United Parcel Service (NYSE:UPS) Shares Down 1.2% – Should You Sell?

Shares of United Parcel Service, Inc. (NYSE:UPS) dropped 1.2% during trading on Monday . The stock traded as low as $100.03 and last traded at $100.6720. Approximately 5,449,435 shares were traded during trading, a decline of 20% from the average daily volume of 6,849,576 shares. The stock had previously closed at $101.92.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the company. Bank of America cut their target price on United Parcel Service from $83.00 to $81.00 and set an “underperform” rating for the company in a research note on Friday, September 26th. Stephens upgraded United Parcel Service to a “hold” rating in a report on Wednesday, October 29th. Susquehanna boosted their price objective on shares of United Parcel Service from $100.00 to $105.00 and gave the company a “neutral” rating in a report on Wednesday, October 29th. Stifel Nicolaus upped their target price on shares of United Parcel Service from $110.00 to $112.00 and gave the company a “buy” rating in a research report on Tuesday, December 16th. Finally, BMO Capital Markets reiterated a “market perform” rating and set a $96.00 price target (down from $125.00) on shares of United Parcel Service in a research report on Friday, September 19th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, sixteen have assigned a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $110.09.

United Parcel Service Stock Performance

The company has a debt-to-equity ratio of 1.50, a quick ratio of 1.30 and a current ratio of 1.30. The company has a market capitalization of $85.33 billion, a price-to-earnings ratio of 15.54, a P/E/G ratio of 2.39 and a beta of 1.11. The firm has a 50-day simple moving average of $94.97 and a two-hundred day simple moving average of $92.86.

United Parcel Service (NYSE:UPS) last issued its quarterly earnings results on Tuesday, October 28th. The transportation company reported $1.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.31 by $0.43. The business had revenue of $21.42 billion for the quarter, compared to analysts’ expectations of $20.94 billion. United Parcel Service had a net margin of 6.15% and a return on equity of 40.07%. The business’s quarterly revenue was down 3.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.76 earnings per share. On average, sell-side analysts anticipate that United Parcel Service, Inc. will post 7.95 EPS for the current fiscal year.

United Parcel Service Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, December 4th. Shareholders of record on Monday, November 17th were given a $1.64 dividend. This represents a $6.56 annualized dividend and a yield of 6.5%. The ex-dividend date of this dividend was Monday, November 17th. United Parcel Service’s dividend payout ratio (DPR) is currently 101.39%.

Institutional Trading of United Parcel Service

Hedge funds have recently modified their holdings of the stock. Norges Bank acquired a new stake in United Parcel Service in the 2nd quarter valued at about $851,842,000. Laurel Wealth Advisors LLC increased its stake in shares of United Parcel Service by 11,517.3% during the second quarter. Laurel Wealth Advisors LLC now owns 2,503,413 shares of the transportation company’s stock worth $252,695,000 after buying an additional 2,481,864 shares during the period. Arrowstreet Capital Limited Partnership raised its holdings in United Parcel Service by 78.7% in the second quarter. Arrowstreet Capital Limited Partnership now owns 4,086,862 shares of the transportation company’s stock valued at $412,528,000 after acquiring an additional 1,799,882 shares in the last quarter. Invesco Ltd. raised its holdings in United Parcel Service by 45.4% in the second quarter. Invesco Ltd. now owns 5,730,804 shares of the transportation company’s stock valued at $578,467,000 after acquiring an additional 1,789,467 shares in the last quarter. Finally, Assenagon Asset Management S.A. lifted its stake in United Parcel Service by 443.6% in the second quarter. Assenagon Asset Management S.A. now owns 1,549,962 shares of the transportation company’s stock worth $156,453,000 after acquiring an additional 1,264,842 shares during the last quarter. 60.26% of the stock is currently owned by institutional investors and hedge funds.

About United Parcel Service

United Parcel Service (NYSE: UPS) is a global package delivery and supply chain management company that provides a broad range of transportation, logistics and e-commerce services. Its core business centers on small-package delivery and last-mile distribution for business and individual customers, supported by a network of ground transportation, air cargo operations (UPS Airlines) and sorting facilities. In addition to parcel delivery, UPS offers freight transportation, contract logistics, warehousing, customs brokerage and reverse-logistics solutions designed to support domestic and international commerce.

The company traces its roots to 1907 when it began as a small messenger service in the United States and later evolved into the United Parcel Service.