Why Investors Should Avoid UPS Shares This Holiday Season

[cheryl]

Why Investors Should Avoid UPS Shares This Holiday Season - Seeking Alpha

Summary

• United Parcel Service has used its position as the largest transportation and logistics company in North America to generate staggering returns on its equity and invested capital.
• While the firm's balance sheet contains a fair amount of debt, the stock pays an above-average yield and its dividend growth track record is strong.
• However, with analysts expecting a deceleration in UPS's future earnings growth, the DRAG framework suggests its shares are currently overvalued by close to 15%.

 

[Returntosender]

United Parcel Service (NYSE:UPS) CFO Kurt P. Kuehn sold 4,098 shares of the company’s stock on the open market in a transaction dated Friday, November 21st. The shares were sold at an average price of $107.47, for a total transaction of $440,412.0

 

[UpstateNYUPSer(Ret)]

United Parcel Service (NYSE:UPS) CFO Kurt P. Kuehn sold 4,098 shares of the company’s stock on the open market in a transaction dated Friday, November 21st. The shares were sold at an average price of $107.47, for a total transaction of $440,412.0

Yeah....so.....what is your point? Should members of upper management not be allowed to make a profit on their investments (providing they don't use inside information to do so)?

 

[Returntosender]

Yeah....so.....what is your point? Should members of upper management not be allowed to make a profit on their investments (providing they don't use inside information to do so)?

.Well if other top management shareholders sell, then institutional investors sell. You think they selling taking profits and buy back at lower price? Or they take profits and invest in something else that has more potential. Or they have inside info?

 

[UpstateNYUPSer(Ret)]

.Well if other top management shareholders sell, then institutional investors sell. You think they selling taking profits and buy back at lower price? Or they take profits and invest in something else that has more potential. Or they have inside info?

Not necessarily.

Without knowing his cost basis in the stock or if there were any changes in his personal life, it would be pure speculation on our part as to why he chose to sell.