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

United Parcel Service, Inc. (NYSE:UPS) shares were up 2.3% on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $149.74 and last traded at $148.75. Approximately 2,519,898 shares traded hands during 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 EPS for the quarter, beating analysts’ consensus estimates of $1.33 by $0.10. United Parcel Service had a return on equity of 37.42% and a net margin of 6.60%. The firm had revenue of $21.70 billion for the quarter, compared to the consensus estimate of $21.84 billion. During the same quarter in the previous year, the company posted $2.20 earnings per share. The business’s quarterly revenue was down 5.3% compared to the same quarter last year.

United Parcel Service Increases Dividend

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

Analyst Upgrades and Downgrades

UPS has been the topic of a number of recent research reports. Susquehanna boosted their target price on United Parcel Service from $150.00 to $160.00 and gave the company a “neutral” rating in a research note on Wednesday. JPMorgan Chase & Co. reduced their price target on United Parcel Service from $154.00 to $150.00 and set a “neutral” rating for the company in a research report on Tuesday, April 9th. Barclays reduced their price target on 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. Bank of America boosted their price target on United Parcel Service from $157.00 to $160.00 and gave the stock a “neutral” rating in a research report on Wednesday. Finally, BMO Capital Markets boosted their price target on United Parcel Service from $165.00 to $169.00 and gave the stock a “market perform” rating in a research report on Wednesday. One equities research analyst has rated the stock with a sell rating, fifteen have given a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, United Parcel Service currently has an average rating of “Hold” and a consensus price target of $166.96.

Insider Activity

In related news, Director Eva C. Boratto acquired 1,400 shares of the stock in a transaction dated Friday, February 2nd. The shares were bought at an average cost of $142.30 per share, for a total transaction of $199,220.00. Following the purchase, the director now owns 1,400 shares in the company, valued at approximately $199,220. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. Corporate insiders own 0.13% of the company’s stock.

Institutional Investors Weigh In On United Parcel Service

A number of large investors have recently bought and sold shares of the business. Harbor Capital Advisors Inc. grew its position in United Parcel Service by 0.4% during the 4th quarter. Harbor Capital Advisors Inc. now owns 17,530 shares of the transportation company’s stock worth $2,756,000 after acquiring an additional 64 shares during the last quarter. First Financial Corp IN boosted its position in United Parcel Service by 24.2% in the 4th quarter. First Financial Corp IN now owns 334 shares of the transportation company’s stock valued at $53,000 after buying an additional 65 shares during the last quarter. Gleason Group Inc. boosted its position in United Parcel Service by 1.1% in the 4th quarter. Gleason Group Inc. now owns 6,351 shares of the transportation company’s stock valued at $999,000 after buying an additional 66 shares during the last quarter. Cullen Investment Group LTD. boosted its position in United Parcel Service by 0.7% in the 1st quarter. Cullen Investment Group LTD. now owns 9,921 shares of the transportation company’s stock valued at $1,480,000 after buying an additional 68 shares during the last quarter. Finally, Advisors Capital Management LLC boosted its position in United Parcel Service by 0.5% in the 3rd quarter. Advisors Capital Management LLC now owns 15,085 shares of the transportation company’s stock valued at $2,351,000 after buying an additional 69 shares during the last quarter. 60.26% of the stock is currently owned by institutional investors.

United Parcel Service Price Performance

The stock has a market capitalization of $125.01 billion, a P/E 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 quick ratio of 1.10 and a current ratio of 1.10. The stock has a 50-day simple moving average of $149.57 and a 200 day simple moving average of $151.03.

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.