United Parcel Service (NYSE:UPS) Trading Down 7.8% on Analyst Downgrade

United Parcel Service, Inc. (NYSE:UPS) shares fell 7.8% during trading on Thursday after UBS Group lowered their price target on the stock from $141.00 to $127.00. UBS Group currently has a buy rating on the stock. United Parcel Service traded as low as $101.51 and last traded at $101.58. 3,381,224 shares were traded during mid-day trading, a decline of 28% from the average session volume of 4,665,624 shares. The stock had previously closed at $110.20.

A number of other research firms have also commented on UPS. Barclays reduced their price objective on United Parcel Service from $100.00 to $90.00 and set an “underweight” rating on the stock in a research note on Monday. Morgan Stanley decreased their price objective on shares of United Parcel Service from $100.00 to $82.00 and set an “underweight” rating on the stock in a report on Friday, January 31st. Wells Fargo & Company lowered their price objective on shares of United Parcel Service from $128.00 to $120.00 and set an “overweight” rating for the company in a research report on Thursday, March 27th. Loop Capital reduced their target price on shares of United Parcel Service from $120.00 to $115.00 and set a “hold” rating on the stock in a research report on Monday, February 3rd. Finally, BMO Capital Markets raised shares of United Parcel Service from a “market perform” rating to an “outperform” rating and lowered their price target for the company from $155.00 to $150.00 in a report on Tuesday, December 10th. Two equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating, thirteen have given a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $133.18.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of UPS. IMG Wealth Management Inc. bought a new position in shares of United Parcel Service during the fourth quarter worth $25,000. Generali Investments Management Co LLC acquired a new stake in United Parcel Service during the 4th quarter worth $26,000. IFS Advisors LLC lifted its holdings in United Parcel Service by 232.3% during the fourth quarter. IFS Advisors LLC now owns 216 shares of the transportation company’s stock worth $27,000 after acquiring an additional 151 shares in the last quarter. Pinney & Scofield Inc. acquired a new position in United Parcel Service in the fourth quarter valued at about $27,000. Finally, Fourth Dimension Wealth LLC bought a new stake in shares of United Parcel Service in the fourth quarter worth about $28,000. Institutional investors own 60.26% of the company’s stock.

United Parcel Service Stock Performance

The company has a debt-to-equity ratio of 1.16, a current ratio of 1.17 and a quick ratio of 1.14. The company has a market cap of $85.51 billion, a price-to-earnings ratio of 14.81, a price-to-earnings-growth ratio of 1.55 and a beta of 0.94. The stock has a 50-day moving average price of $116.53 and a 200 day moving average price of $125.86.

United Parcel Service (NYSE:UPS) last announced its earnings results on Thursday, January 30th. The transportation company reported $2.75 EPS for the quarter, topping the consensus estimate of $2.52 by $0.23. United Parcel Service had a net margin of 6.35% and a return on equity of 39.13%. During the same quarter in the prior year, the company posted $2.47 EPS. As a group, analysts anticipate that United Parcel Service, Inc. will post 7.95 EPS for the current fiscal year.

United Parcel Service Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, March 6th. Shareholders of record on Tuesday, February 18th were issued a dividend of $1.64 per share. This represents a $6.56 dividend on an annualized basis and a yield of 6.55%. The ex-dividend date was Tuesday, February 18th. This is a boost from United Parcel Service’s previous quarterly dividend of $1.63. United Parcel Service’s dividend payout ratio is 97.04%.

United Parcel Service Company Profile

United Parcel Service, Inc, a package delivery company, provides transportation and delivery, distribution, contract logistics, ocean freight, airfreight, customs brokerage, and insurance services. It operates through two segments, U.S. Domestic Package and International Package. The U.S. Domestic Package segment offers time-definite delivery of express letters, documents, small packages, and palletized freight through air and ground services in the United States.