United Parcel Service (NYSE:UPS) Shares Down 17.7% – Time to Sell?

United Parcel Service, Inc. (NYSE:UPS)’s share price fell 17.7% during trading on Thursday . The company traded as low as $110.04 and last traded at $110.16. 17,117,129 shares traded hands during mid-day trading, an increase of 247% from the average session volume of 4,936,639 shares. The stock had previously closed at $133.78.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on UPS. BMO Capital Markets upgraded shares of United Parcel Service from a “market perform” rating to an “outperform” rating and decreased their price target for the stock from $155.00 to $150.00 in a research note on Tuesday, December 10th. Susquehanna increased their target price on shares of United Parcel Service from $135.00 to $140.00 and gave the stock a “neutral” rating in a research note on Friday, October 25th. StockNews.com upgraded United Parcel Service from a “hold” rating to a “buy” rating in a research report on Wednesday, November 6th. UBS Group increased their price objective on United Parcel Service from $159.00 to $170.00 and gave the stock a “buy” rating in a research report on Friday, October 25th. Finally, Citigroup lowered their target price on United Parcel Service from $163.00 to $158.00 and set a “buy” rating on the stock in a research note on Tuesday, November 12th. Two equities research analysts have rated the stock with a sell rating, five have assigned a hold rating, fifteen have issued a buy rating and two have issued a strong buy rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $151.24.

United Parcel Service Stock Performance

The stock has a 50-day simple moving average of $129.05 and a 200-day simple moving average of $130.72. The stock has a market cap of $98.09 billion, a PE ratio of 17.36, a P/E/G ratio of 1.86 and a beta of 1.00. The company has a debt-to-equity ratio of 1.20, a current ratio of 1.14 and a quick ratio of 1.14.

United Parcel Service (NYSE:UPS) last posted its earnings results on Thursday, January 30th. The transportation company reported $2.75 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.52 by $0.23. United Parcel Service had a net margin of 6.25% and a return on equity of 37.38%. During the same quarter in the prior year, the firm posted $2.47 earnings per share. Equities analysts predict that United Parcel Service, Inc. will post 7.49 earnings per share for the current fiscal year.

United Parcel Service Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, December 5th. Investors of record on Monday, November 18th were issued a dividend of $1.63 per share. The ex-dividend date was Monday, November 18th. This represents a $6.52 annualized dividend and a dividend yield of 5.67%. United Parcel Service’s payout ratio is 98.49%.

Insider Activity at United Parcel Service

In other United Parcel Service news, insider Norman M. Brothers, Jr. sold 7,325 shares of the stock in a transaction that occurred on Monday, November 25th. The shares were sold at an average price of $138.57, for a total value of $1,015,025.25. Following the completion of the sale, the insider now owns 45,098 shares of the company’s stock, valued at $6,249,229.86. This trade represents a 13.97 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.13% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Quarry LP boosted its holdings in United Parcel Service by 453.6% in the second quarter. Quarry LP now owns 537 shares of the transportation company’s stock valued at $73,000 after purchasing an additional 440 shares during the last quarter. B. Riley Wealth Advisors Inc. grew its holdings in United Parcel Service by 8.3% during the 2nd quarter. B. Riley Wealth Advisors Inc. now owns 24,205 shares of the transportation company’s stock worth $3,312,000 after acquiring an additional 1,863 shares in the last quarter. 3Chopt Investment Partners LLC acquired a new position in United Parcel Service in the second quarter worth about $363,000. New Wave Wealth Advisors LLC bought a new stake in United Parcel Service in the second quarter valued at about $231,000. Finally, Farmers National Bank raised its stake in United Parcel Service by 0.6% during the second quarter. Farmers National Bank now owns 29,366 shares of the transportation company’s stock valued at $4,019,000 after buying an additional 185 shares in the last quarter. 60.26% of the stock is currently owned by hedge funds and other institutional investors.

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.