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

Shares of United Parcel Service, Inc. (NYSE:UPS) 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.

Analysts Set New Price Targets

Several research firms have issued reports on UPS. The Goldman Sachs Group dropped their price target on United Parcel Service from $165.00 to $162.00 and set a “buy” rating on the stock in a research note on Wednesday, October 9th. Robert W. Baird cut their price target on United Parcel Service from $170.00 to $160.00 and set an “outperform” rating for the company in a research note on Wednesday, July 24th. Stephens cut their target price on United Parcel Service from $168.00 to $140.00 and set an “equal weight” rating for the company in a research note on Wednesday, July 24th. Bank of America cut their target price on United Parcel Service from $160.00 to $158.00 and set a “neutral” rating for the company in a research note on Monday, July 22nd. Finally, BMO Capital Markets lowered their price target on shares of United Parcel Service from $169.00 to $155.00 and set a “market perform” rating for the company in a report on Wednesday, July 24th. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating, ten have issued a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $151.05.

United Parcel Service Stock Performance

The company has a current ratio of 1.25, a quick ratio of 1.25 and a debt-to-equity ratio of 1.18. The firm has a market cap of $118.25 billion, a P/E ratio of 22.53, a PEG ratio of 1.93 and a beta of 0.99. The company’s 50-day moving average is $130.54 and its two-hundred day moving average is $136.15.

United Parcel Service (NYSE:UPS) last released its 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 net margin of 5.87% and a return on equity of 35.27%. The business had revenue of $21.82 billion during the quarter, compared to the consensus estimate of $22.17 billion. During the same period in the prior year, the company earned $2.54 earnings per share. The business’s revenue was down 1.1% on a year-over-year basis. As a group, equities analysts predict that United Parcel Service, Inc. will post 7.44 EPS for the current fiscal year.

United Parcel Service Announces Dividend

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

Institutional Investors Weigh In On United Parcel Service

Several large investors have recently made changes to their positions in the business. Bristlecone Advisors LLC increased its position in shares of United Parcel Service by 85.4% during the 3rd quarter. Bristlecone Advisors LLC now owns 24,666 shares of the transportation company’s stock valued at $3,363,000 after purchasing an additional 11,359 shares during the last quarter. MCF Advisors LLC raised its holdings in shares of United Parcel Service by 32.1% in the 3rd quarter. MCF Advisors LLC now owns 1,114 shares of the transportation company’s stock worth $152,000 after purchasing an additional 271 shares during the period. Consolidated Portfolio Review Corp purchased a new position in United Parcel Service in the third quarter valued at approximately $329,000. PFG Investments LLC grew its holdings in United Parcel Service by 12.2% during the third quarter. PFG Investments LLC now owns 13,518 shares of the transportation company’s stock valued at $1,843,000 after purchasing an additional 1,473 shares during the period. Finally, Pathway Financial Advisers LLC raised its stake in shares of United Parcel Service by 7.6% in the third quarter. Pathway Financial Advisers LLC now owns 17,126 shares of the transportation company’s stock valued at $2,335,000 after buying an additional 1,207 shares during the period. 60.26% of the stock is owned by hedge funds and other 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.