United Parcel Service
the stock plummeted this year in the chaos of the coronavirus pandemic, but Carol Tome, the new CEO of the logistics giant, bought a large block of shares.
UPS stock (ticker: UPS) has lost 8.9% since the start of the year. First quarter results disappointed, even though sales exceeded expectations. Company drivers travel further and make more stops for low-margin home deliveries, hammering at margins.
Class A shares, which are not publicly traded, each have 10 votes, while UPS publicly traded shares each have one vote.
UPS declined to make Tome available to comment on its share purchase, and the company also declined to comment. Tome, who retired
(HD), chief financial officer last year, has served on the UPS board since 2003.
Credit Suisse analyst Allison M. Landry maintained a neutral rating on UPS stocks, lowered profit estimates and lowered price target after UPS results report released in late April from $ 101 to $ 101.
Tome could “come up with new strategic ideas / changes to help mitigate the impact of business growth on consumers,” and it would “be a positive catalyst for the title in the coming months,” she said. But “the company’s recent investments in network automation and improvement have not been enough to overcome a strongly negative mix change” for residential deliveries in the first quarter.
UPS stock is behind the wider market, as measured by
S&P 500 Index,
which has dropped by 1% since the start of the year.
Inside Scoop is a regular Barron report covering stock market transactions by business leaders and board members – supposedly insiders – as well as large shareholders, politicians and other figures. Due to their insider status, these investors are required to disclose market transactions with the Securities and Exchange Commission or other regulatory groups.
Write to Ed lin at [email protected] and follow @BarronsEdLin.