United Parcel Service Sees Unusually High Options Volume (NYSE:UPS)

Key Points

• United Parcel Service (UPS) experienced a significant increase in call options trading activity, with 76,402 call options purchased, representing a 119% rise compared to typical volume.
• UPS's stock rose by 0.9% to $88.96, while the company reported earnings of $1.55 per share for the last quarter, slightly missing analysts' estimates.
• The company announced a quarterly dividend of $1.64 per share, yielding 7.4%, with a high dividend payout ratio currently at 97.62%.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report) was the target of some unusual options trading activity on Thursday. Investors bought 76,402 call options on the company. Thisisanincreaseofapproximately119% compared to the typical volume of 34,862 call options.

United Parcel Service Stock Up 0.9%

Shares of NYSE:UPS traded up $0.78 during midday trading on Thursday, reaching $88.96. 4,974,131 shares of the company were exchanged, compared to its average volume of 6,368,099. United Parcel Service has a fifty-two week low of $84.28 and a fifty-two week high of $145.01. The company has a quick ratio of 1.32, a current ratio of 1.32 and a debt-to-equity ratio of 1.51. The stock has a fifty day simple moving average of $97.59 and a two-hundred day simple moving average of $103.68. The firm has a market cap of $75.33 billion, a PE ratio of 13.24, a P/E/G ratio of 1.59 and a beta of 1.12.

United Parcel Service (NYSE:UPS - Get Free Report) last issued its quarterly earnings data 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 return on equity of 39.61% and a net margin of 6.34%. The company had revenue of $21.20 billion for the quarter, compared to analyst estimates of $20.90 billion. During the same quarter in the previous year, the business earned $1.79 earnings per share. The company's revenue was down 2.7% on a year-over-year basis. As a group, sell-side analysts forecast that United Parcel Service will post 7.95 earnings per share for the current year.

United Parcel Service Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 4th. Investors of record on Monday, August 18th will be issued a dividend of $1.64 per share. This represents a $6.56 dividend on an annualized basis and a dividend yield of 7.4%. The ex-dividend date is Monday, August 18th. United Parcel Service's dividend payout ratio (DPR) is presently 97.62%.

Insider Transactions at United Parcel Service

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

Institutional Investors Weigh In On United Parcel Service

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Evelyn Partners Investment Management Europe Ltd grew its position in United Parcel Service by 110.1% in the second quarter. Evelyn Partners Investment Management Europe Ltd now owns 250 shares of the transportation company's stock valued at $25,000 after purchasing an additional 131 shares in the last quarter. Graybill Wealth Management LTD. acquired a new stake in shares of United Parcel Service during the 1st quarter worth about $26,000. Mid American Wealth Advisory Group Inc. acquired a new stake in shares of United Parcel Service during the 2nd quarter worth about $26,000. Pinney & Scofield Inc. acquired a new stake in shares of United Parcel Service during the 4th quarter worth about $27,000. Finally, Citizens National Bank Trust Department lifted its stake in shares of United Parcel Service by 525.0% during the 1st quarter. Citizens National Bank Trust Department now owns 250 shares of the transportation company's stock worth $27,000 after buying an additional 210 shares during the last quarter. 60.26% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on UPS. Barclays lowered their target price on shares of 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. Redburn Atlantic lowered 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. JPMorgan Chase & Co. lowered their target price on shares of United Parcel Service from $110.00 to $107.00 and set a "neutral" rating on the stock in a research note on Tuesday, July 8th. Stephens lowered their target price on shares of United Parcel Service from $110.00 to $101.00 in a research note on Wednesday, April 30th. Finally, BNP Paribas raised shares of United Parcel Service to a "hold" rating in a research note on Thursday, July 3rd. Two analysts have rated the stock with a sell rating, seventeen have issued a hold rating, eleven have assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $112.81.

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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