The National Pension Service has increased its holdings in United Parcel Service, Inc. (NYSE: UPS) by acquiring an additional 38,939 shares during the third quarter of 2023. This move marks a 2.1% rise in its position, bringing the total number of shares owned to 1,915,972. The institutional investor’s stake is now valued at approximately $160.04 million, representing about 0.23% of the transportation giant’s total shares.
A variety of other institutional investors have also adjusted their positions in UPS. Notably, Evelyn Partners Investment Management Europe Ltd increased its stake by an impressive 110.1% in the second quarter, now holding 250 shares valued at $25,000. Mid American Wealth Advisory Group Inc. acquired a new stake worth about $26,000, while other firms, including Salzhauer Michael and RMG Wealth Management LLC, have entered the UPS market with stakes valued at approximately $31,000 and $34,000, respectively. Overall, hedge funds and institutional investors collectively own 60.26% of the company’s stock.
Wall Street Analysts Weigh In
Several research firms have recently provided insights into the future of UPS. On January 8, 2024, Wolfe Research reiterated a “peer perform” rating for the company. Following that, Stifel Nicolaus raised its price target from $112.00 to $116.00, assigning a “buy” rating. Meanwhile, Deutsche Bank Aktiengesellschaft lifted its target price from $88.00 to $106.00, maintaining a “hold” rating. Additionally, Jefferies Financial Group increased its target from $115.00 to $130.00, giving UPS a “buy” rating. Finally, Sanford C. Bernstein raised its price target from $122.00 to $125.00, categorizing the company as “outperform.”
Currently, the consensus among analysts is a “Hold” rating, with an average price target of $113.67. The ratings breakdown includes two analysts with a Strong Buy designation, ten with a Buy rating, thirteen offering a Hold rating, and four recommending a Sell.
Performance Metrics and Earnings Update
On January 27, 2024, United Parcel Service reported its quarterly earnings, revealing earnings per share of $2.38, surpassing analysts’ expectations of $2.20 by $0.18. The company generated revenues of $24.50 billion, exceeding projections of $23.91 billion, although this marked a 3.2% decline year-over-year. The firm’s return on equity stood at 38.30%, with a net margin of 6.28%.
UPS’s stock opened at $106.14 on January 26, 2024, with a market capitalization of $90.05 billion. The company has demonstrated strong financial metrics, including a price-to-earnings ratio of 16.18 and a debt-to-equity ratio of 1.45.
In addition to these developments, UPS announced a quarterly dividend of $1.64, payable on March 5, 2024, to shareholders of record as of February 17, 2024. This dividend reflects an annualized payout of $6.56, resulting in a yield of 6.2%.
The company’s recent insider trading activity includes a sale by Norman M. Brothers, Jr., who sold 25,014 shares at an average price of $106.15, totaling approximately $2.66 million. Corporate insiders currently own just 0.13% of UPS’s stock.
United Parcel Service remains a critical player in global logistics, with a history tracing back to 1907. The company specializes in small-package delivery and offers a range of logistics services supported by an extensive transportation network, including air cargo operations and sorting facilities. As it navigates the evolving landscape of supply chain management, UPS continues to attract significant institutional interest and maintain a solid performance record.
