United Parcel Service (NYSE:UPS) Stock Price Down 2.6% Following Analyst Downgrade

Shares of United Parcel Service, Inc. (NYSE:UPS) fell 2.6% during trading on Tuesday after Bank of America lowered their price target on the stock from $98.00 to $91.00. Bank of America currently has a buy rating on the stock. United Parcel Service traded as low as $85.12 and last traded at $85.15. 3,196,005 shares changed hands during mid-day trading, a decline of 51% from the average session volume of 6,463,266 shares. The stock had previously closed at $87.44.

A number of other research analysts also recently commented on UPS. Stifel Nicolaus cut their target price on shares of United Parcel Service from $124.00 to $120.00 and set a “buy” rating on the stock in a research report on Wednesday, July 30th. BNP Paribas upgraded shares of United Parcel Service to a “hold” rating in a research note on Thursday, July 3rd. Wells Fargo & Company cut their price target on shares of United Parcel Service from $98.00 to $91.00 and set an “equal weight” rating for the company in a report on Wednesday, July 30th. Evercore ISI dropped their target price on shares of United Parcel Service from $103.00 to $97.00 and set an “in-line” rating for the company in a report on Wednesday, July 30th. Finally, BNP Paribas Exane raised shares of United Parcel Service from an “underperform” rating to a “neutral” rating and set a $100.00 price objective for the company in a report on Thursday, July 3rd. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, fourteen have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, United Parcel Service currently has a consensus rating of “Hold” and an average target price of $112.59.

Insiders Place Their Bets

In related news, Director Christiana Smith Shi bought 500 shares of the firm’s stock in a transaction on Friday, August 22nd. The shares were bought at an average cost of $88.17 per share, for a total transaction of $44,085.00. Following the transaction, the director owned 500 shares of the company’s stock, valued at approximately $44,085. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this link. Also, Director William R. Johnson acquired 5,000 shares of the firm’s stock in a transaction that occurred on Thursday, July 31st. The stock was acquired at an average price of $86.50 per share, for a total transaction of $432,500.00. Following the completion of the transaction, the director directly owned 10,160 shares in the company, valued at approximately $878,840. This represents a 96.90% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last ninety days, insiders have purchased 17,182 shares of company stock worth $1,477,382. Corporate insiders own 0.13% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of UPS. Evelyn Partners Investment Management Europe Ltd increased 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 valued at $25,000 after acquiring an additional 131 shares during the last quarter. Graybill Wealth Management LTD. acquired a new stake in United Parcel Service during the 1st quarter worth approximately $26,000. Mid American Wealth Advisory Group Inc. acquired a new stake in United Parcel Service during the 2nd quarter worth approximately $26,000. Pinney & Scofield Inc. acquired a new stake in United Parcel Service during the 4th quarter worth approximately $27,000. Finally, Citizens National Bank Trust Department increased its position in 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 purchasing an additional 210 shares in the last quarter. Institutional investors and hedge funds own 60.26% of the company’s stock.

United Parcel Service Stock Performance

The stock’s 50-day moving average is $94.11 and its 200-day moving average is $100.60. The stock has a market cap of $72.27 billion, a price-to-earnings ratio of 12.69, a P/E/G ratio of 1.60 and a beta of 1.08. 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) last posted its earnings results 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). The business had revenue of $21.20 billion for the quarter, compared to analyst estimates of $20.90 billion. United Parcel Service had a return on equity of 39.61% and a net margin of 6.34%.The firm’s revenue for the quarter was down 2.7% compared to the same quarter last year. During the same period last year, the company posted $1.79 EPS. On average, analysts expect that United Parcel Service, Inc. will post 7.95 EPS for the current year.

United Parcel Service Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 4th. Shareholders of record on Monday, August 18th will be issued a $1.64 dividend. This represents a $6.56 dividend on an annualized basis and a yield of 7.7%. The ex-dividend date is Monday, August 18th. United Parcel Service’s dividend payout ratio is currently 97.62%.

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.