United Parcel Service (NYSE:UPS) Sets New 1-Year Low - Here's Why

Key Points

• United Parcel Service (UPS) reached a new 52-week low of $84.09, marking a notable drop from the previous closing price of $85.29, with over 1.9 million shares traded.
• The company's quarterly earnings report revealed earnings per share of $1.55, slightly missing the consensus estimate, with revenue of $21.20 billion down 2.7% from the same quarter last year.
• UPS announced a quarterly dividend of $1.64 per share, yielding 7.8%, with a high dividend payout ratio of 97.62% as it aims to reward shareholders amid financial challenges.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report) hit a new 52-week low on Thursday . The company traded as low as $84.09 and last traded at $84.19, with a volume of 1904052 shares changing hands. The stock had previously closed at $85.29.

Analyst Ratings Changes

A number of equities analysts have commented on UPS shares. Stifel Nicolaus decreased their price target on United Parcel Service from $124.00 to $120.00 and set a "buy" rating on the stock in a research note on Wednesday, July 30th. BNP Paribas upgraded United Parcel Service to a "hold" rating in a research report on Thursday, July 3rd. JPMorgan Chase & Co. dropped their price target on United Parcel Service from $110.00 to $107.00 and set a "neutral" rating on the stock in a research report on Tuesday, July 8th. Bank of America dropped their target price on United Parcel Service from $98.00 to $91.00 and set a "buy" rating on the stock in a report on Tuesday. Finally, Wolfe Research dropped their target price on United Parcel Service from $113.00 to $112.00 and set an "outperform" rating on the stock in a report on Tuesday, July 1st. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, fourteen have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, United Parcel Service presently has an average rating of "Hold" and a consensus target price of $112.59.

United Parcel Service Stock Down 1.3%

The company has a 50 day moving average price of $93.83 and a two-hundred day moving average price of $100.50. 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 stock has a market cap of $71.33 billion, a PE ratio of 12.52, a PEG ratio of 1.60 and a beta of 1.08.

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

United Parcel Service Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 4th. Investors of record on Monday, August 18th will be given a dividend of $1.64 per share. This represents a $6.56 dividend on an annualized basis and a yield of 7.8%. The ex-dividend date is Monday, August 18th. United Parcel Service's dividend payout ratio is 97.62%.

Insider Activity at United Parcel Service

In other news, Director Christiana Smith Shi acquired 500 shares of United Parcel Service stock in a transaction that occurred 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 transaction, the director owned 500 shares in the company, valued at $44,085. The trade was a ∞ increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, 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 purchased at an average price of $85.67 per share, with a total value of $1,000,796.94. Following the transaction, the chief executive officer owned 24,718 shares of the company's stock, valued at $2,117,591.06. The trade was a 89.61% increase in their position. The disclosure for this purchase can be found here. Over the last 90 days, insiders bought 17,182 shares of company stock worth $1,477,382. 0.13% of the stock is owned by insiders.

Hedge Funds Weigh In On United Parcel Service

A number of hedge funds have recently made changes to their positions in UPS. Pinney & Scofield Inc. bought a new position in United Parcel Service during the fourth quarter valued at approximately $27,000. Fourth Dimension Wealth LLC bought a new position in United Parcel Service during the fourth quarter valued at approximately $28,000. Graybill Wealth Management LTD. bought a new position in United Parcel Service during the first quarter valued at approximately $26,000. Citizens National Bank Trust Department boosted its stake in 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 buying an additional 210 shares during the last quarter. Finally, Evelyn Partners Investment Management Europe Ltd boosted its stake in 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 buying an additional 131 shares during the last quarter. 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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