BMO Capital Markets Reiterates Market Perform Rating for United Parcel Service (NYSE:UPS)

Key Points

• BMO Capital Markets has restated its "market perform" rating on United Parcel Service (UPS) with a price target of $96.00, reflecting a decrease from the previous target of $125.00.
• UPS reported earnings per share of $1.55 for the last quarter, which was slightly below the consensus estimate, and the company saw a revenue decline of 2.7% compared to the previous year.
• Institutional investors currently hold 60.26% of UPS's stock, with significant purchases made by firms such as Norges Bank and Goldman Sachs Group Inc. recently boosting their shareholdings.

United Parcel Service (NYSE:UPS - Get Free Report)'s stock had its "market perform" rating reaffirmed by equities researchers at BMO Capital Markets in a report issued on Friday, Marketbeat.com reports. They presently have a $96.00 target price on the transportation company's stock, down from their previous target price of $125.00. BMO Capital Markets' target price suggests a potential upside of 14.10% from the company's previous close.

Other research analysts have also recently issued research reports about the stock. Evercore ISI dropped their price target on shares of United Parcel Service from $103.00 to $97.00 and set an "in-line" rating on the stock in a research note on Wednesday, July 30th. Citigroup lowered their target price 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. BNP Paribas Exane upgraded shares of United Parcel Service from an "underperform" rating to a "neutral" rating and set a $100.00 target price on the stock in a research note on Thursday, July 3rd. 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 on the stock in a research note on Wednesday, July 30th. Finally, JPMorgan Chase & Co. lowered their target price on shares of United Parcel Service from $110.00 to $107.00 and set a "neutral" rating on the stock in a research note on Tuesday, July 8th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, fifteen have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat, United Parcel Service presently has an average rating of "Hold" and a consensus price target of $111.44.

United Parcel Service Stock Performance

Shares of United Parcel Service stock traded down $0.91 on Friday, hitting $84.14. 18,090,067 shares of the company's stock were exchanged, compared to its average volume of 7,575,006. The company has a 50-day simple moving average of $89.48 and a 200-day simple moving average of $97.66. The stock has a market capitalization of $71.31 billion, a PE ratio of 12.52, a PEG ratio of 1.55 and a beta of 1.08. United Parcel Service has a 1 year low of $82.00 and a 1 year high of $145.01. 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 issued its quarterly earnings results 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). The business had revenue of $21.20 billion for the quarter, compared to analysts' expectations of $20.90 billion. United Parcel Service had a return on equity of 39.61% and a net margin of 6.34%.The company's revenue was down 2.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.79 EPS. As a group, equities analysts anticipate that United Parcel Service will post 7.95 EPS for the current year.

Insider Buying and Selling

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

Hedge Funds Weigh In On United Parcel Service

Hedge funds have recently added to or reduced their stakes in the stock. Pinney & Scofield Inc. bought a new position in shares of United Parcel Service during the fourth quarter valued at approximately $27,000. Fourth Dimension Wealth LLC bought a new position in shares of United Parcel Service during the fourth quarter valued at approximately $28,000. Graybill Wealth Management LTD. bought a new position in shares of United Parcel Service during the first quarter valued at approximately $26,000. Citizens National Bank Trust Department boosted its stake in shares of United Parcel Service by 525.0% during the first quarter. Citizens National Bank Trust Department now owns 250 shares of the transportation company's stock valued at $27,000 after purchasing an additional 210 shares in the last quarter. Finally, Evelyn Partners Investment Management Europe Ltd boosted its stake in shares of United Parcel Service by 110.1% during 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 in the last quarter. 60.26% of the stock is currently owned by institutional investors.

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.