United Parcel Service (NYSE:UPS) Shares Down 8.2% on Disappointing Earnings

United Parcel Service, Inc. (NYSE:UPS) was down 8.2% during mid-day trading on Tuesday following a weaker than expected earnings announcement. The company traded as low as $93.57 and last traded at $93.28. Approximately 2,690,163 shares were traded during mid-day trading, a decline of 54% from the average daily volume of 5,891,785 shares. The stock had previously closed at $101.58.

The transportation company reported $1.55 earnings per share for the quarter, missing the consensus estimate of $1.56 by ($0.01). United Parcel Service had a return on equity of 39.61% and a net margin of 6.34%. The firm had revenue of $21.20 billion for the quarter, compared to analysts’ expectations of $20.90 billion. During the same quarter in the previous year, the firm posted $1.79 earnings per share. The company’s revenue for the quarter was down 2.7% on a year-over-year basis.

United Parcel Service Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, June 5th. Stockholders of record on Monday, May 19th were issued a $1.64 dividend. The ex-dividend date was Monday, May 19th. This represents a $6.56 dividend on an annualized basis and a dividend yield of 7.52%. United Parcel Service’s dividend payout ratio is 95.63%.

Analyst Upgrades and Downgrades

Several analysts recently commented on UPS shares. Wall Street Zen downgraded shares of United Parcel Service from a “buy” rating to a “hold” rating in a research report on Wednesday, May 7th. JPMorgan Chase & Co. decreased their target price on shares of United Parcel Service from $110.00 to $107.00 and set a “neutral” rating for the company in a research note on Tuesday, July 8th. Raymond James Financial lowered their price target on shares of United Parcel Service from $145.00 to $130.00 and set a “strong-buy” rating on the stock in a report on Wednesday, April 9th. Citigroup increased their price objective on United Parcel Service from $122.00 to $127.00 and gave the stock a “buy” rating in a report on Wednesday, July 9th. Finally, Evercore ISI reduced their price objective on United Parcel Service from $103.00 to $97.00 and set an “in-line” rating for the company in a research report on Wednesday. Two analysts have rated the stock with a sell rating, seventeen have given a hold rating, eleven have issued a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $113.38.

Institutional Trading of United Parcel Service

Hedge funds have recently added to or reduced their stakes in the business. Brighton Jones LLC grew its position in United Parcel Service by 63.8% during the fourth quarter. Brighton Jones LLC now owns 12,126 shares of the transportation company’s stock worth $1,529,000 after buying an additional 4,723 shares in the last quarter. Schroder Investment Management Group lifted its position in shares of United Parcel Service by 6.9% in the 4th quarter. Schroder Investment Management Group now owns 190,286 shares of the transportation company’s stock worth $23,847,000 after acquiring an additional 12,286 shares during the period. O Shaughnessy Asset Management LLC grew its holdings in shares of United Parcel Service by 1.6% during the 4th quarter. O Shaughnessy Asset Management LLC now owns 41,386 shares of the transportation company’s stock worth $5,219,000 after purchasing an additional 641 shares in the last quarter. StoneX Group Inc. increased its position in shares of United Parcel Service by 33.7% during the fourth quarter. StoneX Group Inc. now owns 17,722 shares of the transportation company’s stock valued at $2,235,000 after purchasing an additional 4,462 shares during the period. Finally, Headlands Technologies LLC bought a new stake in shares of United Parcel Service during the fourth quarter valued at approximately $248,000. Institutional investors own 60.26% of the company’s stock.

United Parcel Service Stock Down 4.0%

The firm has a market capitalization of $73.84 billion, a price-to-earnings ratio of 12.98, a price-to-earnings-growth ratio of 1.75 and a beta of 1.21. The business has a 50 day moving average of $99.75 and a 200 day moving average of $106.69. The company has a debt-to-equity ratio of 1.51, a current ratio of 1.32 and a quick ratio of 1.09.

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.