United Parcel Service (NYSE:UPS) Trading Up 1.8% - Still a Buy?

Key Points

• United Parcel Service's stock increased by 1.8% to close at $88.03, despite a significant decline in trading volume.
• The company reported Q2 earnings of $1.55 EPS, slightly below analysts' expectations, with a revenue of $21.20 billion, marking a 2.7% decline year-over-year.
• Despite some recent price target reductions by analysts, there remains a consensus average rating of "Hold" for UPS with a consensus price target of $112.81.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report)'s stock price was up 1.8% during trading on Tuesday . The stock traded as high as $88.31 and last traded at $88.03. Approximately 2,401,605 shares changed hands during mid-day trading, a decline of 63% from the average daily volume of 6,423,693 shares. The stock had previously closed at $86.51.

Analyst Ratings Changes

UPS has been the topic of a number of analyst reports. Daiwa America reduced their price objective on shares of United Parcel Service from $120.00 to $103.00 in a research note on Wednesday, April 30th. Truist Financial cut their target price 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. Redburn Atlantic cut 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 note on Thursday, May 8th. DA Davidson cut their target price on shares of United Parcel Service from $154.00 to $150.00 and set a "neutral" rating on the stock in a research note on Wednesday, April 30th. Finally, Galvan Research cut their target price 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 analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, sixteen have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $112.81.

United Parcel Service Trading Up 0.9%

The stock has a market capitalization of $73.99 billion, a P/E ratio of 12.98, a P/E/G ratio of 1.62 and a beta of 1.12. The firm's 50 day moving average price is $96.98 and its 200 day moving average price is $102.54. The company has a debt-to-equity ratio of 1.51, a current ratio of 1.32 and a quick ratio of 1.32.

United Parcel Service (NYSE:UPS - Get Free Report) last posted its 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). The company had revenue of $21.20 billion during the quarter, compared to the consensus estimate of $20.90 billion. United Parcel Service had a return on equity of 39.61% and a net margin of 6.34%.The company's revenue for the quarter was down 2.7% on a year-over-year basis. During the same period last year, the firm posted $1.79 EPS. As a group, equities research analysts expect that United Parcel Service, Inc. will post 7.95 earnings per share for the current fiscal year.

United Parcel Service Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 4th. Stockholders 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 dividend on an annualized basis and a dividend yield of 7.5%. United Parcel Service's dividend payout ratio (DPR) is currently 97.62%.

Insider Buying and Selling

In other United Parcel Service news, CEO Carol B. Tome purchased 11,682 shares of the firm's stock in a transaction dated Friday, August 1st. The shares were purchased at an average cost of $85.67 per share, with a total value of $1,000,796.94. Following the completion of the purchase, the chief executive officer owned 24,718 shares in the company, valued at approximately $2,117,591.06. This represents a 89.61% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through this link. Also, Director William R. Johnson bought 5,000 shares of United Parcel Service stock in a transaction on Thursday, July 31st. The shares were purchased at an average cost of $86.50 per share, for a total transaction of $432,500.00. Following the completion of the purchase, the director directly owned 10,160 shares of the company's stock, valued at $878,840. This trade represents a 96.90% increase in their ownership of the stock. The disclosure for this purchase can be found here. Corporate insiders own 0.13% of the company's stock.

Institutional Trading of United Parcel Service

Several institutional investors and hedge funds have recently bought and sold shares of UPS. Evelyn Partners Investment Management Europe Ltd grew its stake in shares of United Parcel Service by 110.1% during the 2nd quarter. Evelyn Partners Investment Management Europe Ltd now owns 250 shares of the transportation company's stock worth $25,000 after purchasing an additional 131 shares during the period. Graybill Wealth Management LTD. purchased a new position in shares of United Parcel Service during the 1st quarter worth about $26,000. Mid American Wealth Advisory Group Inc. purchased a new position in shares of United Parcel Service during the 2nd quarter worth about $26,000. Pinney & Scofield Inc. purchased a new position in United Parcel Service in the fourth quarter valued at approximately $27,000. Finally, Citizens National Bank Trust Department raised its holdings in United Parcel Service by 525.0% in the first quarter. Citizens National Bank Trust Department now owns 250 shares of the transportation company's stock valued at $27,000 after buying an additional 210 shares during the period. Hedge funds and other 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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