United Parcel Service (NYSE:UPS) Stock Price Down 1.1% - Here's Why

The shares of United Parcel Service, Inc. (NYSE:UPS) experienced a decline of 1.1% during mid-day trading on Thursday. The stock fell to a low of $127.62 before rebounding slightly to last trade at $127.71. In total, approximately 927,261 shares changed hands, reflecting a significant drop of 78% from the average daily volume of 4,170,199 shares. This decline comes on the heels of a previous closing price of $129.12.

Analyst Ratings Changes

The downward trend in UPS stock appears to be ongoing. There has been a flurry of activity from research analysts regarding the company. Recently, Citigroup revised its price target for United Parcel Service from $163.00 to $158.00, maintaining a "buy" rating in their November 12 report. Susquehanna also raised its target from $135.00 to $140.00 while giving a "neutral" rating on October 25. Stifel Nicolaus lifted their price target from $151.00 to $156.00, also assigning a "buy" rating. Oppenheimer increased their target from $140.00 to $146.00, branding the stock as "outperform" as of October 28. UBS Group raised its target price from $159.00 to $170.00, keeping a "buy" rating. Overall, there are two sell ratings, seven hold ratings, thirteen buy ratings, and two strong buy ratings, giving UPS a consensus rating of "Moderate Buy" with a target price of $151.29 according to MarketBeat.com.

United Parcel Service Price Performance

United Parcel Service boasts a market capitalization of $109.66 billion and has a price-to-earnings ratio of 19.29, coupled with a P/E/G ratio of 2.06. The stock's beta is recorded at 0.98. Its performance is indicated by a 50-day simple moving average of $133.02 and a 200-day simple moving average of $132.88. The company's current ratio and quick ratio stand both at 1.14, while the debt-to-equity ratio is at 1.20.

On October 24, United Parcel Service released its latest quarterly earnings data, reporting earnings per share of $1.76, which exceeded analysts' expectations of $1.63 by $0.13. The company generated revenue of $22.20 billion, surpassing the consensus estimate of $22.10 billion. The net margin stood at 6.25%, with a remarkable return on equity of 37.38%. This revenue reflects a 5.4% increase from the same quarter last year, where the earnings per share were $1.57. Analysts forecast that UPS will achieve 7.48 earnings per share for the current fiscal year.

United Parcel Service Dividend Announcement

United Parcel Service has also announced a quarterly dividend recently, which was paid on December 5. Shareholders who were on record as of November 18 received a dividend payment of $1.63 per share. The ex-dividend date for this payment was also November 18. This translates to an annualized dividend of $6.52, creating a yield of 5.07%. Notably, the company’s dividend payout ratio is currently at 98.49%.

Insider Buying and Selling

In insider news, Norman M. Brothers, Jr., an insider at UPS, sold 7,325 shares on November 25 at an average price of $138.57, totaling approximately $1,015,025.25. Following this transaction, they now hold 45,098 shares valued at around $6,249,229.86. This sale indicates a 13.97% decrease in their stock ownership. Such transactions are typically disclosed in filings with the Securities & Exchange Commission.

Institutional Inflows and Outflows

Several institutional investors have made recent adjustments to their positions in United Parcel Service. For instance, Logan Capital Management Inc. increased its stake by 11.9% during the third quarter, acquiring an additional 9,250 shares, bringing their total to 87,069 shares valued at $11,871,000. Inspire Trust Co. N.A. boosted its holding by 27.0%, now owning 24,500 shares worth $3,340,000 after a purchase of 5,209 additional shares. Peapack Gladstone Financial Corp raised its position by 15.7%, and Synovus Financial Corp increased their shares by 8.6% during the same period. Tidal Investments LLC also lifted its stake by 26.8%. Collectively, institutional investors and hedge funds now own 60.26% of UPS stock.

About United Parcel Service

United Parcel Service, Inc. is a leading package delivery service provider. The company offers a wide spectrum of services including transportation, delivery, distribution, logistics, ocean and air freight, customs brokerage, and insurance solutions. It operates primarily through two segments: U.S. Domestic Package and International Package, ensuring timely delivery of both express letters and freight within the United States.

UPS, stocks, prices