United Parcel Service (NYSE:UPS) Trading Down 17.7% – Here’s Why

United Parcel Service, Inc. (NYSE:UPS)’s stock price dropped 17.7% during mid-day trading on Thursday . The stock traded as low as $110.04 and last traded at $110.16. Approximately 17,117,129 shares changed hands during trading, an increase of 247% from the average daily volume of 4,936,639 shares. The stock had previously closed at $133.78.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on UPS shares. Susquehanna lowered their price target on United Parcel Service from $140.00 to $130.00 and set a “neutral” rating for the company in a report on Friday. Raymond James lowered their target price on shares of United Parcel Service from $155.00 to $145.00 and set a “strong-buy” rating for the company in a research note on Friday. The Goldman Sachs Group cut their price target on shares of United Parcel Service from $166.00 to $147.00 and set a “buy” rating on the stock in a research note on Friday. Robert W. Baird downgraded shares of United Parcel Service from an “outperform” rating to a “neutral” rating and lowered their price objective for the stock from $160.00 to $130.00 in a research note on Friday. Finally, Morgan Stanley cut their target price on United Parcel Service from $100.00 to $82.00 and set an “underweight” rating on the stock in a research report on Friday. Two investment analysts have rated the stock with a sell rating, seven have issued a hold rating, fourteen have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $141.95.

United Parcel Service Stock Performance

The company has a debt-to-equity ratio of 1.20, a quick ratio of 1.14 and a current ratio of 1.14. The firm has a market capitalization of $97.45 billion, a PE ratio of 17.25, a price-to-earnings-growth ratio of 1.88 and a beta of 1.00. The firm’s 50 day moving average price is $128.31 and its 200-day moving average price is $130.40.

United Parcel Service (NYSE:UPS) last issued its quarterly earnings results on Thursday, January 30th. The transportation company reported $2.75 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.52 by $0.23. United Parcel Service had a return on equity of 37.38% and a net margin of 6.25%. During the same quarter in the prior year, the company earned $2.47 EPS. On average, research analysts expect that United Parcel Service, Inc. will post 7.5 EPS for the current year.

United Parcel Service Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, December 5th. Investors of record on Monday, November 18th were issued a $1.63 dividend. This represents a $6.52 annualized dividend and a yield of 5.71%. The ex-dividend date was Monday, November 18th. United Parcel Service’s payout ratio is presently 98.49%.

Insider Buying and Selling at United Parcel Service

In other United Parcel Service news, insider Norman M. Brothers, Jr. sold 7,325 shares of the stock in a transaction that occurred on Monday, November 25th. The stock was sold at an average price of $138.57, for a total transaction of $1,015,025.25. Following the completion of the transaction, the insider now owns 45,098 shares of the company’s stock, valued at $6,249,229.86. This represents a 13.97 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 0.13% of the company’s stock.

Institutional Trading of United Parcel Service

Several large investors have recently made changes to their positions in the company. Global Retirement Partners LLC boosted its stake in United Parcel Service by 4.6% during the 4th quarter. Global Retirement Partners LLC now owns 13,170 shares of the transportation company’s stock worth $1,661,000 after purchasing an additional 584 shares during the last quarter. Atlas Legacy Advisors LLC acquired a new position in United Parcel Service during the fourth quarter worth about $264,000. Bank of Jackson Hole Trust acquired a new position in United Parcel Service during the fourth quarter worth about $303,000. New York State Common Retirement Fund grew its stake in United Parcel Service by 0.3% during the 4th quarter. New York State Common Retirement Fund now owns 867,132 shares of the transportation company’s stock valued at $109,345,000 after acquiring an additional 3,000 shares in the last quarter. Finally, Mcdonald Partners LLC raised its holdings in United Parcel Service by 2.8% in the 4th quarter. Mcdonald Partners LLC now owns 24,412 shares of the transportation company’s stock valued at $3,078,000 after acquiring an additional 669 shares during the last quarter. 60.26% of the stock is currently 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.