United Parcel Service (NYSE:UPS) Shares Gap Up on Earnings Beat

United Parcel Service, Inc. (NYSE:UPS)’s share price 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.

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

United Parcel Service Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 5th. Stockholders of record on Monday, August 19th were issued a $1.63 dividend. This represents a $6.52 annualized dividend and a dividend yield of 4.74%. The ex-dividend date of this dividend was Monday, August 19th. United Parcel Service’s payout ratio is currently 106.36%.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. Baird R W raised United Parcel Service to a “strong-buy” rating in a report on Wednesday, July 24th. TD Cowen began coverage on shares of United Parcel Service in a research report on Thursday, August 22nd. They issued a “hold” rating and a $144.00 price objective for the company. Susquehanna boosted their price objective on shares of United Parcel Service from $135.00 to $140.00 and gave the stock a “neutral” rating in a research report on Friday. Stephens dropped their price objective on shares of United Parcel Service from $168.00 to $140.00 and set an “equal weight” rating for the company in a research report on Wednesday, July 24th. Finally, Robert W. Baird dropped their price objective on shares of United Parcel Service from $170.00 to $160.00 and set an “outperform” rating for the company in a research report on Wednesday, July 24th. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating, ten have issued a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $151.43.

Hedge Funds Weigh In On United Parcel Service

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. TruNorth Capital Management LLC acquired a new position in shares of United Parcel Service during the 2nd quarter worth about $28,000. Riverview Trust Co bought a new position in United Parcel Service in the 2nd quarter valued at about $32,000. Centerpoint Advisors LLC raised its holdings in United Parcel Service by 291.7% in the 2nd quarter. Centerpoint Advisors LLC now owns 235 shares of the transportation company’s stock valued at $32,000 after acquiring an additional 175 shares during the period. Stephens Consulting LLC raised its holdings in United Parcel Service by 869.6% in the 1st quarter. Stephens Consulting LLC now owns 223 shares of the transportation company’s stock valued at $33,000 after acquiring an additional 200 shares during the period. Finally, Tortoise Investment Management LLC raised its holdings in United Parcel Service by 168.5% in the 2nd 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. 60.26% of the stock is owned by institutional investors and hedge funds.

United Parcel Service Stock Performance

The stock has a market capitalization of $117.75 billion, a P/E ratio of 22.43, a PEG ratio of 1.93 and a beta of 0.99. The company has a debt-to-equity ratio of 1.18, a quick ratio of 1.25 and a current ratio of 1.25. The company’s fifty day simple moving average is $130.73 and its two-hundred day simple moving average is $136.17.

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.