United Parcel Service (NYSE:UPS) Rating Lowered to Sell at Wall Street Zen

Key Points

• United Parcel Service (UPS) has been downgraded from a "hold" to a "sell" rating by Wall Street Zen, reflecting a shift in analyst sentiment regarding the company's stock.
• Multiple analysts have revised their price targets for UPS, with Morgan Stanley lowering their target from $80.00 to $75.00, indicating concerns over the company's financial performance and future growth.
• Despite recent stock downgrades, UPS has seen insider buying activity, with a director purchasing 5,000 shares at an average price of $86.50, suggesting potential confidence from within the company's management.

Wall Street Zen lowered shares of United Parcel Service (NYSE:UPS - Free Report) from a hold rating to a sell rating in a report issued on Saturday.

Other equities research analysts have also issued research reports about the company. Oppenheimer dropped their target price on United Parcel Service from $114.00 to $100.00 and set an "outperform" rating on the stock in a research report on Wednesday, July 30th. Morgan Stanley decreased their price objective on shares of United Parcel Service from $80.00 to $75.00 and set an "underweight" rating for the company in a research note on Wednesday, July 30th. Barclays cut their price objective on shares of United Parcel Service from $90.00 to $80.00 and set an "underweight" rating on the stock in a research note on Thursday, July 31st. Galvan Research decreased 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 research report on Monday, June 30th. Finally, UBS Group lowered their price objective on United Parcel Service from $124.00 to $118.00 and set a "buy" rating on the stock in a research report on Wednesday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, fifteen have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $112.81.

United Parcel Service Stock Performance

Shares of NYSE:UPS traded up $0.27 on Friday, hitting $87.54. 6,834,049 shares of the company were exchanged, compared to its average volume of 8,279,527. The firm has a market capitalization of $74.20 billion, a P/E ratio of 13.03, a price-to-earnings-growth ratio of 1.60 and a beta of 1.12. The company has a current ratio of 1.32, a quick ratio of 1.32 and a debt-to-equity ratio of 1.51. United Parcel Service has a 1-year low of $84.28 and a 1-year high of $145.01. The stock's 50 day moving average price is $94.68 and its 200 day moving average price is $101.11.

United Parcel Service (NYSE:UPS - Get Free Report) last issued 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). United Parcel Service had a return on equity of 39.61% and a net margin of 6.34%.The firm had revenue of $21.20 billion during the quarter, compared to analysts' expectations of $20.90 billion. During the same quarter last year, the business earned $1.79 EPS. The business's revenue was down 2.7% on a year-over-year basis. Sell-side analysts predict that United Parcel Service will post 7.95 EPS for the current year.

United Parcel Service Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders of record on Monday, August 18th will be given a $1.64 dividend. This represents a $6.56 annualized dividend and a dividend yield of 7.5%. The ex-dividend date is Monday, August 18th. United Parcel Service's dividend payout ratio (DPR) is 97.62%.

Insider Buying and Selling

In other United Parcel Service news, Director Christiana Smith Shi bought 500 shares of the firm's stock in a transaction on Friday, August 22nd. The shares were acquired at an average cost of $88.17 per share, with a total value of $44,085.00. Following the purchase, the director directly owned 500 shares of the company's stock, valued at $44,085. This trade represents a ∞ increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CEO Carol B. Tome purchased 11,682 shares of the company's stock in a transaction dated Friday, August 1st. The stock was bought at an average price of $85.67 per share, with a total value of $1,000,796.94. Following the completion of the transaction, the chief executive officer directly owned 24,718 shares of the company's stock, valued at approximately $2,117,591.06. This represents a 89.61% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last ninety days, insiders bought 17,182 shares of company stock worth $1,477,382. 0.13% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On United Parcel Service

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Evelyn Partners Investment Management Europe Ltd grew its holdings in shares of United Parcel Service by 110.1% in the second quarter. Evelyn Partners Investment Management Europe Ltd now owns 250 shares of the transportation company's stock valued at $25,000 after purchasing an additional 131 shares during the period. Graybill Wealth Management LTD. purchased a new stake in shares of United Parcel Service in the 1st quarter valued at approximately $26,000. Mid American Wealth Advisory Group Inc. purchased a new stake in shares of United Parcel Service in the 2nd quarter valued at approximately $26,000. Pinney & Scofield Inc. acquired a new stake in shares of United Parcel Service during the 4th quarter worth approximately $27,000. Finally, Citizens National Bank Trust Department raised its position in shares of United Parcel Service by 525.0% during the 1st quarter. Citizens National Bank Trust Department now owns 250 shares of the transportation company's stock valued at $27,000 after buying an additional 210 shares during the period. Institutional investors and hedge funds 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.