United Parcel Service (NYSE:UPS) Shares Up 1.9% - Here's Why

Key Points

• United Parcel Service (UPS) shares rose by 1.9% during trading, closing at $85.66, with an increased trading volume of over 7 million shares.
• Research firms have mixed views on UPS, with ratings ranging from "Strong Buy" to "Sell," and a consensus price target of $109.31.
• UPS recently declared a quarterly dividend of $1.64, indicating a high annualized yield of 7.7% despite a payout ratio of nearly 98%.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report)'s share price shot up 1.9% during trading on Thursday . The company traded as high as $85.73 and last traded at $85.66. 7,032,023 shares traded hands during trading, an increase of 4% from the average session volume of 6,737,581 shares. The stock had previously closed at $84.09.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on UPS. Weiss Ratings reiterated a "sell (d+)" rating on shares of United Parcel Service in a report on Wednesday, October 8th. BNP Paribas upgraded United Parcel Service to a "hold" rating in a report on Thursday, July 3rd. Evercore ISI reduced their price target on United Parcel Service from $103.00 to $97.00 and set an "in-line" rating for the company in a report on Wednesday, July 30th. Wells Fargo & Company reduced their price target on United Parcel Service from $98.00 to $91.00 and set an "equal weight" rating for the company in a report on Wednesday, July 30th. Finally, BNP Paribas Exane upgraded United Parcel Service from an "underperform" rating to a "neutral" rating and set a $100.00 price target for the company in a report on Thursday, July 3rd. One research 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 issued a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $109.31.

United Parcel Service Trading Up 1.9%

The company has a market cap of $72.60 billion, a P/E ratio of 12.75, a PEG ratio of 1.56 and a beta of 1.10. The business has a fifty day moving average price of $85.60 and a 200-day moving average price of $93.90. 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 issued its quarterly earnings data on Tuesday, July 29th. The transportation company reported $1.55 earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 firm had revenue of $21.20 billion for the quarter, compared to the consensus estimate of $20.90 billion. During the same quarter in the prior year, the firm earned $1.79 EPS. The company's revenue was down 2.7% on a year-over-year basis. On average, analysts forecast 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 declared a quarterly dividend, which was paid on Thursday, September 4th. Stockholders of record on Monday, August 18th were given a $1.64 dividend. This represents a $6.56 dividend on an annualized basis and a dividend yield of 7.7%. The ex-dividend date was Monday, August 18th. United Parcel Service's payout ratio is presently 97.62%.

Insider Activity

In other United Parcel Service news, Director Christiana Smith Shi purchased 500 shares of the company's stock in a transaction dated Friday, August 22nd. The stock was bought at an average cost of $88.17 per share, for a total transaction of $44,085.00. Following the completion of the transaction, the director owned 500 shares in the company, valued at approximately $44,085. This represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available through this link. Also, CEO Carol B. Tome purchased 11,682 shares of the company's stock in a transaction dated Friday, August 1st. The stock was acquired at an average price of $85.67 per share, with a total value of $1,000,796.94. Following the completion of the transaction, the chief executive officer owned 24,718 shares of the company's stock, valued at $2,117,591.06. This represents a 89.61% increase in their position. The disclosure for this purchase can be found here. Over the last ninety days, insiders acquired 17,182 shares of company stock worth $1,477,382. Corporate insiders own 0.13% of the company's stock.

Institutional Investors Weigh In On United Parcel Service

Hedge funds and other institutional investors have recently made changes to their positions in the business. Graybill Wealth Management LTD. acquired a new stake in shares of United Parcel Service in the first quarter valued at approximately $26,000. Citizens National Bank Trust Department raised its position 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 buying an additional 210 shares in the last quarter. Evelyn Partners Investment Management Europe Ltd raised its position 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 valued at $25,000 after purchasing an additional 131 shares in the last quarter. Mid American Wealth Advisory Group Inc. acquired a new position in United Parcel Service during the second quarter valued at approximately $26,000. Finally, Hemington Wealth Management raised its position in United Parcel Service by 68.9% during 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 in the last quarter. 60.26% of the stock is currently 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.

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