United Parcel Service Inc. (UPS) Downgraded by Zacks Investment Research to “Sell”
According to Zacks, “We expect United Parcel's third-quarter results, which are likely to be released next month, to be hurt by adverse foreign currency movements and lower fuel surcharges. The factors had hurt the company's second quarter results as well. The Zacks Consensus Estimate for the third quarter has moved down by 3 cents to $1.43 per share over the last 60 days. Intense competition and other macroeconomic risks add to the woes. We are, however, positive on the company's expansion initiatives. Its decision to enter into Asia’s 3D printing industry bodes well as 3D Printing is considered to be one of the major technological revolutions of recent times. We are also impressed by the company’s efforts to reward investors consistently through share buybacks and dividends.”
A number of other research analysts also recently weighed in on the company. Oppenheimer Holdings Inc. reiterated an outperform rating and set a $116.00 price target (up previously from $112.00) on shares of United Parcel Service in a report on Tuesday, August 2nd. William Blair reiterated an outperform rating on shares of United Parcel Service in a report on Tuesday, September 13th. Morgan Stanley set a $91.00 price target on United Parcel Service and gave the company a sell rating in a report on Monday, August 1st. Citigroup Inc. reiterated a hold rating on shares of United Parcel Service in a report on Thursday, June 30th. Finally, Argus lifted their price target on United Parcel Service from $115.00 to $125.00 and gave the company a buy rating in a report on Tuesday, August 2nd. Three equities research analysts have rated the stock with a sell rating, five have given a hold rating and five have assigned a buy rating to the stock. The company has an average rating of Hold and an average target price of $109.23.
Shares of United Parcel Service (NYSE:UPS) traded down 0.12% during midday trading on Wednesday, hitting $109.12. The company had a trading volume of 274,311 shares. United Parcel Service has a one year low of $87.30 and a one year high of $111.83. The firm has a market cap of $95.81 billion, a price-to-earnings ratio of 19.62 and a beta of 0.91. The company’s 50 day moving average is $109.13 and its 200 day moving average is $106.40.
United Parcel Service (NYSE:UPS) last issued its earnings results on Friday, July 29th. The company reported $1.43 earnings per share (EPS) for the quarter, hitting the Zacks’ consensus estimate of $1.43. The business had revenue of $14.60 billion for the quarter, compared to analysts’ expectations of $14.65 billion. United Parcel Service had a return on equity of 211.88% and a net margin of 8.41%. The company’s quarterly revenue was up 3.8% on a year-over-year basis. During the same period in the previous year, the firm posted $1.35 EPS. Equities analysts forecast that United Parcel Service will post $5.81 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which was paid on Wednesday, August 31st. Investors of record on Tuesday, August 16th were given a dividend of $0.78 per share. The ex-dividend date of this dividend was Friday, August 12th. This represents a $3.12 dividend on an annualized basis and a yield of 2.86%. United Parcel Service’s dividend payout ratio (DPR) is presently 56.01%.
In related news, insider James J. Barber sold 2,268 shares of the stock in a transaction that occurred on Friday, August 12th. The stock was sold at an average price of $109.79, for a total transaction of $249,003.72. Following the sale, the insider now directly owns 31,418 shares in the company, valued at approximately $3,449,382.22. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Corporate insiders own 0.72% of the company’s stock.
A number of hedge funds and other institutional investors have recently bought and sold shares of UPS. Americafirst Capital Management LLC purchased a new position in United Parcel Service during the second quarter valued at about $102,000. Security National Trust Co. increased its position in United Parcel Service by 35.1% in the second quarter. Security National Trust Co. now owns 1,059 shares of the company’s stock valued at $115,000 after buying an additional 275 shares in the last quarter. Advisory Services Network LLC increased its position in United Parcel Service by 17.4% in the second quarter. Advisory Services Network LLC now owns 1,206 shares of the company’s stock valued at $130,000 after buying an additional 179 shares in the last quarter. Kanaly Trust Co increased its position in United Parcel Service by 1.3% in the second quarter. Kanaly Trust Co now owns 1,359 shares of the company’s stock valued at $146,000 after buying an additional 17 shares in the last quarter. Finally, Genovese Burford & Brothers Wealth & Retirement Plan Management LLC increased its position in United Parcel Service by 0.3% in the second quarter. Genovese Burford & Brothers Wealth & Retirement Plan Management LLC now owns 1,465 shares of the company’s stock valued at $157,000 after buying an additional 5 shares in the last quarter. 53.28% of the stock is currently owned by hedge funds and other institutional investors.
About United Parcel Service
United Parcel Service, Inc (UPS) is a package delivery company. The Company is a provider of global supply chain management solutions. It delivers packages each business day in over 220 countries and territories. The Company operates in three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight.
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