Robert W. Baird has recently reduced United Parcel Service Inc (UPS) stock to Neutral rating, as announced on January 31, 2025, according to Finviz. Earlier, on January 22, 2025, Evercore ISI had reiterated their previous stock rating, setting a price target of $147 for UPS stock. BofA Securities also raised Buy rating with a price target of $150. Additionally, Wolfe Research raised Outperform rating on January 8, 2025, with a target price of $147. BMO Capital Markets analysts, in their report published on December 10, 2024, also raised Outperform rating and set a price target of $155 for United Parcel Service Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
United Parcel Service Inc (UPS) Stock Trading Recap
On Friday, United Parcel Service Inc (UPS) stock saw a modest uptick, ending the day at $116.22 which represents a slight increase of $0.58 or 0.50% from the prior close of $115.64. The stock opened at $116.06 and touched a low of $115.66 during the day, reaching a high of $116.76. The volume of shares traded was 5.44 million falling short of the average volume of 5.53 million.
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UPS Stock Performance and Moving Averages
In recent trading, United Parcel Service Inc (UPS) stock price has shown some volatility, fluctuating 2.75% over the last five trades and -8.83% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -8.07%, and it has plunged by -10.70% in the previous three months. Currently, UPS is trading at -4.45%, -6.71%, and -12.09% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, UPS, a Industrials sector stock, is trading -26.88% below its 52-week high but remains 6.23% above its 52-week low. The Average True Range (ATR) (14 days) of 2.82 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
United Parcel Service Inc’s Profitability and Valuation Ratios
United Parcel Service Inc’s profitability metrics reveal financial health. The company currently boasts an operating margin of 9.53% and a profit margin of 6.36%, with a gross margin of -8.07%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, United Parcel Service Inc’s market capitalization stands at $99.18 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 17.21, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 13.13. Additionally, the Price-to-Sales Ratio is 1.09, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 5.88, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 14.38% of United Parcel Service Inc (UPS)’s shares, while financial institutions hold 60.55%.
Notable insider trades include Cesarone Nando, President, US Operations at United Parcel Service Inc (UPS), who sold 10000 shares on Nov 25 ’24, at $137.1 each, totaling $1.37 million. On Nov 25 ’24, Brothers Norman M. Jr, Chief Legal & Compliance Off, sold 7325 shares for $138.57 each, amounting to $1.02 million.
