Livförsäkringsbolaget Skandia Ömsesidigt, a Swedish mutual life insurance company, has reduced its holdings in United Parcel Service, Inc. (UPS) by 8.8% in the second quarter of this year. The company sold off 900 shares, leaving it with a total of 9,276 shares in the transportation company. This move suggests a potential shift in investment strategies for the insurance company.
According to the latest filing with the Securities and Exchange Commission, Livförsäkringsbolaget Skandia Ömsesidigt’s stake in United Parcel Service is valued at $1,662,000 as of September 15th. The decision to reduce holdings comes after UPS reported its second-quarter earnings results, which exceeded market expectations for earnings per share but fell short in terms of revenue.
UPS reported an EPS of $2.54 for the second quarter, surpassing analysts’ estimates of $2.49. However, the company’s revenue for the quarter was $22.10 billion, lower than the anticipated $23.04 billion. Despite the decrease in revenue, UPS maintained a strong financial performance with a return on equity of 51.28% and a net margin of 10.41%.
This quarter’s revenue marks a decline of 10.9% compared to the same period last year. UPS generated higher returns in the second quarter of the previous year with an EPS of $3.29. These recent developments have led to mixed sentiments among analysts regarding the stock’s performance.
Loop Capital downgraded UPS from a “buy” rating to a “hold” rating in August, while BMO Capital Markets raised its price objective from $180.00 to $190.00 and issued a “market perform” rating. Atlantic Securities initiated coverage with a “neutral” rating and set a price objective of $162.00, while Stifel Nicolaus increased its price target to $203.00. Citigroup, on the other hand, lowered its price target from $200.00 to $180.00.
Livförsäkringsbolaget Skandia Ömsesidigt’s reduction in holdings indicates a change in investment strategy. Meanwhile, UPS has attracted attention from notable investors who have either purchased new stakes or increased their positions in the company. These recent activities and developments suggest potential growth opportunities for United Parcel Service in the future.
With an average rating of “Hold” based on data from Bloomberg.com and a consensus price target of $187.30, investors and industry experts will continue to monitor future developments surrounding the company closely. UPS currently has a strong buy rating with a price target of $200.00.