Standpoint Research Downgrade United Parcel Service Inc. [UPS]. What else is Wall St. saying?

United Parcel Service Inc. [NYSE: UPS] loss -0.19% or -0.31 points to close at $159.99 with a heavy trading volume of 2606620 shares. The company report on August 14, 2020 that ATTENTION UPS EMPLOYEES WITH MERRILL LYNCH ACCOUNTS: KlaymanToskes Continues to Investigate Claims for UPS Employees with Losses from Unsuitable Covered Call Writing Strategies.

KlaymanToskes (“KT”) continues to investigate and pursue FINRA arbitration claims against Merrill Lynch on behalf of UPS (NYSE: UPS) current and former employees for losses sustained from an unsuitable recommendation to employ a covered call writing strategy.

Many UPS employees were solicited to invest with Merrill Lynch after UPS stock went public in 1999. Merrill Lynch and its financial advisors recommended to many UPS employees a covered call options writing strategy, sometimes recommending the Rampart Options Management Services Program (“Rampart”) to facilitate the strategy that would generate income to help cover the cost of the UPS employees’ hypo loans. The problem with this call writing strategy was that when the UPS stock increased in price above the option strike price, in many cases, it forced the sale of UPS shares and/or required that the UPS shareholder buy back their stock at a substantial cost.

It opened the trading session at $160.39, the shares rose to $161.345 and dropped to $159.05, the range by which the price of stock traded the whole day. The daily chart for UPS points out that the company has recorded 49.86% gains over the past six months. However, it is still -95.11% lower than its most recent low trading price.

If we look at the average trading volume of 4.59M shares, UPS reached to a volume of 2606620 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about United Parcel Service Inc. [UPS]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for UPS shares is $144.61 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on UPS stock is a recommendation set at 2.50. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Standpoint Research have made an estimate for United Parcel Service Inc. shares, keeping their opinion on the stock as Hold, with their previous recommendation back on August 03, 2020. While these analysts kept the previous recommendation, Cowen raised their target price from $101 to $114. The new note on the price target was released on July 27, 2020, representing the official price target for United Parcel Service Inc. stock. Previously, the target price had yet another drop from $95 to $85, while BMO Capital Markets kept a Underperform rating on UPS stock.

The Average True Range (ATR) for United Parcel Service Inc. is set at 4.03, with the Price to Sales ratio for UPS stock in the period of the last 12 months amounting to 1.77. The Price to Book ratio for the last quarter was 31.74, with the Price to Cash per share for the same quarter was set at 10.77. Price to Free Cash Flow for UPS in the course of the last twelve months was 90.23 with Quick ratio for the last quarter at 1.20.

Trading performance analysis for UPS stock

United Parcel Service Inc. [UPS] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 2.66. With this latest performance, UPS shares gained by 35.18% in over the last four-week period, additionally plugging by 49.86% over the last 6 months – not to mention a rise of 36.99% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for UPS stock in for the last two-week period is set at 82.77, with the RSI for the last a single of trading hit 82.52, and the three-weeks RSI is set at 80.98 for United Parcel Service Inc. [UPS]. The present Moving Average for the last 50 days of trading for this stock 123.88, while it was recorded at 159.62 for the last single week of trading, and 110.49 for the last 200 days.

United Parcel Service Inc. [UPS]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and United Parcel Service Inc. [UPS] shares currently have an operating margin of +10.66 and a Gross Margin at +21.77. United Parcel Service Inc.’s Net Margin is presently recorded at +6.01.

Return on Total Capital for UPS is now 27.53, given the latest momentum, and Return on Invested Capital for the company is 17.61. Return on Equity for this stock inclined to 141.22, with Return on Assets sitting at 8.23. When it comes to the capital structure of this company, United Parcel Service Inc. [UPS] has a Total Debt to Total Equity ratio set at 862.17. Additionally, UPS Total Debt to Total Capital is recorded at 89.61, with Total Debt to Total Assets ending up at 48.68. Long-Term Debt to Equity for the company is recorded at 741.02, with the Long-Term Debt to Total Capital now at 77.02.

Reflecting on the efficiency of the workforce at the company, United Parcel Service Inc. [UPS] managed to generate an average of $8,970 per employee. Receivables Turnover for the company is 7.35 with a Total Asset Turnover recorded at a value of 1.37.United Parcel Service Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.20.

United Parcel Service Inc. [UPS]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, United Parcel Service Inc. posted 2.07/share EPS, while the average EPS was predicted by analysts to be reported at 2.06/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 0.50%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for UPS. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for United Parcel Service Inc. go to 5.90%.

An analysis of insider ownership at United Parcel Service Inc. [UPS]

Positions in United Parcel Service Inc. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 835 institutional holders increased their position in United Parcel Service Inc. [NYSE:UPS] by around 29,927,370 shares. Additionally, 722 investors decreased positions by around 20,561,653 shares, while 180 investors held positions by with 439,556,226 shares. The mentioned changes placed institutional holdings at 490,045,249 shares, according to the latest SEC report filing. UPS stock had 149 new institutional investments in for a total of 2,306,979 shares, while 97 institutional investors sold positions of 2,271,204 shares during the same period.

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