United Parcel Service (NYSE:UPS) Trading Down 1.1% - Should You Sell?

Key Points

• United Parcel Service (UPS) shares dropped 1.1% to $84.14, with trading volume exceeding average levels by 170%.
• Analysts have issued mixed ratings on UPS, with target prices ranging from $80 to $120, reflecting a consensus "Hold" rating and an average target price of $111.44.
• UPS recently announced a quarterly dividend of $1.64 per share, resulting in an annual yield of 7.8%, despite a high payout ratio of 97.62%.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report)'s stock price fell 1.1% during mid-day trading on Friday . The stock traded as low as $84.01 and last traded at $84.14. 18,056,318 shares were traded during mid-day trading, an increase of 170% from the average session volume of 6,678,542 shares. The stock had previously closed at $85.05.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on UPS. Barclays dropped their price objective on United Parcel Service from $90.00 to $80.00 and set an "underweight" rating on the stock in a research note on Thursday, July 31st. Oppenheimer dropped their target price on United Parcel Service from $114.00 to $100.00 and set an "outperform" rating on the stock in a research report on Wednesday, July 30th. Evercore ISI dropped their target price on United Parcel Service from $103.00 to $97.00 and set an "in-line" rating on the stock in a research report on Wednesday, July 30th. BMO Capital Markets reaffirmed a "market perform" rating and set a $96.00 target price (down previously from $125.00) on shares of United Parcel Service in a research report on Friday. Finally, Truist Financial dropped their target price on United Parcel Service from $130.00 to $120.00 and set a "buy" rating on the stock in a research report on Wednesday, July 30th. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, fifteen have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $111.44.

United Parcel Service Price Performance

The company has a market cap of $71.31 billion, a PE ratio of 12.52, a price-to-earnings-growth ratio of 1.55 and a beta of 1.08. 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 stock has a 50 day moving average of $89.82 and a 200-day moving average of $98.04.

United Parcel Service (NYSE:UPS - Get Free Report) last issued its 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). The firm had revenue of $21.20 billion during the quarter, compared to analysts' expectations of $20.90 billion. United Parcel Service had a return on equity of 39.61% and a net margin of 6.34%.The business's revenue was down 2.7% on a year-over-year basis. During the same quarter last year, the business earned $1.79 EPS. Equities analysts predict that United Parcel Service, Inc. will post 7.95 earnings per share for the current year.

United Parcel Service Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Monday, August 18th were paid a $1.64 dividend. The ex-dividend date was Monday, August 18th. This represents a $6.56 dividend on an annualized basis and a yield of 7.8%. United Parcel Service's dividend payout ratio (DPR) is 97.62%.

Insider Buying and Selling

In other news, Director William R. Johnson bought 5,000 shares of United Parcel Service stock in a transaction that occurred on Thursday, July 31st. The stock was bought 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 of the company's stock, valued at approximately $878,840. The trade was a 96.90% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Christiana Smith Shi bought 500 shares of United Parcel Service stock in a transaction that occurred on Friday, August 22nd. The stock was purchased at an average price of $88.17 per share, with a total value of $44,085.00. Following the purchase, the director directly owned 500 shares in the company, valued at $44,085. The trade was a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders bought 17,182 shares of company stock worth $1,477,382 in the last 90 days. Insiders own 0.13% of the company's stock.

Hedge Funds Weigh In On United Parcel Service

A number of institutional investors have recently modified their holdings of the stock. Valeo Financial Advisors LLC raised its stake in shares of United Parcel Service by 14.7% during the 2nd quarter. Valeo Financial Advisors LLC now owns 27,769 shares of the transportation company's stock valued at $2,803,000 after buying an additional 3,554 shares during the last quarter. Osaic Holdings Inc. raised its stake in shares of United Parcel Service by 12.1% during the 2nd quarter. Osaic Holdings Inc. now owns 236,083 shares of the transportation company's stock valued at $23,922,000 after buying an additional 25,451 shares during the last quarter. Centaurus Financial Inc. raised its stake in shares of United Parcel Service by 33.2% during the 2nd quarter. Centaurus Financial Inc. now owns 8,771 shares of the transportation company's stock valued at $885,000 after buying an additional 2,185 shares during the last quarter. Impala Asset Management LLC purchased a new position in shares of United Parcel Service during the 2nd quarter valued at about $3,331,000. Finally, Thrivent Financial for Lutherans raised its stake in shares of United Parcel Service by 10.0% during the 2nd quarter. Thrivent Financial for Lutherans now owns 722,383 shares of the transportation company's stock valued at $72,917,000 after buying an additional 65,583 shares during the last quarter. Hedge funds and other 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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