United Parcel Service (NYSE:UPS) Shares Gap Up – Should You Buy?

United Parcel Service, Inc. (NYSE:UPS) shares gapped up before the market opened on Thursday . The stock had previously closed at $131.41, but opened at $145.00. United Parcel Service shares last traded at $140.85, with a volume of 2,470,844 shares.

Analyst Ratings Changes

Several brokerages recently weighed in on UPS. Barclays restated an “underweight” rating and set a $120.00 target price on shares of United Parcel Service in a research note on Monday. Baird R W upgraded United Parcel Service to a “strong-buy” rating in a research report on Wednesday, July 24th. Stifel Nicolaus dropped their target price on United Parcel Service from $170.00 to $151.00 and set a “buy” rating for the company in a report on Wednesday, July 24th. Wells Fargo & Company increased their target price on United Parcel Service from $134.00 to $142.00 and gave the stock an “overweight” rating in a report on Thursday, October 10th. Finally, Stephens dropped their price target on United Parcel Service from $168.00 to $140.00 and set an “equal weight” rating for the company in a report on Wednesday, July 24th. Two research analysts have rated the stock with a sell rating, nine have given a hold rating, ten have issued a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat.com, United Parcel Service presently has an average rating of “Moderate Buy” and a consensus price target of $151.05.

United Parcel Service Price Performance

The company has a debt-to-equity ratio of 1.18, a quick ratio of 1.25 and a current ratio of 1.25. The firm has a market capitalization of $118.25 billion, a P/E ratio of 22.53, a price-to-earnings-growth ratio of 1.93 and a beta of 0.99. The company has a 50-day moving average price of $130.54 and a 200-day moving average price of $136.15.

United Parcel Service (NYSE:UPS) last posted its quarterly earnings results on Tuesday, July 23rd. The transportation company reported $1.79 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.99 by ($0.20). United Parcel Service had a return on equity of 35.27% and a net margin of 5.87%. The company had revenue of $21.82 billion during the quarter, compared to the consensus estimate of $22.17 billion. During the same quarter in the prior year, the business earned $2.54 earnings per share. The firm’s revenue for the quarter was down 1.1% on a year-over-year basis. On average, sell-side analysts predict that United Parcel Service, Inc. will post 7.44 earnings per share for the current year.

United Parcel Service Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 5th. Stockholders of record on Monday, August 19th were given a $1.63 dividend. The ex-dividend date of this dividend was Monday, August 19th. This represents a $6.52 annualized dividend and a dividend yield of 4.72%. United Parcel Service’s dividend payout ratio is currently 106.36%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Natixis bought a new position in United Parcel Service during the first quarter worth about $121,000. Cohen Investment Advisors LLC lifted its holdings in United Parcel Service by 26.4% during the third quarter. Cohen Investment Advisors LLC now owns 18,357 shares of the transportation company’s stock worth $2,503,000 after acquiring an additional 3,835 shares in the last quarter. Financial Partners Group LLC lifted its holdings in United Parcel Service by 23.9% during the second quarter. Financial Partners Group LLC now owns 26,319 shares of the transportation company’s stock worth $3,602,000 after acquiring an additional 5,069 shares in the last quarter. Envestnet Portfolio Solutions Inc. lifted its holdings in United Parcel Service by 12.3% during the first quarter. Envestnet Portfolio Solutions Inc. now owns 59,567 shares of the transportation company’s stock worth $8,853,000 after acquiring an additional 6,502 shares in the last quarter. Finally, Nvwm LLC lifted its holdings in United Parcel Service by 3.7% during the first quarter. Nvwm LLC now owns 2,685 shares of the transportation company’s stock worth $399,000 after acquiring an additional 96 shares in the last quarter. 60.26% of the stock is currently owned by institutional investors.

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.