United Parcel Service (NYSE:UPS) Trading Up 1.4% - Still a Buy?

Key Points

• United Parcel Service (UPS) shares increased by 1.4% to $83.74, with a trading volume of approximately 6.84 million shares, slightly above the average daily volume.
• Analysts have lowered price targets for UPS, with a consensus target of $111.38, while some maintain buy ratings despite recent earnings missing expectations.
• UPS recently declared a quarterly dividend of $1.64 per share, reflecting an annualized yield of 7.8% and a near 98% payout ratio, indicating significant shareholder return despite challenges.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report) shares were up 1.4% during trading on Friday . The stock traded as high as $83.88 and last traded at $83.74. Approximately 6,836,918 shares changed hands during mid-day trading, an increase of 2% from the average daily volume of 6,726,190 shares. The stock had previously closed at $82.58.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the stock. Susquehanna lowered their price target on shares of United Parcel Service from $110.00 to $100.00 and set a "neutral" rating on the stock in a research note on Wednesday, July 30th. Morgan Stanley lowered their price target on shares of United Parcel Service from $80.00 to $75.00 and set an "underweight" rating on the stock in a research note on Wednesday, July 30th. Truist Financial lowered their price target on shares of United Parcel Service from $130.00 to $120.00 and set a "buy" rating on the stock in a research note on Wednesday, July 30th. Stifel Nicolaus lowered their price target on shares of United Parcel Service from $124.00 to $120.00 and set a "buy" rating on the stock in a research note on Wednesday, July 30th. 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 on the stock in a research note on Thursday, July 3rd. One 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 issued a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $111.38.

United Parcel Service Stock Performance

The firm has a market cap of $70.98 billion, a price-to-earnings ratio of 12.46, a price-to-earnings-growth ratio of 1.55 and a beta of 1.08. The stock's 50 day moving average is $88.21 and its 200 day moving average is $96.80. The company has a current ratio of 1.32, a quick 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 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 quarter last year, the company posted $1.79 EPS. The firm's quarterly revenue was down 2.7% on a year-over-year basis. Analysts anticipate 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 disclosed a quarterly dividend, which was paid on Thursday, September 4th. Shareholders of record on Monday, August 18th were issued a $1.64 dividend. The ex-dividend date of this dividend was Monday, August 18th. This represents a $6.56 dividend on an annualized basis and a yield of 7.8%. United Parcel Service's payout ratio is currently 97.62%.

Insider Buying and Selling at United Parcel Service

In other United Parcel Service news, Director Christiana Smith Shi acquired 500 shares of the business's stock in a transaction 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 acquisition, the director directly owned 500 shares of the company's stock, valued at approximately $44,085. This trade represents a ∞ increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Carol B. Tome acquired 11,682 shares of the business's stock in a transaction on Friday, August 1st. The stock was acquired at an average cost of $85.67 per share, with a total value of $1,000,796.94. Following the acquisition, the chief executive officer directly owned 24,718 shares in the company, valued at approximately $2,117,591.06. This trade represents a 89.61% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders acquired 17,182 shares of company stock valued at $1,477,382 in the last quarter. Company insiders own 0.13% of the company's stock.

Institutional Trading of United Parcel Service

A number of institutional investors and hedge funds have recently made changes to their positions in UPS. Norges Bank bought a new stake in shares of United Parcel Service during the 2nd quarter worth approximately $851,842,000. Goldman Sachs Group Inc. lifted its holdings 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 acquiring an additional 4,988,044 shares during the period. Pacer Advisors Inc. lifted its holdings 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 acquiring an additional 3,961,255 shares during the period. Laurel Wealth Advisors LLC lifted its holdings 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 acquiring an additional 2,481,864 shares during the period. Finally, Nuveen LLC bought a new stake in shares of United Parcel Service during the 1st quarter worth approximately $201,358,000. 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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