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United Parcel Service (NYSE:UPS) Trading 1.3% Higher - What's Next?

United Parcel Service logo with Transportation background

Key Points

  • UPS shares rose by 1.3% to $88.07 during Tuesday trading, despite a 9% decline in session volume compared to average trading.
  • Analysts are divided on UPS, with one upgrade to "neutral" and multiple adjustments to target prices, resulting in a consensus rating of "Hold" and a price target of $109.31.
  • The company reported quarterly earnings of $1.55 EPS, slightly below estimates, while also announcing a $1.64 dividend with an annualized yield of 7.4% and a high dividend payout ratio of 97.62%.
  • Interested in United Parcel Service? Here are five stocks we like better.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report) shares traded up 1.3% on Tuesday . The company traded as high as $88.70 and last traded at $88.07. 6,157,647 shares changed hands during mid-day trading, a decline of 9% from the average session volume of 6,738,720 shares. The stock had previously closed at $86.91.

Analyst Ratings Changes

A number of brokerages recently commented on UPS. BNP Paribas Exane upgraded shares of United Parcel Service from an "underperform" rating to a "neutral" rating and set a $100.00 price objective on the stock in a report on Thursday, July 3rd. Stifel Nicolaus reduced their target price on shares of United Parcel Service from $124.00 to $120.00 and set a "buy" rating for the company in a report on Wednesday, July 30th. Wall Street Zen cut shares of United Parcel Service from a "hold" rating to a "sell" rating in a report on Saturday, September 20th. Oppenheimer cut their price objective on shares of United Parcel Service from $114.00 to $100.00 and set an "outperform" rating for the company in a research report on Wednesday, July 30th. Finally, Vertical Research reaffirmed a "hold" rating and issued a $103.00 target price on shares of United Parcel Service in a research report on Wednesday, July 30th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, fifteen have issued a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $109.31.

View Our Latest Research Report on UPS

United Parcel Service Trading Up 1.3%

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 company has a market capitalization of $74.64 billion, a price-to-earnings ratio of 13.11, a P/E/G ratio of 1.60 and a beta of 1.10. The business's 50-day moving average price is $85.59 and its two-hundred day moving average price is $93.34.

United Parcel Service (NYSE:UPS - Get Free Report) last posted its quarterly earnings data 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 for the quarter, compared to the consensus estimate of $20.90 billion. United Parcel Service had a return on equity of 39.61% and a net margin of 6.34%.United Parcel Service's revenue was down 2.7% on a year-over-year basis. During the same quarter last year, the business earned $1.79 EPS. Research analysts predict that United Parcel Service, Inc. will post 7.95 earnings per share for the current year.

United Parcel Service Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, September 4th. Shareholders of record on Monday, August 18th were issued a $1.64 dividend. This represents a $6.56 annualized dividend and a yield of 7.4%. The ex-dividend date of this dividend was Monday, August 18th. United Parcel Service's dividend payout ratio (DPR) is currently 97.62%.

Insider Activity

In other news, Director Christiana Smith Shi purchased 500 shares of the business's stock in a transaction dated Friday, August 22nd. The stock was bought at an average price of $88.17 per share, with a total value of $44,085.00. Following the acquisition, the director owned 500 shares in the company, valued at approximately $44,085. The trade was a ∞ increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director William R. Johnson acquired 5,000 shares of the firm's stock in a transaction that occurred on Thursday, July 31st. The stock was purchased at an average cost of $86.50 per share, for a total transaction of $432,500.00. Following the completion of the purchase, the director directly owned 10,160 shares of the company's stock, valued at $878,840. The trade was a 96.90% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last ninety days, insiders bought 17,182 shares of company stock worth $1,477,382. 0.13% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Cornerstone Wealth Group LLC lifted its stake in United Parcel Service by 3.9% in the 2nd quarter. Cornerstone Wealth Group LLC now owns 2,557 shares of the transportation company's stock valued at $258,000 after purchasing an additional 97 shares during the last quarter. Bangor Savings Bank increased its holdings in shares of United Parcel Service by 1.9% during the second quarter. Bangor Savings Bank now owns 5,413 shares of the transportation company's stock worth $546,000 after buying an additional 101 shares in the last quarter. First Dallas Securities Inc. lifted 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 acquiring an additional 102 shares during the last quarter. TCV Trust & Wealth Management Inc. boosted its holdings in shares of United Parcel Service by 1.4% during the 1st quarter. TCV Trust & Wealth Management Inc. now owns 7,544 shares of the transportation company's stock valued at $830,000 after acquiring an additional 103 shares in the last quarter. Finally, Fortis Capital Advisors LLC grew its position in United Parcel Service by 3.4% during the 1st quarter. Fortis Capital Advisors LLC now owns 3,185 shares of the transportation company's stock worth $350,000 after acquiring an additional 104 shares during the last quarter. Institutional investors own 60.26% of the company's stock.

United Parcel Service Company Profile

(Get Free Report)

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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