What Are The Risk Factors For United Parcel Service Inc. (UPS)?


As of Friday close, United Parcel Service Inc.’s (NYSE:UPS) stock was down -$1.13, moving down -0.60 percent to $186.79. The average number of shares traded per day over the past five days has been 7,777,860 shares. 4 times new highs have been achieved over the past 5 days, with a $5.25 gain in that time frame. In the last twenty days, the average volume was 4,000,810, while in the previous 50 days, it was 3,252,762.

Since last month, UPS stock retreated -0.03%. Shares of the company fell to $176.09 on 02/22/23, the lowest level in the past month. A 52-week high of $223.97 was reached on 02/02/23 after having rallying from a 52-week low of $154.87. Since the beginning of this year, UPS’s stock price has risen by 7.45% or $12.95, and marked a new high 8 times. However, the stock has declined by -16.60% since its 52-week high.

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UPS stock investors should be aware that United Parcel Service Inc. (UPS) stock had its last reported insider trading activity 25 days ago on Feb 21. Lane Laura J, the CHF Crp Aff, Com & Sustain Off of the company, disposed of 14,617 shares for $178.16 on Feb 21. It resulted in a $2,604,143 divestment by the insider. Brothers Norman M. Jr sold 20,724 shares at an average price of $182.26 on Feb 17. The insider now owns 0 shares following the transaction. On Feb 17, Chief Financial Officer Newman Brian sold 19,000 shares at $182.46 apiece. The transaction was valued at $3,466,770.

Valuation Metrics

Right now, United Parcel Service Inc. (UPS) has a P/E ratio of about 14.14. The stock’s beta is 1.08. Besides these, the trailing price-to-sales (P/S) ratio of 1.61, the price-to-book (PB) ratio of 8.17, and the price-to-cash flow ratio of 38.28 may also be considered.

The latest dividend of $1.62 per share was paid out, which is 6.58% more than last year’s $1.52. On Tuesday January 31 2023, a $0.10 dividend increase was announced.

Financial Health

In the three months ended December 30, United Parcel Service Inc.’s quick ratio stood at 1.20, while its current ratio was 1.20, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending December 30 was 0.88, and the total debt-to-equity ratio was 0.99. On the profitability front, the trailing twelve-month gross margin is 76.40% percent. In the year ended December 30, operating margins totaled 13.00%. Based on annual data, UPS earned $74.15 billion in gross profit and brought in $100.34 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 24.90%. Return on equity (ROE) for the past 12 months was 67.50%.

In United Parcel Service Inc.’s quarter-end financial report for December 30, it reported total debt of $17.32 billion against cash and short-term investments of $1.99 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. UPS’s revenue fell -2.73% to $24.16 billion during the quarter, while net income inched up to $27.03 billion. While analysts expected United Parcel Service Inc. to report $3.59 quarterly earnings, the actual figure was $3.62 per share, beating the consensus estimate by 0.80%. The liabilities of United Parcel Service Inc. were 51.32 billion at the end of its most recent quarter ended December 30, and its total debt was $23.53 billion.

Technical Picture

This quick technical analysis looks at United Parcel Service Inc.’s (UPS) price momentum. With a historical volatility rate of 17.71%, the RSI 9-day stood at 59.21% on 17 March.

With respect to its five-day moving average, the current United Parcel Service Inc. price is up by +2.89% percent or $5.25. At present, UPS shares trade +0.67% above its 20-day simple moving average and +12.83% percent above its 100-day simple moving average. However, the stock is currently trading approximately +5.47% above its SMA50 and +2.49% above its SMA200.

Stochastic coefficient K was 73.34% and Stochastic coefficient D was 71.24%, while ATR was 4.47. Given the Stochastic reading of 62.49% for the 14-day period, the RSI (14) reading has been calculated as 56.51%. As of today, the MACD Oscillator reading stands at 2.10, while the 14-day reading stands at 2.01.

Analyst Ratings

United Parcel Service Inc. downgraded its rating on United Parcel Service Inc. (NYSE: UPS) to an Underperform in a note to investors on November 30, 2022. The analysts firm previously had a Neutral rating on the stock.


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