United Parcel Service (NYSE:UPS) Stock Price Up 1.3% – Still a Buy?

United Parcel Service, Inc. (NYSE:UPS) shares shot up 1.3% during mid-day trading on Monday. The stock traded as high as $110.16 and last traded at $109.6490. Approximately 5,781,049 shares were traded during trading, an increase of 3% from the average session volume of 5,619,118 shares. The stock had previously closed at $108.25.

Trending Headlines about United Parcel Service

Here are the key news stories impacting United Parcel Service this week:

• Positive Sentiment: UPS reported quarterly earnings of $1.69 per share on $22.85 billion in revenue. Recent coverage points to profit growth, cost savings, and a raised outlook as drivers of the stock’s strength. UPS quarterly earnings
• Positive Sentiment: Margin expansion in U.S. domestic packages is a potential growth driver: UPS says it met its third-quarter margin target and expects sequential improvement in the fourth quarter, following its reduction of Amazon delivery volumes. Fool article on UPS growth
• Positive Sentiment: UPS declared its regular quarterly dividend of $1.64 per share, payable December 3. The continued payout may appeal to income-focused investors. UPS dividend announcement
• Negative Sentiment: The dividend has remained at $1.64 for seven quarters, while reports flag that payouts consume a large share of free cash flow—and may have exceeded it. That raises concerns about dividend growth and coverage, even though UPS has maintained its payout. Article on UPS dividend concerns
• Negative Sentiment: Weak package volumes remain a near-term headwind that could limit the benefit of cost savings and improving margins. Article on UPS outlook and risks

Analyst Ratings Changes

A number of equities analysts recently commented on the company. JPMorgan Chase & Co. lowered their target price on United Parcel Service from $118.00 to $115.00 and set a “neutral” rating for the company in a report on Wednesday, July 29th. UBS Group increased their price target on shares of United Parcel Service from $124.00 to $125.00 and gave the stock a “buy” rating in a research report on Wednesday, October 28th. Barclays increased their price target on shares of United Parcel Service from $80.00 to $95.00 and gave the stock an “underweight” rating in a research report on Wednesday, October 28th. Raymond James Financial raised their price objective on shares of United Parcel Service from $127.00 to $131.00 and gave the company a “strong-buy” rating in a research note on Wednesday, July 29th. Finally, Susquehanna lifted their price objective on shares of United Parcel Service from $118.00 to $120.00 and gave the company a “neutral” rating in a report on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, United Parcel Service currently has an average rating of “Hold” and an average price target of $118.45.

United Parcel Service Stock Performance

The stock has a market capitalization of $97.24 billion, a PE ratio of 21.98, a price-to-earnings-growth ratio of 1.96 and a beta of 0.98. The stock has a fifty day moving average of $99.65 and a 200-day moving average of $104.68. The company has a quick ratio of 1.18, a current ratio of 1.24 and a debt-to-equity ratio of 1.67.

United Parcel Service (NYSE:UPS) last released its earnings results on Wednesday, November 4th. The transportation company reported $1.69 EPS for the quarter. United Parcel Service had a return on equity of 37.78% and a net margin of 4.84%. The firm had revenue of $22.85 billion during the quarter. Equities analysts anticipate that United Parcel Service, Inc. will post 7.28 earnings per share for the current fiscal year.

Insider Buying and Selling at United Parcel Service

In related news, insider Matthew Guffey sold 8,318 shares of the firm’s stock in a transaction that occurred on Wednesday, October 28th. The shares were sold at an average price of $105.39, for a total value of $876,634.02. Following the sale, the insider owned 271 shares of the company’s stock, valued at $28,560.69. This trade represents a 96.84% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 0.19% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in UPS. Legacy Wealth Managment LLC ID lifted its position in shares of United Parcel Service by 48.6% during the 1st quarter. Legacy Wealth Managment LLC ID now owns 309 shares of the transportation company’s stock worth $30,000 after purchasing an additional 101 shares during the last quarter. Markowski Investments acquired a new position in shares of United Parcel Service during the second quarter worth $30,000. Allied Private Wealth LLC acquired a new position in shares of United Parcel Service during the second quarter worth $34,000. Grove Bank & Trust grew its stake in shares of United Parcel Service by 49.8% during the second quarter. Grove Bank & Trust now owns 379 shares of the transportation company’s stock worth $41,000 after purchasing an additional 126 shares in the last quarter. Finally, Community Financial Services Group LLC increased its holdings in United Parcel Service by 170.1% in the second quarter. Community Financial Services Group LLC now owns 370 shares of the transportation company’s stock valued at $41,000 after buying an additional 233 shares during the last quarter. Institutional investors and hedge funds own 60.26% of the company’s stock.

United Parcel Service Company Profile

United Parcel Service, Inc (NYSE: UPS) is a global package delivery and logistics company. Its services include the transportation and delivery of packages and freight, time-definite express delivery, supply chain management, customs brokerage, and logistics consulting. UPS serves businesses and consumers through ground, air, and international delivery networks.

The company operates across the United States and in international markets throughout Europe, Asia-Pacific, Latin America, Canada, and other regions.