United Parcel Service (NYSE:UPS) Trading 1.4% Higher - Should You Buy?

Key Points

• The stock of United Parcel Service (UPS) increased by 1.4% in trading, with a last price of $86.79 after reaching a high of $87.33.
• Recent analyst ratings show mixed opinions, with price targets ranging from $88.00 to $112.00 and a consensus rating of "Hold".
• UPS announced a quarterly dividend of $1.64 per share, reflecting an annualized dividend yield of 7.6%.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report)'s stock price traded up 1.4% during trading on Friday . The company traded as high as $87.33 and last traded at $86.79. 7,085,556 shares changed hands during mid-day trading, an increase of 5% from the average session volume of 6,765,861 shares. The stock had previously closed at $85.57.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on UPS shares. Wolfe Research dropped their price target on shares of United Parcel Service from $113.00 to $112.00 and set an "outperform" rating for the company in a research report on Tuesday, July 1st. Evercore ISI reduced their price objective on shares of United Parcel Service from $103.00 to $97.00 and set an "in-line" rating for the company in a research note on Wednesday, July 30th. Susquehanna reduced their price target on shares of United Parcel Service from $110.00 to $100.00 and set a "neutral" rating for the company in a research note on Wednesday, July 30th. Deutsche Bank Aktiengesellschaft lowered their price target on shares of United Parcel Service from $100.00 to $88.00 and set a "hold" rating on the stock in a report on Thursday. Finally, UBS Group lowered their price target on United Parcel Service from $118.00 to $110.00 and set a "buy" rating on the stock in a report on Friday. One 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. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $110.16.

United Parcel Service Price Performance

The stock has a 50 day moving average price of $86.20 and a two-hundred day moving average price of $95.48. The firm has a market cap of $73.56 billion, a PE ratio of 12.92, a price-to-earnings-growth ratio of 1.58 and a beta of 1.10. 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 announced its quarterly earnings results 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 net margin of 6.34% and a return on equity of 39.61%. The company had revenue of $21.20 billion during the quarter, compared to analyst estimates of $20.90 billion. During the same period in the previous year, the firm posted $1.79 earnings per share. The company's revenue was down 2.7% compared to the same quarter last year. As a group, equities analysts expect 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 announced a quarterly dividend, which was paid on Thursday, September 4th. Stockholders of record on Monday, August 18th were given a dividend of $1.64 per share. This represents a $6.56 annualized dividend and a dividend yield of 7.6%. The ex-dividend date of this dividend was Monday, August 18th. United Parcel Service's dividend payout ratio (DPR) is 97.62%.

Insider Buying and Selling

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

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Norges Bank bought a new stake in shares of United Parcel Service in the 2nd quarter worth approximately $851,842,000. Goldman Sachs Group Inc. lifted its holdings in shares of United Parcel Service by 124.0% in the 1st quarter. Goldman Sachs Group Inc. now owns 9,011,107 shares of the transportation company's stock worth $991,132,000 after purchasing an additional 4,988,044 shares during the last quarter. Pacer Advisors Inc. lifted its holdings in shares of United Parcel Service by 1,056.6% in the 1st quarter. Pacer Advisors Inc. now owns 4,336,175 shares of the transportation company's stock worth $476,936,000 after purchasing an additional 3,961,255 shares during the last quarter. Laurel Wealth Advisors LLC lifted its holdings in shares of United Parcel Service by 11,517.3% in the 2nd quarter. Laurel Wealth Advisors LLC now owns 2,503,413 shares of the transportation company's stock worth $252,695,000 after purchasing an additional 2,481,864 shares during the last quarter. Finally, Nuveen LLC acquired a new stake in United Parcel Service in the 1st quarter valued at approximately $201,358,000. 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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