United Parcel Service (NYSE:UPS) Stock Price Up 2.2% - Still a Buy?

Key Points

• United Parcel Service (UPS) stock rose by 2.2%, trading at $88.21, despite a significant 74% decline in trading volume compared to its average.
• Analysts have mixed ratings on UPS, with two sell ratings, seventeen holds, and eleven buy ratings, while the consensus price target is $112.81.
• UPS reported a quarterly earnings miss with EPS of $1.55, falling short of estimates, and a 2.7% year-over-year revenue decline.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report) traded up 2.2% during trading on Tuesday . The stock traded as high as $88.17 and last traded at $88.21. Approximately 1,667,954 shares were traded during mid-day trading, a decline of 74% from the average daily volume of 6,295,342 shares. The stock had previously closed at $86.31.

Analyst Ratings Changes

Several research firms have recently issued reports on UPS. Jefferies Financial Group dropped their price objective on shares of United Parcel Service from $150.00 to $130.00 in a research report on Wednesday, April 30th. Truist Financial decreased their price target on shares of United Parcel Service from $130.00 to $120.00 and set a "buy" rating for the company in a report on Wednesday, July 30th. BMO Capital Markets decreased their target price on United Parcel Service from $130.00 to $125.00 and set an "outperform" rating for the company in a research note on Wednesday, April 30th. BNP Paribas Exane upgraded United Parcel Service from an "underperform" rating to a "neutral" rating and set a $100.00 price target on the stock in a research report on Thursday, July 3rd. Finally, Bank of America restated a "neutral" rating and set a $98.00 price objective on shares of United Parcel Service in a research note on Tuesday, July 29th. Two analysts have rated the stock with a sell rating, seventeen have issued a hold rating, eleven have issued a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $112.81.

United Parcel Service Trading Up 1.0%

The company has a debt-to-equity ratio of 1.51, a quick ratio of 1.32 and a current ratio of 1.32. The firm has a market cap of $73.80 billion, a price-to-earnings ratio of 12.99, a PEG ratio of 1.58 and a beta of 1.12. The business has a fifty day simple moving average of $98.02 and a 200-day simple moving average of $103.91.

United Parcel Service (NYSE:UPS - Get Free Report) last released its quarterly earnings results on Tuesday, July 29th. The transportation company reported $1.55 EPS for the quarter, missing analysts' consensus estimates of $1.56 by ($0.01). The company had revenue of $21.20 billion during 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 company's quarterly revenue was down 2.7% on a year-over-year basis. During the same quarter last year, the firm posted $1.79 EPS. As a group, equities analysts forecast that United Parcel Service, Inc. will post 7.95 earnings per share for the current fiscal year.

United Parcel Service Dividend Announcement

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

Insider Activity

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

Institutional Investors Weigh In On United Parcel Service

Institutional investors and hedge funds have recently bought and sold shares of the stock. Gallacher Capital Management LLC bought a new position in United Parcel Service in the 1st quarter worth $620,000. Garde Capital Inc. bought a new stake in United Parcel Service during the 1st quarter valued at about $37,000. Golden State Wealth Management LLC increased its holdings in shares of United Parcel Service by 61.3% in the 1st quarter. Golden State Wealth Management LLC now owns 1,576 shares of the transportation company's stock worth $173,000 after purchasing an additional 599 shares in the last quarter. CWA Asset Management Group LLC raised its stake in United Parcel Service by 5.9% during the 1st quarter. CWA Asset Management Group LLC now owns 3,467 shares of the transportation company's stock valued at $381,000 after buying an additional 193 shares during the last quarter. Finally, Advisor Resource Council bought a new stake in shares of United Parcel Service during the 1st quarter valued at about $437,000. 60.26% of the stock is owned by hedge funds and other institutional investors.

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.

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.