United Parcel Service Inc. (UPS): Technicals Say You should Hold

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United Parcel Service Inc. (NYSE:UPS) saw a downside of -0.22% to close Tuesday at $167.40 after subtracting -$0.37 on the day. The 5-day average trading volume is 3,656,160 shares of the company’s common stock. It has gained $170.65 in the past week and touched a new high 2 times within the past 5 days. An average of 3,192,810 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 3,194,658.

UPS’s 1-month performance is 2.64% or $5.86 on its low of $154.87 reached on 10/13/22. The company’s shares have touched a 52-week low of $154.87 and high of $233.72, with the stock’s rally to the 52-week high happening on 02/01/22. YTD, UPS has lost -21.90% or -$46.94 and has reached a new high 4 times. However, the current price is down -28.38% from the 52-week high price.


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Insider Transactions

UPS stock investors last saw insider trading activity on Aug 11.Gutmann Kathleen M. (Pres Intl, Healthcare and SCS) most recently sold 21,307 shares at $204.51 per share on Aug 11. This transaction cost the insider $4,357,435. Chief Marketing Officer, WARREN KEVIN M, sold 23,366 shares at a price of $193.31 on Aug 02. Then, on May 18, President, US Operations Cesarone Nando sold 19,292 shares at a price of $179.23 per share. This transaction amounted to $3,457,697.

Valuation Metrics

UPS stock has a beta of 1.10. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 1.43 while the price-to-book (PB) in the most recent quarter is 8.98, with the price to cash flow ratio at 20.16.

United Parcel Service Inc.’s quick ratio for the period ended June 29 was 1.50, with the current ratio over the same period at 1.50. As well, the company’s long term debt to equity for the quarter ending June 29 was 1.10, while the total debt to equity was 1.26. . In terms of profitability, the gross margin trailing 12 months is 75.70%. The firm’s gross profit as reported stood at $71.94 billion against revenue of $97.29 billion.

Earnings Surprise

For the quarterly period ending June 29 this year, United Parcel Service Inc.’s cash and short-term investments amounted to $336.0 million against total debt of $24.1 billion. Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 6.07% to $2.85 billion, while revenue of $2.66 billion was 6.56% off the previous quarter. Analysts expected UPS to announce $3.16 per share in earnings in its latest quarter, but it posted $3.29, representing a 4.10% surprise. EBITDA for the quarter stood at more than $4.3 billion. UPS stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 53.78 billion, with total debt at $24.1 billion. Shareholders hold equity totaling $868.67 million.

Let’s look briefly at United Parcel Service Inc. (UPS) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 01 November was 52.55% to suggest the stock is trending Neutral, with historical volatility in this time period at 24.76%.

The stock’s 5-day moving average is $167.56, reflecting a +0.24% or $0.40 change from its current price. UPS is currently trading -0.88% above its 20-day SMA, -5.18% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -18.90% and SMA200 by-18.95%.

Stochastic %K and %D was 63.10% and 62.77% and the average true range (ATR) pointed at 4.92. The RSI (14) points at 48.21%, while the 14-day stochastic is at 62.87% with the period’s ATR at 4.86. The stock’s 9-day MACD Oscillator is pointing at 0.90 and 1.61 on the 14-day charts.

Analyst Ratings

Analysts offering their rating for UPS stock have a consensus rating for the stock as Overweight. Currently, 2 brokerage advisors rate UPS as a “sell,”, while 14 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 2 rates the stock as overweight while 13 have offered a “buy” rating.

What is UPS’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $100.00 and a high of $251.00, with their median price target at $196.00. Looking at these predictions, the average price target given by analysts is for United Parcel Service Inc. (UPS) stock is $192.82.

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