United Parcel Service (UPS) Upgraded to Buy by Zacks Investment Research

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Zacks Investment Research upgraded shares of United Parcel Service (NYSE:UPS) from a hold rating to a buy rating in a research note released on Friday morning. Zacks Investment Research currently has $132.00 target price on the transportation company’s stock.

According to Zacks, “Shares of United Parcel Service have outperformed its industry and rival FedEx over the past six months. Solid e-commerce growth is a huge positive for the company and should aid its third-quarter results, scheduled to be disclosed on Oct 24. Additionally, the company's transformation plan, unveiled in September 2018, is aimed at boosting its bottom line. We are also impressed by UPS' efforts to reward shareholders. To this end, in February 2018, UPS hiked quarterly dividends by 10%. UPS' bullish full-year forecast on free cash flow supports the possibility of a dividend hike in the near future. Moreover, UPS is leaving no stone unturned to perform well in the upcoming holiday season. It intends to hire roughly 100,000 seasonal workers during the season. However, high operating expenses continue to limit bottom-line growth.”

Several other research firms also recently weighed in on UPS. BMO Capital Markets raised their price target on shares of United Parcel Service to $128.00 and gave the stock a market perform rating in a research note on Thursday, July 26th. UBS Group raised shares of United Parcel Service from a neutral rating to a buy rating and set a $125.00 target price on the stock in a research note on Monday, July 16th. ValuEngine raised shares of United Parcel Service from a sell rating to a hold rating in a research note on Monday, July 16th. Cowen reaffirmed a hold rating and set a $128.00 target price on shares of United Parcel Service in a research note on Thursday, July 26th. Finally, Berenberg Bank began coverage on shares of United Parcel Service in a research note on Friday, September 21st. They set a hold rating and a $125.00 target price on the stock. They noted that the move was a valuation call. One investment analyst has rated the stock with a sell rating, eleven have issued a hold rating, nine have assigned a buy rating and one has given a strong buy rating to the stock. The stock has an average rating of Hold and an average price target of $125.49.

Shares of NYSE:UPS traded up $1.88 during midday trading on Friday, hitting $115.64. The company’s stock had a trading volume of 2,922,666 shares, compared to its average volume of 3,493,241. The company has a current ratio of 1.21, a quick ratio of 1.21 and a debt-to-equity ratio of 8.54. The company has a market cap of $100.45 billion, a P/E ratio of 19.24, a P/E/G ratio of 1.74 and a beta of 1.16. United Parcel Service has a 12-month low of $101.45 and a 12-month high of $135.53.

United Parcel Service (NYSE:UPS) last posted its quarterly earnings results on Wednesday, July 25th. The transportation company reported $1.94 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.93 by $0.01. The firm had revenue of $17.46 billion for the quarter, compared to the consensus estimate of $17.34 billion. United Parcel Service had a net margin of 7.49% and a return on equity of 364.89%. The company’s revenue for the quarter was up 9.6% on a year-over-year basis. During the same period last year, the firm posted $1.58 earnings per share. On average, analysts expect that United Parcel Service will post 7.25 earnings per share for the current year.

In other United Parcel Service news, COO James J. Barber sold 2,500 shares of United Parcel Service stock in a transaction dated Monday, August 20th. The shares were sold at an average price of $121.94, for a total transaction of $304,850.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, SVP Kathleen M. Gutmann sold 1,700 shares of United Parcel Service stock in a transaction dated Tuesday, July 31st. The shares were sold at an average price of $119.92, for a total transaction of $203,864.00. The disclosure for this sale can be found here. Insiders have sold 8,512 shares of company stock worth $1,031,932 over the last ninety days. 0.56% of the stock is owned by insiders.

Institutional investors and hedge funds have recently made changes to their positions in the business. Segall Bryant & Hamill LLC raised its position in United Parcel Service by 0.6% during the 1st quarter. Segall Bryant & Hamill LLC now owns 69,630 shares of the transportation company’s stock worth $7,287,000 after buying an additional 439 shares during the last quarter. Montag A & Associates Inc. grew its stake in shares of United Parcel Service by 2.8% during the 2nd quarter. Montag A & Associates Inc. now owns 17,536 shares of the transportation company’s stock worth $1,863,000 after purchasing an additional 471 shares during the period. Bridge Creek Capital Management LLC grew its stake in shares of United Parcel Service by 1.4% during the 3rd quarter. Bridge Creek Capital Management LLC now owns 36,252 shares of the transportation company’s stock worth $4,232,000 after purchasing an additional 485 shares during the period. First Allied Advisory Services Inc. grew its stake in shares of United Parcel Service by 2.9% during the 2nd quarter. First Allied Advisory Services Inc. now owns 17,469 shares of the transportation company’s stock worth $1,849,000 after purchasing an additional 492 shares during the period. Finally, Stanley Laman Group Ltd. grew its stake in shares of United Parcel Service by 7.2% during the 2nd quarter. Stanley Laman Group Ltd. now owns 7,427 shares of the transportation company’s stock worth $789,000 after purchasing an additional 496 shares during the period. Institutional investors and hedge funds own 53.96% of the company’s stock.

About United Parcel Service

United Parcel Service, Inc provides letter and package delivery, specialized transportation, logistics, and financial services. It operates through three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight. The U.S. Domestic Package segment offers time-definite delivery of letters, documents, small packages, and palletized freight through air and ground services in the United States.

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