United Parcel Service (NYSE:UPS) Shares Down 1.3% - Here's Why

Key Points

• United Parcel Service (UPS) shares fell 1.3% to a trading value of $86.93, with trading volume down 23% compared to average levels.
• Analyst ratings are mixed; Weiss Ratings issued a "sell" rating, while others like Barclays and Wells Fargo lowered their target prices, indicating cautious sentiment surrounding the stock.
• The company's quarterly earnings report revealed a net margin of 6.34% and an earnings-per-share (EPS) of $1.55, slightly missing estimates, along with a notable year-over-year revenue decline of 2.7%.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report) traded down 1.3% during trading on Wednesday . The stock traded as low as $86.93 and last traded at $86.93. 5,215,531 shares were traded during mid-day trading, a decline of 23% from the average session volume of 6,734,253 shares. The stock had previously closed at $88.06.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on UPS. Weiss Ratings reiterated a "sell (d+)" rating on shares of United Parcel Service in a report on Wednesday, October 8th. Wells Fargo & Company reduced their target price on United Parcel Service from $98.00 to $91.00 and set an "equal weight" rating on the stock in a report on Wednesday, July 30th. Barclays reduced their target price on United Parcel Service from $90.00 to $80.00 and set an "underweight" rating on the stock in a report on Thursday, July 31st. Galvan Research reduced their price objective on United Parcel Service from $126.00 to $124.00 and set a "buy" rating on the stock in a research note on Monday, June 30th. Finally, Wolfe Research reduced their price objective on United Parcel Service from $113.00 to $112.00 and set an "outperform" rating on the stock in a research note on Tuesday, July 1st. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, fifteen have issued a Hold rating and four have issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $109.31.

United Parcel Service Price Performance

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 firm has a market cap of $73.68 billion, a P/E ratio of 12.94, a PEG ratio of 1.61 and a beta of 1.10. The stock's 50-day simple moving average is $85.61 and its two-hundred day simple moving average is $93.30.

United Parcel Service (NYSE:UPS - Get Free Report) last issued 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). The firm had revenue of $21.20 billion for the quarter, compared to the consensus estimate of $20.90 billion. United Parcel Service had a net margin of 6.34% and a return on equity of 39.61%. The business's revenue for the quarter was down 2.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.79 earnings per share. Equities research analysts forecast that United Parcel Service, Inc. will post 7.95 earnings per share for the current fiscal year.

United Parcel Service Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 4th. Stockholders of record on Monday, August 18th were paid a dividend of $1.64 per share. The ex-dividend date was Monday, August 18th. This represents a $6.56 dividend on an annualized basis and a dividend yield of 7.5%. United Parcel Service's dividend payout ratio (DPR) is currently 97.62%.

Insider Buying and Selling at United Parcel Service

In related news, CEO Carol B. Tome bought 11,682 shares of the company's stock in a transaction on Friday, August 1st. The shares were acquired 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 ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director William R. Johnson bought 5,000 shares of the firm's stock in a transaction that occurred on Thursday, July 31st. The stock was purchased at an average price of $86.50 per share, with a total value of $432,500.00. Following the completion of the purchase, the director owned 10,160 shares in the company, valued at approximately $878,840. This trade represents a 96.90% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last 90 days, insiders have purchased 17,182 shares of company stock valued at $1,477,382. 0.13% of the stock is currently owned by corporate insiders.

Institutional Trading of United Parcel Service

A number of hedge funds and other institutional investors have recently modified their holdings of UPS. Graybill Wealth Management LTD. acquired a new stake in shares of United Parcel Service during the first quarter valued at about $26,000. Citizens National Bank Trust Department grew its holdings in shares of United Parcel Service by 525.0% in 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. Evelyn Partners Investment Management Europe Ltd grew its stake 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 worth $25,000 after acquiring an additional 131 shares in the last quarter. Mid American Wealth Advisory Group Inc. acquired a new position in shares of United Parcel Service during the second quarter worth about $26,000. Finally, Hemington Wealth Management grew its position in shares of United Parcel Service by 68.9% during the first quarter. Hemington Wealth Management now owns 282 shares of the transportation company's stock worth $31,000 after buying an additional 115 shares in the last quarter. 60.26% of the stock is owned by institutional investors and hedge funds.

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.