional 131 shares during the period. Institutional investors and hedge funds own 60.26% of the company's stock.

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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