United Parcel Service (NYSE:UPS) Trading 3% Higher - Time to Buy?

Key Points

• United Parcel Service's share price increased by 3%, trading at $88.78 after a previous close of $86.15, with lower trading volume compared to average.
• Recent analyst reports show a mix of target price reductions, with estimates ranging from $75.00 to $124.00, and a consensus average target price of $112.81.
• UPS announced a quarterly dividend of $1.64 per share, yielding 7.4%, with a high dividend payout ratio of 97.62%.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report)'s share price traded up 3% during mid-day trading on Friday . The company traded as high as $88.83 and last traded at $88.78. 2,782,748 shares were traded during trading, a decline of 57% from the average session volume of 6,435,599 shares. The stock had previously closed at $86.15.

Wall Street Analysts Forecast Growth

UPS has been the topic of a number of recent research reports. Stifel Nicolaus reduced their target price on shares of United Parcel Service from $124.00 to $120.00 and set a "buy" rating on the stock in a research report on Wednesday, July 30th. Morgan Stanley reduced their target price on shares of United Parcel Service from $80.00 to $75.00 and set an "underweight" rating on the stock in a research report on Wednesday, July 30th. Daiwa America reduced their target price on shares of United Parcel Service from $120.00 to $103.00 in a research report on Wednesday, April 30th. Redburn Atlantic reduced their target price on shares of United Parcel Service from $137.00 to $117.00 and set a "buy" rating on the stock in a research report on Thursday, May 8th. Finally, Galvan Research dropped 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 note on Monday, June 30th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, fifteen have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $112.81.

United Parcel Service Stock Up 3.0%

The company has a current ratio of 1.32, a quick ratio of 1.32 and a debt-to-equity ratio of 1.51. The firm has a market cap of $75.19 billion, a P/E ratio of 13.20, a PEG ratio of 1.60 and a beta of 1.12. The company's 50 day simple moving average is $96.11 and its 200-day simple moving average is $102.16.

United Parcel Service (NYSE:UPS - Get Free Report) last posted its earnings results on Tuesday, July 29th. The transportation company reported $1.55 earnings per share (EPS) for the quarter, missing the consensus estimate 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 net margin of 6.34% and a return on equity of 39.61%. United Parcel Service's revenue was down 2.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $1.79 EPS. Research 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 business also recently announced a quarterly dividend, which will be paid on Thursday, September 4th. Shareholders of record on Monday, August 18th will be paid a dividend of $1.64 per share. The ex-dividend date is Monday, August 18th. This represents a $6.56 annualized dividend and a yield of 7.4%. United Parcel Service's dividend payout ratio is currently 97.62%.

Insider Activity

In other United Parcel Service news, CEO Carol B. Tome acquired 11,682 shares of the stock in a transaction dated Friday, August 1st. The shares were purchased at an average price of $85.67 per share, for a total transaction of $1,000,796.94. Following the purchase, the chief executive officer directly 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 acquisition was disclosed in a filing with the SEC, which is accessible through this link. Also, Director William R. Johnson acquired 5,000 shares of the stock in a transaction dated 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 purchase, the director directly owned 10,160 shares in the company, valued at approximately $878,840. This trade represents a 96.90% increase in their ownership of the stock. The disclosure for this purchase can be found here. 0.13% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On United Parcel Service

Institutional investors have recently made changes to their positions in the business. Gallacher Capital Management LLC purchased a new stake in United Parcel Service in the 1st quarter worth approximately $620,000. Garde Capital Inc. purchased a new stake in United Parcel Service in the 1st quarter worth approximately $37,000. Golden State Wealth Management LLC increased its holdings in 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 acquiring an additional 599 shares in the last quarter. CWA Asset Management Group LLC increased its holdings in United Parcel Service by 5.9% in the 1st quarter. CWA Asset Management Group LLC now owns 3,467 shares of the transportation company's stock worth $381,000 after acquiring an additional 193 shares in the last quarter. Finally, Advisor Resource Council purchased a new stake in United Parcel Service in the 1st quarter worth approximately $437,000. Institutional investors own 60.26% of the company's stock.

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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