United Parcel Service (NYSE:UPS) Stock Price Down 1.2% - Here's What Happened

Key Points

• United Parcel Service (UPS) shares fell by 1.2% during mid-day trading, closing at $84.15 after trading lows of $83.73 and a volume increase of 29% compared to the average daily volume.
• Several analysts have revised their target prices for UPS, with ratings ranging from "buy" to "sell," and a consensus price target of $112.34 indicating a general caution in the market.
• UPS reported a Q2 EPS of $1.55, slightly missing estimates, with total revenue of $21.20 billion reflecting a 2.7% decrease from the previous year, while the company declared a dividend of $1.64 per share.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report) shares dropped 1.2% on Wednesday . The company traded as low as $83.73 and last traded at $84.15. Approximately 8,526,076 shares were traded during mid-day trading, an increase of 29% from the average daily volume of 6,612,393 shares. The stock had previously closed at $85.20.

Wall Street Analysts Forecast Growth

UPS has been the topic of a number of analyst reports. BNP Paribas upgraded shares of United Parcel Service to a "hold" rating in a report on Thursday, July 3rd. Evercore ISI reduced their price objective on shares of United Parcel Service from $103.00 to $97.00 and set an "in-line" rating on the stock in a report on Wednesday, July 30th. BNP Paribas Exane upgraded shares of United Parcel Service from an "underperform" rating to a "neutral" rating and set a $100.00 price objective on the stock in a report on Thursday, July 3rd. Barclays reduced 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 report on Thursday, July 31st. Finally, Wolfe Research reduced 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 report on Tuesday, July 1st. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, fifteen have issued a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $111.44.

United Parcel Service Price Performance

The company's 50 day moving average is $89.48 and its 200 day moving average is $97.66. The company has a current ratio of 1.32, a quick ratio of 1.32 and a debt-to-equity ratio of 1.51. The stock has a market capitalization of $71.31 billion, a price-to-earnings ratio of 12.52, a price-to-earnings-growth ratio of 1.55 and a beta of 1.08.

United Parcel Service (NYSE:UPS - Get Free Report) last announced its quarterly earnings results on Tuesday, July 29th. The transportation company reported $1.55 EPS 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 company had revenue of $21.20 billion for the quarter, compared to analyst estimates of $20.90 billion. During the same quarter in the prior year, the business earned $1.79 earnings per share. United Parcel Service's revenue was down 2.7% compared to the same quarter last year. Research analysts anticipate that United Parcel Service, Inc. will post 7.95 EPS for the current fiscal year.

United Parcel Service Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 4th. Shareholders of record on Monday, August 18th were paid 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 7.8%. United Parcel Service's payout ratio is currently 97.62%.

Insider Buying and Selling at United Parcel Service

In other United Parcel Service news, Director William R. Johnson acquired 5,000 shares of the company's stock in a transaction on Thursday, July 31st. The shares were bought at an average cost of $86.50 per share, for a total transaction of $432,500.00. Following the completion of the purchase, the director owned 10,160 shares in the company, valued at $878,840. This trade represents a 96.90% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Carol B. Tome acquired 11,682 shares of the company's stock in a transaction on Friday, August 1st. The stock was acquired at an average price of $85.67 per share, for a total transaction of $1,000,796.94. Following the completion of the purchase, the chief executive officer 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 disclosure for this purchase can be found here. Over the last three months, insiders have acquired 17,182 shares of company stock worth $1,477,382. 0.13% of the stock is owned by company insiders.

Institutional Trading of United Parcel Service

A number of institutional investors have recently added to or reduced their stakes in the stock. Valeo Financial Advisors LLC boosted its holdings in United Parcel Service by 14.7% during the second quarter. Valeo Financial Advisors LLC now owns 27,769 shares of the transportation company's stock worth $2,803,000 after buying an additional 3,554 shares in the last quarter. Osaic Holdings Inc. raised its position in United Parcel Service by 12.1% during the second quarter. Osaic Holdings Inc. now owns 236,083 shares of the transportation company's stock worth $23,922,000 after acquiring an additional 25,451 shares during the last quarter. Centaurus Financial Inc. raised its position in United Parcel Service by 33.2% during the second quarter. Centaurus Financial Inc. now owns 8,771 shares of the transportation company's stock worth $885,000 after acquiring an additional 2,185 shares during the last quarter. Impala Asset Management LLC acquired a new position in United Parcel Service during the second quarter worth about $3,331,000. Finally, Thrivent Financial for Lutherans raised its position in United Parcel Service by 10.0% during the second quarter. Thrivent Financial for Lutherans now owns 722,383 shares of the transportation company's stock worth $72,917,000 after acquiring an additional 65,583 shares during the last quarter. Hedge funds and other 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.