United Parcel Service (NYSE:UPS) Shares Down 1.5% - Here's What Happened

Key Points

• United Parcel Service (UPS) shares fell by 1.5% to $82.62, with trading volume increasing by 34% compared to the average daily volume.
• Analysts have revised their price targets for UPS, with Wells Fargo lowering theirs from $98.00 to $91.00, while JPMorgan cut theirs from $110.00 to $107.00.
• UPS recently announced a quarterly dividend of $1.64, resulting in a high annualized dividend yield of 7.9% despite a payout ratio of 97.62%.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report) shares were down 1.5% during mid-day trading on Thursday . The stock traded as low as $82.36 and last traded at $82.62. Approximately 8,989,848 shares traded hands during mid-day trading, an increase of 34% from the average daily volume of 6,725,400 shares. The stock had previously closed at $83.90.

Analysts Set New Price Targets

Several analysts have issued reports on UPS shares. Wells Fargo & Company lowered their target price on 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. Oppenheimer dropped their target price on United Parcel Service from $114.00 to $100.00 and set an "outperform" rating for the company in a report on Wednesday, July 30th. Truist Financial decreased their target price on United Parcel Service from $130.00 to $120.00 and set a "buy" rating for the company in a research report on Wednesday, July 30th. Stifel Nicolaus cut 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. Finally, 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 note on Tuesday, July 8th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, fifteen have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $111.44.

United Parcel Service Stock Performance

The business has a 50-day moving average price of $88.55 and a 200-day moving average price of $97.06. The firm has a market capitalization of $70.03 billion, a price-to-earnings ratio of 12.29, a P/E/G ratio of 1.56 and a beta of 1.08. The company has a quick ratio of 1.32, a current ratio of 1.32 and a debt-to-equity ratio of 1.51.

United Parcel Service (NYSE:UPS - Get Free Report) last released its earnings results on Tuesday, July 29th. The transportation company reported $1.55 earnings per share (EPS) 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 firm had revenue of $21.20 billion during the quarter, compared to analyst estimates of $20.90 billion. During the same period in the previous year, the company earned $1.79 earnings per share. United Parcel Service's revenue was down 2.7% on a year-over-year basis. As a group, sell-side analysts forecast that United Parcel Service, Inc. will post 7.95 earnings per share for the current year.

United Parcel Service Dividend Announcement

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 $1.64 dividend. The ex-dividend date of this dividend was Monday, August 18th. This represents a $6.56 annualized dividend and a dividend yield of 7.9%. United Parcel Service's dividend payout ratio (DPR) is presently 97.62%.

Insider Activity at United Parcel Service

In other United Parcel Service news, Director William R. Johnson bought 5,000 shares of the firm's stock in a transaction dated Thursday, July 31st. The stock was acquired at an average price 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 of the company's stock, valued at approximately $878,840. This represents a 96.90% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Christiana Smith Shi acquired 500 shares of United Parcel Service stock in a transaction that occurred on Friday, August 22nd. The stock was purchased at an average price of $88.17 per share, with a total value of $44,085.00. Following the transaction, the director owned 500 shares of the company's stock, valued at $44,085. This trade represents a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have acquired 17,182 shares of company stock valued at $1,477,382 over the last quarter. 0.13% of the stock is owned by insiders.

Institutional Trading of United Parcel Service

Several hedge funds and other institutional investors have recently bought and sold shares of UPS. Norges Bank acquired a new position in shares of United Parcel Service during the 2nd quarter valued at $851,842,000. Goldman Sachs Group Inc. grew its position in shares of United Parcel Service by 124.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 9,011,107 shares of the transportation company's stock valued at $991,132,000 after buying an additional 4,988,044 shares during the last quarter. Pacer Advisors Inc. grew its position in shares of United Parcel Service by 1,056.6% during the 1st quarter. Pacer Advisors Inc. now owns 4,336,175 shares of the transportation company's stock valued at $476,936,000 after buying an additional 3,961,255 shares during the last quarter. Laurel Wealth Advisors LLC grew its position in United Parcel Service by 11,517.3% in the 2nd quarter. Laurel Wealth Advisors LLC now owns 2,503,413 shares of the transportation company's stock worth $252,695,000 after purchasing an additional 2,481,864 shares during the last quarter. Finally, Nuveen LLC acquired a new stake in shares of United Parcel Service in the 1st quarter worth approximately $201,358,000. 60.26% of the stock is owned by hedge funds and other institutional investors.

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.

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