United Parcel Service (NYSE:UPS) Stock Price Down 1% - Time to Sell?

Key Points

• UPS stock dropped 1% on Monday, trading at $87.92 after previously closing at $88.82, with a significant decline in daily trading volume.
• Analysts have shown mixed sentiments about UPS, with several downgrading target prices; the average target price now stands at $112.81.
• The company announced a quarterly dividend of $1.64 to be paid on September 4th, with a yield of 7.5% and a payout ratio of 97.62%.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report) shares dropped 1% on Monday . The stock traded as low as $87.68 and last traded at $87.92. Approximately 1,374,123 shares were traded during mid-day trading, a decline of 79% from the average daily volume of 6,451,673 shares. The stock had previously closed at $88.82.

Wall Street Analyst Weigh In

UPS has been the topic of several recent research reports. Daiwa America reduced their target price on shares of United Parcel Service from $120.00 to $103.00 in a report on Wednesday, April 30th. BNP Paribas Exane raised shares of United Parcel Service from an "underperform" rating to a "neutral" rating and set a $100.00 price objective for the company in a research report on Thursday, July 3rd. Bank of America reiterated a "neutral" rating and set a $98.00 price objective on shares of United Parcel Service in a research report on Tuesday, July 29th. Citigroup lowered their target price on United Parcel Service from $127.00 to $114.00 and set a "buy" rating on the stock in a report on Thursday, July 31st. Finally, Galvan Research decreased their price target on shares of United Parcel Service from $126.00 to $124.00 and set a "buy" rating on the stock in a research report on Monday, June 30th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, fifteen have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, United Parcel Service currently has an average rating of "Hold" and an average target price of $112.81.

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 stock has a market capitalization of $74.50 billion, a price-to-earnings ratio of 13.09, a PEG ratio of 1.63 and a beta of 1.12. The stock's 50 day simple moving average is $95.89 and its 200-day simple moving average is $101.85.

United Parcel Service (NYSE:UPS - Get Free Report) last released its quarterly earnings results 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). United Parcel Service had a net margin of 6.34% and a return on equity of 39.61%. The business 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 business posted $1.79 EPS. The firm's revenue for the quarter was down 2.7% compared to the same quarter last year. On average, analysts expect that United Parcel Service, Inc. will post 7.95 EPS for the current fiscal year.

United Parcel Service Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Investors of record on Monday, August 18th will be issued a $1.64 dividend. This represents a $6.56 annualized dividend and a yield of 7.5%. The ex-dividend date is Monday, August 18th. United Parcel Service's payout ratio is 97.62%.

Insider Buying and Selling

In related news, Director William R. Johnson purchased 5,000 shares of the stock in a transaction on Thursday, July 31st. The shares were bought at an average price of $86.50 per share, for a total transaction of $432,500.00. Following the completion of the acquisition, the director directly owned 10,160 shares in the company, valued at approximately $878,840. This trade represents a 96.90% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Carol B. Tome purchased 11,682 shares of the company's stock in a transaction dated Friday, August 1st. The stock was purchased at an average cost of $85.67 per share, for a total transaction of $1,000,796.94. Following the transaction, the chief executive officer owned 24,718 shares of the company's stock, valued at approximately $2,117,591.06. This trade represents a 89.61% increase in their ownership of the stock. The disclosure for this purchase can be found here. 0.13% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On United Parcel Service

Several hedge funds have recently made changes to their positions in the stock. Cornerstone Wealth Group LLC lifted its holdings in shares of United Parcel Service by 3.9% during the 2nd quarter. Cornerstone Wealth Group LLC now owns 2,557 shares of the transportation company's stock worth $258,000 after acquiring an additional 97 shares during the period. Colonial Trust Co SC lifted its stake in United Parcel Service by 1.4% during the fourth quarter. Colonial Trust Co SC now owns 7,227 shares of the transportation company's stock worth $911,000 after purchasing an additional 98 shares during the period. Juncture Wealth Strategies LLC lifted its stake in United Parcel Service by 2.5% during the first quarter. Juncture Wealth Strategies LLC now owns 4,124 shares of the transportation company's stock worth $454,000 after purchasing an additional 101 shares during the period. Bangor Savings Bank boosted its holdings in United Parcel Service by 1.9% during the second quarter. Bangor Savings Bank now owns 5,413 shares of the transportation company's stock valued at $546,000 after purchasing an additional 101 shares in the last quarter. Finally, First Dallas Securities Inc. grew its stake in shares of United Parcel Service by 0.9% in the 1st quarter. First Dallas Securities Inc. now owns 11,421 shares of the transportation company's stock valued at $1,256,000 after purchasing an additional 102 shares during the period. 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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