United Parcel Service (NYSE:UPS) Sets New 12-Month Low on Analyst Downgrade

Key Points

• United Parcel Service (UPS) shares hit a new 52-week low at $82.00 after Citigroup downgraded its price target from $114.00 to $112.00, while still maintaining a buy rating.
• CEO Carol B. Tome recently acquired 11,682 shares of UPS stock, increasing her ownership by nearly 90%, while institutional investors have also been making notable adjustments to their stakes in the company.
• UPS announced a quarterly dividend of $1.64, representing a 7.9% yield, alongside a current dividend payout ratio of approximately 97.62%.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Tuesday after Citigroup lowered their price target on the stock from $114.00 to $112.00. Citigroup currently has a buy rating on the stock. United Parcel Service traded as low as $82.00 and last traded at $82.79, with a volume of 1249238 shares trading hands. The stock had previously closed at $83.18.

A number of other research analysts have also recently commented on the company. BNP Paribas raised United Parcel Service to a "hold" rating in a research report on Thursday, July 3rd. JPMorgan Chase & Co. reduced their price objective on United Parcel Service from $96.00 to $85.00 and set a "neutral" rating on the stock in a research report on Wednesday, October 8th. Bank of America reduced their price target on United Parcel Service from $83.00 to $81.00 and set an "underperform" rating on the stock in a research report on Friday, September 26th. Weiss Ratings restated a "sell (d+)" rating on shares of United Parcel Service in a research report on Wednesday, October 8th. Finally, BNP Paribas Exane upgraded United Parcel Service from an "underperform" rating to a "neutral" rating and set a $100.00 price target on the stock in a research report on Thursday, July 3rd. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, fifteen have given a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $109.31.

Insider Activity at United Parcel Service

In related news, CEO Carol B. Tome acquired 11,682 shares of United Parcel Service stock in a transaction that occurred on 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 transaction, the chief executive officer directly owned 24,718 shares in the company, valued at approximately $2,117,591.06. This represents a 89.61% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director William R. Johnson acquired 5,000 shares of United Parcel Service 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 transaction, the director owned 10,160 shares in the company, valued at $878,840. This represents a 96.90% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders purchased a total of 17,182 shares of company stock valued at $1,477,382 in the last 90 days. Corporate insiders own 0.13% of the company's stock.

Institutional Investors Weigh In On United Parcel Service

Hedge funds have recently made changes to their positions in the company. Evelyn Partners Investment Management Europe Ltd increased 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 worth $25,000 after acquiring an additional 131 shares during the last quarter. Graybill Wealth Management LTD. bought a new stake in United Parcel Service during the 1st quarter valued at $26,000. Mid American Wealth Advisory Group Inc. purchased a new stake in shares of United Parcel Service during the 2nd quarter valued at $26,000. Citizens National Bank Trust Department lifted its holdings 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 purchasing an additional 210 shares during the last quarter. Finally, Hemington Wealth Management increased its holdings in shares of United Parcel Service by 68.9% in the first quarter. Hemington Wealth Management now owns 282 shares of the transportation company's stock valued at $31,000 after purchasing an additional 115 shares during the period. 60.26% of the stock is currently owned by hedge funds and other institutional investors.

United Parcel Service Stock Down 0.2%

The business has a fifty day moving average price of $85.70 and a two-hundred day moving average price of $94.04. The firm has a market capitalization of $70.39 billion, a price-to-earnings ratio of 12.36, a price-to-earnings-growth ratio of 1.53 and a beta of 1.10. The company has a debt-to-equity ratio of 1.51, a current ratio of 1.32 and a quick ratio of 1.32.

United Parcel Service (NYSE:UPS - Get Free Report) last announced 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 net margin of 6.34% and a return on equity of 39.61%. 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. United Parcel Service's revenue for the quarter was down 2.7% on a year-over-year basis. On average, equities analysts expect that United Parcel Service, Inc. will post 7.95 earnings per share for the current year.

United Parcel Service Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Monday, August 18th were issued a $1.64 dividend. The ex-dividend date was Monday, August 18th. This represents a $6.56 dividend on an annualized basis and a yield of 7.9%. United Parcel Service's dividend payout ratio is currently 97.62%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.