United Parcel Service (NYSE:UPS) Trading Down 1.2% - Here's Why

Key Points

• United Parcel Service (UPS) shares declined 1.2% on Tuesday, with approximately 9.8 million shares traded, representing a 46% increase from the average volume.
• Recent analyst ratings show UPS receives a mix of evaluations, including one Strong Buy, ten Buy, fifteen Hold, and three Sell ratings, with an average price target of $111.38.
• UPS announced a quarterly dividend of $1.64 per share, with a yield of 7.9%, despite a recent earnings report indicating a slight decline in revenue.

Shares of United Parcel Service, Inc. (NYSE:UPS - Get Free Report) were down 1.2% during trading on Tuesday . The stock traded as low as $82.64 and last traded at $83.46. Approximately 9,824,806 shares were traded during mid-day trading, an increase of 46% from the average daily volume of 6,745,807 shares. The stock had previously closed at $84.50.

Analyst Upgrades and Downgrades

Several analysts have recently commented on UPS shares. BNP Paribas upgraded shares of United Parcel Service to a "hold" rating in a research note on Thursday, July 3rd. Wolfe Research reduced their target price on shares of United Parcel Service from $113.00 to $112.00 and set an "outperform" rating for the company in a research note on Tuesday, July 1st. Vertical Research restated a "hold" rating and issued a $103.00 target price on shares of United Parcel Service in a research note on Wednesday, July 30th. Citigroup cut their price target on shares of United Parcel Service from $127.00 to $114.00 and set a "buy" rating for the company in a report on Thursday, July 31st. Finally, BNP Paribas Exane upgraded shares of United Parcel Service from an "underperform" rating to a "neutral" rating and set a $100.00 price target for the company in a report on Thursday, July 3rd. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, fifteen have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $111.38.

United Parcel Service Price Performance

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 company's fifty day simple moving average is $87.61 and its two-hundred day simple moving average is $96.09. The stock has a market capitalization of $70.74 billion, a PE ratio of 12.42, a P/E/G ratio of 1.54 and a beta of 1.08.

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 for the quarter, missing the consensus estimate 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 business had revenue of $21.20 billion for the quarter, compared to analysts' expectations of $20.90 billion. During the same quarter last year, the business posted $1.79 earnings per share. The business's revenue was down 2.7% compared to the same quarter last year. As a group, sell-side analysts predict that United Parcel Service, Inc. will post 7.95 EPS for the current year.

United Parcel Service Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 4th. Shareholders of record on Monday, August 18th were issued a dividend of $1.64 per share. This represents a $6.56 annualized dividend and a yield of 7.9%. The ex-dividend date was Monday, August 18th. United Parcel Service's dividend payout ratio (DPR) is 97.62%.

Insider Buying and Selling at United Parcel Service

In other United Parcel Service news, Director William R. Johnson bought 5,000 shares of the company's stock in a transaction 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 acquisition, the director owned 10,160 shares of the company's stock, valued at $878,840. The trade was a 96.90% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Christiana Smith Shi bought 500 shares of the company's stock in a transaction on Friday, August 22nd. The shares were acquired at an average price of $88.17 per share, with a total value of $44,085.00. Following the completion of the acquisition, the director directly owned 500 shares in the company, valued at $44,085. This represents a ∞ increase in their position. The disclosure for this purchase can be found here. In the last three months, insiders acquired 17,182 shares of company stock worth $1,477,382. 0.13% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On United Parcel Service

Several hedge funds have recently modified their holdings of UPS. Norges Bank acquired a new stake in shares of United Parcel Service during the 2nd quarter worth about $851,842,000. Goldman Sachs Group Inc. boosted its stake in shares of United Parcel Service by 124.0% during 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. boosted its stake in shares of United Parcel Service by 1,056.6% during 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 boosted its stake in shares of United Parcel Service by 11,517.3% during 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 shares of United Parcel Service during the 1st quarter worth about $201,358,000. 60.26% of the stock is owned by institutional investors and hedge funds.

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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