United Parcel Service (NYSE:UPS) Trading Up 2.3% on Strong Earnings

Shares of United Parcel Service, Inc. (NYSE:UPS) rose 2.3% during trading on Tuesday following a stronger than expected earnings report. The company traded as high as $149.74 and last traded at $148.75. Approximately 2,519,898 shares changed hands during mid-day trading, a decline of 41% from the average daily volume of 4,297,876 shares. The stock had previously closed at $145.36.

The transportation company reported $1.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.33 by $0.10. United Parcel Service had a net margin of 6.60% and a return on equity of 37.42%. The firm had revenue of $21.70 billion during the quarter, compared to the consensus estimate of $21.84 billion. During the same period last year, the business posted $2.20 earnings per share. The business’s revenue for the quarter was down 5.3% compared to the same quarter last year.

United Parcel Service Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, March 8th. Stockholders of record on Tuesday, February 20th were given a $1.63 dividend. This represents a $6.52 dividend on an annualized basis and a dividend yield of 4.45%. This is an increase from United Parcel Service’s previous quarterly dividend of $1.62. The ex-dividend date of this dividend was Friday, February 16th. United Parcel Service’s payout ratio is presently 94.49%.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on UPS. Oppenheimer lifted their price target on shares of United Parcel Service from $153.00 to $157.00 and gave the company an “outperform” rating in a research report on Wednesday. Argus downgraded shares of United Parcel Service from a “buy” rating to a “hold” rating in a research report on Wednesday, January 31st. Barclays dropped their price target on shares of United Parcel Service from $150.00 to $145.00 and set an “equal weight” rating for the company in a research report on Wednesday, January 31st. Robert W. Baird upgraded shares of United Parcel Service from a “neutral” rating to an “outperform” rating and boosted their price objective for the company from $165.00 to $170.00 in a research report on Friday, February 16th. Finally, Raymond James lowered their price objective on shares of United Parcel Service from $185.00 to $175.00 and set a “strong-buy” rating for the company in a research report on Wednesday, January 31st. One research analyst has rated the stock with a sell rating, fifteen have assigned a hold rating, eight have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $166.96.

Insider Buying and Selling

In other news, Director Eva C. Boratto bought 1,400 shares of the company’s stock in a transaction that occurred on Friday, February 2nd. The shares were acquired at an average price of $142.30 per share, for a total transaction of $199,220.00. Following the completion of the acquisition, the director now directly owns 1,400 shares in the company, valued at $199,220. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.13% of the stock is currently owned by insiders.

Hedge Funds Weigh In On United Parcel Service

Hedge funds and other institutional investors have recently bought and sold shares of the company. MWA Asset Management acquired a new position in United Parcel Service in the third quarter valued at $2,125,000. Chesapeake Wealth Management lifted its holdings in United Parcel Service by 1.3% in the third quarter. Chesapeake Wealth Management now owns 7,886 shares of the transportation company’s stock valued at $1,229,000 after buying an additional 103 shares during the period. Cerity Partners LLC lifted its holdings in United Parcel Service by 13.1% in the fourth quarter. Cerity Partners LLC now owns 387,381 shares of the transportation company’s stock valued at $60,908,000 after buying an additional 44,721 shares during the period. CapWealth Advisors LLC lifted its holdings in United Parcel Service by 1.2% in the fourth quarter. CapWealth Advisors LLC now owns 58,184 shares of the transportation company’s stock valued at $9,148,000 after buying an additional 686 shares during the period. Finally, Telos Capital Management Inc. raised its holdings in shares of United Parcel Service by 1.0% during the third quarter. Telos Capital Management Inc. now owns 74,337 shares of the transportation company’s stock valued at $11,587,000 after purchasing an additional 740 shares during the period. Institutional investors and hedge funds own 60.26% of the company’s stock.

United Parcel Service Stock Down 1.5 %

The firm’s fifty day moving average price is $149.57 and its two-hundred day moving average price is $151.03. The stock has a market cap of $125.01 billion, a price-to-earnings ratio of 21.25, a price-to-earnings-growth ratio of 1.73 and a beta of 1.05. The company has a debt-to-equity ratio of 1.11, a current ratio of 1.10 and a quick ratio of 1.10.

About United Parcel Service

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.