United Parcel Service (NYSE:UPS) Shares Gap Up After Strong Earnings

Shares of United Parcel Service, Inc. (NYSE:UPS) gapped up before the market opened on Thursday following a better than expected earnings announcement. 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 trading hands.

The transportation company reported $1.76 earnings per share for the quarter, topping analysts’ consensus estimates of $1.65 by $0.11. United Parcel Service had a net margin of 5.87% and a return on equity of 35.27%. The firm had revenue of $22.20 billion during the quarter, compared to analysts’ expectations of $22.10 billion. During the same period in the prior year, the company earned $1.57 EPS. The firm’s revenue was up 5.4% on a year-over-year basis.

United Parcel Service Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 5th. Investors of record on Monday, August 19th were given a dividend of $1.63 per share. This represents a $6.52 annualized dividend and a yield of 4.74%. The ex-dividend date was Monday, August 19th. United Parcel Service’s dividend payout ratio (DPR) is presently 106.36%.

Wall Street Analysts Forecast Growth

UPS has been the topic of a number of analyst reports. Oppenheimer dropped their price objective on shares of United Parcel Service from $157.00 to $140.00 and set an “outperform” rating on the stock in a research note on Wednesday, July 24th. Stephens cut their price objective on shares of United Parcel Service from $168.00 to $140.00 and set an “equal weight” rating on the stock in a report on Wednesday, July 24th. Baird R W raised shares of United Parcel Service to a “strong-buy” rating in a research report on Wednesday, July 24th. Wells Fargo & Company lifted their target price on United Parcel Service from $134.00 to $142.00 and gave the stock an “overweight” rating in a research report on Thursday, October 10th. Finally, Bank of America increased their price target on United Parcel Service from $132.00 to $150.00 and gave the company a “neutral” rating in a report on Friday. Two analysts have rated the stock with a sell rating, nine have issued a hold rating, ten have given a buy rating and two have issued a strong buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $151.43.

Institutional Investors Weigh In On United Parcel Service

Several institutional investors and hedge funds have recently bought and sold shares of the business. TruNorth Capital Management LLC bought a new position in shares of United Parcel Service during the second quarter valued at approximately $28,000. Riverview Trust Co bought a new position in United Parcel Service during the 2nd quarter worth $32,000. Centerpoint Advisors LLC increased its position in United Parcel Service by 291.7% in the second quarter. Centerpoint Advisors LLC now owns 235 shares of the transportation company’s stock worth $32,000 after buying an additional 175 shares during the period. Stephens Consulting LLC lifted its stake in United Parcel Service by 869.6% in the first quarter. Stephens Consulting LLC now owns 223 shares of the transportation company’s stock valued at $33,000 after buying an additional 200 shares during the last quarter. Finally, Tortoise Investment Management LLC boosted its holdings in shares of United Parcel Service by 168.5% during the second quarter. Tortoise Investment Management LLC now owns 247 shares of the transportation company’s stock valued at $34,000 after acquiring an additional 155 shares during the period. Institutional investors and hedge funds own 60.26% of the company’s stock.

United Parcel Service Stock Down 0.6 %

The company has a quick ratio of 1.25, a current ratio of 1.25 and a debt-to-equity ratio of 1.18. The firm’s 50-day moving average price is $130.73 and its 200 day moving average price is $136.17. The firm has a market cap of $117.75 billion, a P/E ratio of 22.43, a price-to-earnings-growth ratio of 1.93 and a beta of 0.99.

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.