Here’s how investors should make decisions about buying, holding or selling United Parcel Service, Inc. (NYSE:UPS) stock. On Friday, shares of United Parcel Service, Inc. (NYSE:UPS) closed higher after an active session. The shares accumulated 0.16 points or 0.15 percent at $108.1 with a light trade volume of 2.912 million shares. After opening the session at $107.39, the shares went as high as $108.12 and as low as $106.74, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $92.7 billion and now has 857.95 million shares outstanding. United Parcel Service, Inc. (UPS) stock has gained 10.4 percent of market value in 21 trading days.
UPS stock has a trailing 3-year beta of 1.19, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $5.51 a share in the trailing twelve months. The stock’s value has surged 10.84 percent year to date (YTD) against a decline of -3.4 percent in 12 month’s time. The company’s shares still trade -13.58 percent away from its 1-year high of $125.09 and 20.26 percent up from 52-week low of $89.89. The average consensus rating on the company is 2.6, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.
United Parcel Service, Inc. (UPS) will probably climb 7.59 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $145 price as 12-month high target. This represents a whopping 34.14 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $116.5, which represents a return potential of 7.77 percent when compared to the closing price of the stock of $108.1 on Friday, February 08. The lowest price target for the stock is $88 — slightly more than -18.59 percent from UPS’s current share price.
History has shown that shares in United Parcel Service, Inc. have gone up on 18 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. Investors will get their next glimpse of UPS’s Q1 earnings on April 25. Analysts are forecasting revenue to climb 4.6 percent to $17.9B in the fiscal first quarter, while earnings are seen soaring by nearly 0.65 percent to $1.56 per share. It earned $1.94 per share, better than the $1.9, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $19.8B, worse than the $19.9B analysts expected. Earnings are estimated to increase by 44.9 percent this year, 8.94 percent next year and continue to increase by 8.84 percent annually for the next 5 years.
Let’s take a look at some insider activity at United Parcel Service, Inc. (NYSE:UPS) and see the pattern. The earliest insider trade took place on 08/23/2018. Willis George parted with a total of 4.31 thousand shares of company at average share price of $121.34. The total for the sales was set at $523.22 thousand. After this transaction, the President, US Operations account balance stood at 0 thousand shares. The stock lost -10.91 percent since that insider sale. On 08/20/2018, Barber James J., COO, sold 2.5 thousand shares at a price per share of $121.94. This removed 304.85 thousand shares from the insider’s fortune and the stock saw a -11.35 percent retreat in value since the news became public. This transaction left 39.48 thousand shares in the COO account.
On 07/31/2018, SVP, Sales & Solutions Gutmann Kathleen M. performed a sale transaction worth $203.86 thousand. This sale at $119.92 each has eliminated 1.7 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -9.86 percent decrease since the transaction was reported. The insider now is left with 35.21 thousand shares remaining in the account. Brothers Norman M. Jr, who performs the Sr VP, Gen Counsel & Sec job, sold 1.5 thousand shares for $170.13 thousand. The disposal occurred on 05/01/2018 was priced at $113.42 per share. The share price plunged -4.69 percent since the reporting date. Brothers Norman M. Jr now left with a stake of 0 thousand UPS stock worth $0 thousand after the insider selling.
The stock is currently hovering around the first support level of $107.19. Below this, the next support is placed in the zone of $106.27. Till the time, the UPS stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 64.91 on daily chart, which may remain a cause for concern. If the price breaks below $106.27 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $108.57 mark may result into a pull-back move towards $109.03 level.
Shares of United Parcel Service, Inc. (UPS) are trading at a P/E ratio of 19.63 times earnings reported for the past 12 months. The industry UPS operates in has an average P/E of 23.54. Its P/E ratio went as low as 17.71X and as high as 33.88 over the 5-year span.Further, it is sporting a 1.29 on the Price-to-Sales ratio. Compare this with the industry average P/S of 0.6. 83.2 percent is the gross profit margin for United Parcel Service, Inc. and operating margin sits at 10 percent. Along with this, the net profit margin is 7.6 percent.