United Parcel Service, Inc. (NYSE:UPS) Receives $110.85 Average Target Price from Analysts

Shares of United Parcel Service, Inc. (NYSE:UPS) have been given a consensus recommendation of “Hold” by the twenty-three brokerages that are presently covering the firm, MarketBeat.com reports. Four research analysts have rated the stock with a sell recommendation, ten have assigned a hold recommendation, seven have issued a buy recommendation and two have assigned a strong buy recommendation to the company. The average twelve-month price target among brokerages that have issued a report on the stock in the last year is $111.10.

A number of equities analysts have recently issued reports on the stock. UBS Group lowered their target price on shares of United Parcel Service from $125.00 to $123.00 and set a “buy” rating on the stock in a research report on Wednesday, April 29th. Evercore reduced their price target on shares of United Parcel Service from $115.00 to $113.00 and set an “in-line” rating for the company in a research report on Wednesday, April 22nd. Weiss Ratings cut shares of United Parcel Service from a “hold (c)” rating to a “sell (d+)” rating in a research note on Friday, May 8th. Stephens raised shares of United Parcel Service to a “strong-buy” rating in a research report on Wednesday. Finally, Susquehanna lifted their price objective on shares of United Parcel Service from $116.00 to $118.00 and gave the company a “neutral” rating in a research note on Wednesday, April 29th.

Institutional Trading of United Parcel Service

A number of hedge funds have recently added to or reduced their stakes in UPS. University of Texas Texas AM Investment Management Co. purchased a new position in United Parcel Service in the fourth quarter worth $25,000. IFC & Insurance Marketing Inc. acquired a new stake in shares of United Parcel Service during the 4th quarter valued at approximately $25,000. Coston McIsaac & Partners boosted its stake in shares of United Parcel Service by 77.8% during the 4th quarter. Coston McIsaac & Partners now owns 272 shares of the transportation company’s stock worth $27,000 after acquiring an additional 119 shares in the last quarter. Torren Management LLC purchased a new stake in shares of United Parcel Service during the 4th quarter worth approximately $29,000. Finally, Kemnay Advisory Services Inc. acquired a new stake in shares of United Parcel Service in the 4th quarter worth approximately $29,000. 60.26% of the stock is owned by institutional investors and hedge funds.

United Parcel Service Price Performance

UPS stock opened at $110.62 on Friday. The business’s 50-day moving average is $105.23 and its two-hundred day moving average is $105.54. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.21 and a quick ratio of 1.21. The firm has a market capitalization of $94.03 billion, a P/E ratio of 17.90, a P/E/G ratio of 1.75 and a beta of 1.05. United Parcel Service has a 1 year low of $82.00 and a 1 year high of $122.41.

United Parcel Service (NYSE:UPS) last announced its quarterly earnings data on Tuesday, April 28th. The transportation company reported $1.07 EPS for the quarter, beating analysts’ consensus estimates of $1.02 by $0.05. United Parcel Service had a net margin of 5.94% and a return on equity of 35.95%. The company had revenue of $21.20 billion for the quarter, compared to the consensus estimate of $20.99 billion. During the same period in the prior year, the firm posted $1.49 EPS. The company’s quarterly revenue was down 1.4% compared to the same quarter last year. Analysts anticipate that United Parcel Service will post 7.11 earnings per share for the current fiscal year.

United Parcel Service Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, June 4th. Investors of record on Monday, May 18th were given a $1.64 dividend. This represents a $6.56 annualized dividend and a yield of 5.9%. The ex-dividend date was Monday, May 18th. United Parcel Service’s payout ratio is 106.15%.

More United Parcel Service News

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

• Positive Sentiment: Citigroup raised its price target on UPS to $132 from $127 and kept a buy rating, implying meaningful upside from current levels. The bullish call supports sentiment around the stock. Benzinga report on Citigroup price-target increase
• Positive Sentiment: Stephens upgraded UPS to strong-buy, adding to the recent wave of favorable analyst commentary. Zacks report on Stephens upgrade
• Positive Sentiment: UPS drew unusual options activity, with traders buying 34,148 call options, about 33% above normal volume. Heavy call buying can signal bullish speculation.
• Positive Sentiment: UPS’s addition to key Russell defensive indexes could increase demand from index-linked funds and reinforce the stock’s defensive appeal. Yahoo Finance article on Russell defensive index addition
• Neutral Sentiment: Several articles highlighted that UPS remains heavily watched ahead of earnings, with some commentary arguing the company has a decent chance to beat estimates again based on its recent surprise history. Zacks earnings preview
• Negative Sentiment: Bearish commentary warned that UPS may face muted revenue growth, margin pressure, and possible dividend risk if free cash flow remains weak, which could cap further upside. Seeking Alpha bearish analysis
• Negative Sentiment: Another analysis said recent progress could be short-lived and pointed to intensified competition from Amazon’s logistics expansion as a threat to UPS’s growth and margins. Seeking Alpha consolidation analysis

United Parcel Service Company Profile

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.