United Parcel Service (NYSE:UPS) Trading Up 1.5% Following Insider Buying Activity

Key Points

• United Parcel Service (UPS) shares rose 1.5% following significant insider buying, with CEO Carol B. Tome purchasing 11,682 shares at an average price of $85.67.
• Several analysts downgraded their price targets for UPS, including DA Davidson and HSBC, citing a trend of declining estimates and maintaining a "neutral" rating overall.
• UPS reported a quarterly earnings per share of $1.55, missing estimates, with revenues of $21.20 billion, which was slightly above expectations, despite a year-over-year revenue decline of 2.7%.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report) shares were up 1.5% during trading on Monday following insider buying activity. The company traded as high as $86.11 and last traded at $85.79. Approximately 2,394,342 shares changed hands during mid-day trading, a decline of 62% from the average daily volume of 6,239,595 shares. The stock had previously closed at $84.50.

Specifically, CEO Carol B. Tome purchased 11,682 shares of the business's stock in a transaction on Friday, August 1st. The stock was purchased 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 purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director William R. Johnson purchased 5,000 shares of the business's stock in a transaction on Thursday, July 31st. The stock was purchased at an average cost of $86.50 per share, with a total value of $432,500.00. Following the completion of the acquisition, the director 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.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on UPS. DA Davidson lowered their price objective on shares of United Parcel Service from $154.00 to $150.00 and set a "neutral" rating on the stock in a research report on Wednesday, April 30th. Susquehanna lowered their price objective on shares of United Parcel Service from $110.00 to $100.00 and set a "neutral" rating on the stock in a research report on Wednesday, July 30th. Redburn Atlantic lowered their price objective 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. Evercore ISI lowered their price objective on shares of 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. Finally, HSBC cut shares of United Parcel Service from a "buy" rating to a "hold" rating and lowered their price objective for the company from $140.00 to $105.00 in a research report on Thursday, May 1st. Two analysts have rated the stock with a sell rating, seventeen have assigned a hold rating, eleven have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $112.81.

United Parcel Service Price Performance

The business's 50-day simple moving average is $99.32 and its 200-day simple moving average is $105.82. The stock has a market cap of $72.51 billion, a PE ratio of 12.74, a PEG ratio of 1.53 and a beta of 1.12. The company has a quick ratio of 1.09, a current ratio of 1.32 and a debt-to-equity ratio of 1.51.

United Parcel Service (NYSE:UPS - Get Free Report) last released its quarterly earnings data 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 firm had revenue of $21.20 billion during the quarter, compared to analysts' expectations of $20.90 billion. During the same quarter in the previous year, the firm posted $1.79 EPS. United Parcel Service's revenue was down 2.7% compared to the same quarter last year. On average, research analysts expect that United Parcel Service, Inc. will post 7.95 EPS for the current fiscal year.

United Parcel Service Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, June 5th. Stockholders of record on Monday, May 19th were paid a dividend of $1.64 per share. The ex-dividend date of this dividend was Monday, May 19th. This represents a $6.56 dividend on an annualized basis and a dividend yield of 7.7%. United Parcel Service's payout ratio is presently 97.62%.

Institutional Investors Weigh In On United Parcel Service

A number of large investors have recently modified their holdings of the stock. Arkadios Wealth Advisors boosted its stake in shares of United Parcel Service by 5.1% during the 2nd quarter. Arkadios Wealth Advisors now owns 29,113 shares of the transportation company's stock valued at $2,939,000 after purchasing an additional 1,421 shares in the last quarter. World Investment Advisors boosted its stake in shares of United Parcel Service by 10.0% during the 2nd quarter. World Investment Advisors now owns 21,805 shares of the transportation company's stock valued at $2,201,000 after purchasing an additional 1,987 shares in the last quarter. Flagship Harbor Advisors LLC boosted its stake in shares of United Parcel Service by 57.1% during the 2nd quarter. Flagship Harbor Advisors LLC now owns 7,172 shares of the transportation company's stock valued at $724,000 after purchasing an additional 2,606 shares in the last quarter. Econ Financial Services Corp boosted its stake in shares of United Parcel Service by 29.1% during the 2nd quarter. Econ Financial Services Corp now owns 16,743 shares of the transportation company's stock valued at $1,690,000 after purchasing an additional 3,773 shares in the last quarter. Finally, 626 Financial LLC bought a new stake in shares of United Parcel Service during the 2nd quarter valued at about $228,000. 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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