United Parcel Service (NYSE:UPS) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Friday.

According to Zacks, “High costs are expected to hurt United Parcel Service's fourth-quarter 2018 results, expected next month. The company's high capital expenditures are pushing up costs. For 2018, capital expenditures are projected between $6.5 billion and $7 billion. With the company having Chinese exposure, trade disputes between United States and China might also have an impact on the stock's performance. Shares of the company have lost nearly 25% in a year's time. Despite such negatives, the company is being aided by solid e-commerce growth, which is expected to boost top-line results in the final quarter. We are also impressed with the company’s efforts to reward investors through share buybacks and dividend payouts. The current tax law is a boon for U.S. based transportation companies like UPS. “

Several other research firms have also recently issued reports on UPS. Loop Capital raised their target price on shares of United Parcel Service to $145.00 and gave the stock a “positive” rating in a research report on Friday, September 14th. Berenberg Bank started coverage on shares of United Parcel Service in a research report on Friday, September 21st. They set a “hold” rating and a $125.00 price target on the stock. They noted that the move was a valuation call. Morgan Stanley lifted their price target on shares of United Parcel Service from $92.00 to $93.00 and gave the company a “sell” rating in a research report on Tuesday, October 9th. BMO Capital Markets raised shares of United Parcel Service from a “market perform” rating to an “outperform” rating and set a $128.00 price target on the stock in a research report on Monday, October 1st. Finally, KeyCorp started coverage on shares of United Parcel Service in a research report on Thursday, September 27th. They set a “sector weight” rating on the stock. They noted that the move was a valuation call. Two analysts have rated the stock with a sell rating, twelve have issued a hold rating, seven have given a buy rating and one has given a strong buy rating to the company. The stock currently has a consensus rating of “Hold” and an average target price of $123.83.

Shares of UPS traded down $1.15 during mid-day trading on Friday, hitting $97.76. The company had a trading volume of 472,527 shares, compared to its average volume of 3,714,972. The company has a debt-to-equity ratio of 6.43, a quick ratio of 1.14 and a current ratio of 1.14. United Parcel Service has a 1-year low of $89.89 and a 1-year high of $135.53. The stock has a market capitalization of $84.14 billion, a PE ratio of 16.24, a P/E/G ratio of 1.37 and a beta of 1.22.

United Parcel Service (NYSE:UPS) last released its earnings results on Wednesday, October 24th. The transportation company reported $1.82 earnings per share (EPS) for the quarter, hitting the Thomson Reuters’ consensus estimate of $1.82. United Parcel Service had a net margin of 7.68% and a return on equity of 307.54%. The business had revenue of $17.44 billion for the quarter, compared to analysts’ expectations of $17.48 billion. During the same period last year, the company earned $1.45 earnings per share. The company’s quarterly revenue was up 7.9% on a year-over-year basis. As a group, sell-side analysts expect that United Parcel Service will post 7.22 earnings per share for the current fiscal year.

A number of hedge funds have recently added to or reduced their stakes in UPS. Ronna Sue Cohen boosted its holdings in shares of United Parcel Service by 34.9% during the third quarter. Ronna Sue Cohen now owns 27,783 shares of the transportation company’s stock valued at $3,244,000 after acquiring an additional 7,193 shares during the period. Thrivent Financial for Lutherans boosted its holdings in shares of United Parcel Service by 0.9% during the third quarter. Thrivent Financial for Lutherans now owns 448,441 shares of the transportation company’s stock valued at $52,355,000 after acquiring an additional 4,002 shares during the period. NN Investment Partners Holdings N.V. boosted its holdings in shares of United Parcel Service by 3.3% during the third quarter. NN Investment Partners Holdings N.V. now owns 119,531 shares of the transportation company’s stock valued at $13,954,000 after acquiring an additional 3,802 shares during the period. Aviva PLC boosted its holdings in shares of United Parcel Service by 40.9% during the third quarter. Aviva PLC now owns 511,236 shares of the transportation company’s stock valued at $59,687,000 after acquiring an additional 148,470 shares during the period. Finally, First Bank & Trust boosted its holdings in shares of United Parcel Service by 26.3% during the third quarter. First Bank & Trust now owns 6,695 shares of the transportation company’s stock valued at $823,000 after acquiring an additional 1,395 shares during the period. Hedge funds and other institutional investors own 54.05% 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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