United Parcel Service (NYSE:UPS) Shares Down 1.8% - Should You Sell?

Key Points

• UPS stock declined by 1.8% on a recent trading day, reaching a low of $83.91, and experiencing a volume drop of 43% compared to its average daily trading.
• Several investment firms have adjusted their price targets for UPS, with Redburn Atlantic reducing its target from $137 to $117, and Oppenheimer from $114 to $100, indicating mixed ratings from analysts.
• UPS announced a quarterly dividend of $1.64 per share, reflecting a high annualized yield of 7.8%, though its payout ratio stands at 97.62%, suggesting potential concerns about sustainability.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report)'s stock price dropped 1.8% during trading on Thursday . The stock traded as low as $83.91 and last traded at $83.76. Approximately 3,703,073 shares traded hands during mid-day trading, a decline of 43% from the average daily volume of 6,491,224 shares. The stock had previously closed at $85.29.

Wall Street Analyst Weigh In

UPS has been the topic of several recent research reports. Redburn Atlantic lowered their price target on shares of United Parcel Service from $137.00 to $117.00 and set a "buy" rating on the stock in a report on Thursday, May 8th. Oppenheimer lowered their price target on shares of United Parcel Service from $114.00 to $100.00 and set an "outperform" rating on the stock in a report on Wednesday, July 30th. Wall Street Zen lowered shares of United Parcel Service from a "hold" rating to a "sell" rating in a research note on Saturday, August 30th. Truist Financial dropped their price objective on United Parcel Service from $130.00 to $120.00 and set a "buy" rating on the stock in a report on Wednesday, July 30th. Finally, BNP Paribas raised United Parcel Service to a "hold" rating in a report on Thursday, July 3rd. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, fourteen have issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $112.59.

United Parcel Service Price Performance

The stock's fifty day moving average price is $93.83 and its 200-day moving average price is $100.50. The firm has a market cap of $71.59 billion, a price-to-earnings ratio of 12.57, a P/E/G ratio of 1.60 and a beta of 1.08. The company has a current ratio of 1.32, a quick ratio of 1.32 and a debt-to-equity ratio of 1.51.

United Parcel Service (NYSE:UPS - Get Free Report) last posted its quarterly earnings data on Tuesday, July 29th. The transportation company reported $1.55 earnings per share for the quarter, missing analysts' consensus estimates of $1.56 by ($0.01). The company had revenue of $21.20 billion for the quarter, compared to analysts' expectations of $20.90 billion. United Parcel Service had a return on equity of 39.61% and a net margin of 6.34%.The business's revenue for the quarter was down 2.7% on a year-over-year basis. During the same period in the previous year, the business posted $1.79 EPS. As a group, 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 business 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. The ex-dividend date of this dividend is Monday, August 18th. This represents a $6.56 dividend on an annualized basis and a dividend yield of 7.8%. United Parcel Service's dividend payout ratio (DPR) is presently 97.62%.

Insider Buying and Selling

In related news, Director William R. Johnson acquired 5,000 shares of the 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 transaction, the director owned 10,160 shares of the company's stock, valued at approximately $878,840. This trade represents a 96.90% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Christiana Smith Shi purchased 500 shares of the firm's stock in a transaction on Friday, August 22nd. The stock was acquired at an average cost of $88.17 per share, with a total value of $44,085.00. Following the transaction, the director directly owned 500 shares in the company, valued at $44,085. This trade represents a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last quarter, insiders purchased 17,182 shares of company stock valued at $1,477,382. Company insiders own 0.13% of the company's stock.

Hedge Funds Weigh In On United Parcel Service

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Brighton Jones LLC lifted its position in shares of United Parcel Service by 63.8% during the 4th quarter. Brighton Jones LLC now owns 12,126 shares of the transportation company's stock worth $1,529,000 after purchasing an additional 4,723 shares during the last quarter. Captrust Financial Advisors raised its stake in United Parcel Service by 4.6% during the 4th quarter. Captrust Financial Advisors now owns 50,205 shares of the transportation company's stock worth $6,331,000 after acquiring an additional 2,217 shares in the last quarter. Bridgefront Capital LLC acquired a new stake in United Parcel Service during the 4th quarter worth $276,000. Cetera Investment Advisers raised its stake in United Parcel Service by 6.1% during the 4th quarter. Cetera Investment Advisers now owns 278,681 shares of the transportation company's stock worth $35,142,000 after acquiring an additional 16,076 shares in the last quarter. Finally, Capital Advantage Inc. acquired a new stake in United Parcel Service during the 4th quarter worth $313,000. 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.

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