United Parcel Service (NYSE:UPS) Hits New 52-Week Low on Disappointing Earnings

Shares of United Parcel Service, Inc. (NYSE:UPS) reached a new 52-week low on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $126.20 and last traded at $126.88, with a volume of 7981372 shares changing hands. The stock had previously closed at $145.18.

The transportation company reported $1.79 earnings per share for the quarter, missing analysts’ consensus estimates of $2.00 by ($0.21). The company had revenue of $21.82 billion for the quarter, compared to analysts’ expectations of $22.17 billion. United Parcel Service had a net margin of 6.60% and a return on equity of 37.42%. United Parcel Service’s quarterly revenue was down 1.1% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.54 earnings per share.

United Parcel Service Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, May 30th. Shareholders of record on Monday, May 13th were paid a dividend of $1.63 per share. The ex-dividend date of this dividend was Friday, May 10th. This represents a $6.52 dividend on an annualized basis and a yield of 5.11%. United Parcel Service’s dividend payout ratio is presently 94.49%.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the stock. Morgan Stanley boosted their price objective on shares of United Parcel Service from $95.00 to $100.00 and gave the company an “underweight” rating in a research report on Wednesday, March 27th. Redburn Atlantic raised shares of United Parcel Service from a “neutral” rating to a “buy” rating and set a $180.00 price objective for the company in a research report on Wednesday, April 3rd. TD Cowen cut their price objective on shares of United Parcel Service from $147.00 to $140.00 and set a “hold” rating for the company in a research report on Thursday, March 28th. Susquehanna upped their target price on shares of United Parcel Service from $150.00 to $160.00 and gave the stock a “neutral” rating in a report on Wednesday, April 24th. Finally, Bank of America dropped their target price on shares of United Parcel Service from $160.00 to $158.00 and set a “neutral” rating for the company in a report on Monday. One investment analyst has rated the stock with a sell rating, thirteen have assigned a hold rating, nine have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $164.45.

Institutional Trading of United Parcel Service

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Lecap Asset Management Ltd. purchased a new stake in United Parcel Service in the 2nd quarter worth about $3,248,000. Fifth Third Wealth Advisors LLC purchased a new stake in United Parcel Service in the 2nd quarter worth about $953,000. Crescent Grove Advisors LLC bought a new position in United Parcel Service in the 2nd quarter worth about $1,049,000. XML Financial LLC grew its stake in United Parcel Service by 6.0% in the 2nd quarter. XML Financial LLC now owns 40,854 shares of the transportation company’s stock worth $5,591,000 after acquiring an additional 2,301 shares in the last quarter. Finally, Veracity Capital LLC bought a new position in United Parcel Service in the 2nd quarter worth about $289,000. 60.26% of the stock is owned by hedge funds and other institutional investors.

United Parcel Service Price Performance

The company has a debt-to-equity ratio of 1.11, a quick ratio of 1.04 and a current ratio of 1.10. The firm has a market capitalization of $109.11 billion, a P/E ratio of 18.37, a P/E/G ratio of 1.86 and a beta of 0.98. The stock’s 50 day simple moving average is $139.29 and its 200 day simple moving average is $146.38.

United Parcel Service Company Profile

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.