United Parcel Service, Inc. (UPS) – What Are Investment Firms Thinking About This Stock?

United Parcel Service, Inc. (NYSE:UPS) has earned an average recommendation of “Hold” from the twenty-six ratings firms that are covering the firm, Marketbeat Ratings reports. Three research analysts have rated the stock with a sell rating, eleven have given a hold rating, eleven have issued a buy rating and one has given a strong buy rating to the company. The average 12-month price target among brokerages that have updated their coverage on the stock in the last year is $115.87.

Several analysts have recently commented on the stock. Susquehanna increased their price target on shares of United Parcel Service from $118.00 to $120.00 and gave the company a “neutral” rating in a research report on Wednesday, July 29th. Oppenheimer increased their price objective on shares of United Parcel Service from $115.00 to $117.00 and gave the stock an “outperform” rating in a report on Wednesday, July 29th. Stifel Nicolaus lifted their target price on United Parcel Service from $114.00 to $115.00 and gave the company a “buy” rating in a report on Wednesday, July 29th. Stephens decreased their price objective on shares of United Parcel Service from $135.00 to $130.00 and set an “overweight” rating for the company in a research note on Wednesday, July 29th. Finally, The Goldman Sachs Group raised their target price on United Parcel Service from $128.00 to $132.00 and gave the company a “buy” rating in a report on Wednesday, July 29th.

Institutional Investors Weigh In On United Parcel Service

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Bank of America Corp DE increased its stake in shares of United Parcel Service by 23.3% in the first quarter. Bank of America Corp DE now owns 9,728,123 shares of the transportation company’s stock worth $957,053,000 after buying an additional 1,836,651 shares during the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of United Parcel Service by 5.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 5,037,626 shares of the transportation company’s stock worth $495,411,000 after acquiring an additional 271,646 shares during the period. Bank of New York Mellon Corp raised its holdings in shares of United Parcel Service by 2.1% during the first quarter. Bank of New York Mellon Corp now owns 4,639,324 shares of the transportation company’s stock valued at $456,417,000 after buying an additional 97,582 shares during the last quarter. First Trust Advisors LP grew its stake in shares of United Parcel Service by 37.4% in the first quarter. First Trust Advisors LP now owns 3,631,133 shares of the transportation company’s stock worth $357,231,000 after purchasing an additional 988,442 shares in the last quarter. Finally, Pacer Advisors Inc. increased its stake in United Parcel Service by 8.2% during the 1st quarter. Pacer Advisors Inc. now owns 3,510,630 shares of the transportation company’s stock valued at $345,376,000 after buying an additional 266,396 shares during the period. 60.26% of the stock is currently owned by hedge funds and other institutional investors.

United Parcel Service Stock Down 0.4%

Shares of NYSE UPS opened at $97.44 on Tuesday. The firm has a 50-day moving average price of $99.38 and a 200 day moving average price of $103.54. The stock has a market capitalization of $82.90 billion, a price-to-earnings ratio of 18.11, a price-to-earnings-growth ratio of 1.80 and a beta of 1.07. The company has a quick ratio of 1.18, a current ratio of 1.18 and a debt-to-equity ratio of 1.58. United Parcel Service has a 52 week low of $85.24 and a 52 week high of $122.41.

United Parcel Service (NYSE:UPS) last released its quarterly earnings results on Tuesday, July 28th. The transportation company reported $1.76 earnings per share for the quarter, topping analysts’ consensus estimates of $1.65 by $0.11. United Parcel Service had a return on equity of 37.50% and a net margin of 5.08%. The business had revenue of $22.83 billion for the quarter, compared to analysts’ expectations of $21.86 billion. During the same quarter in the prior year, the firm posted $1.55 EPS. The company’s revenue was up 7.6% compared to the same quarter last year. United Parcel Service has set its FY 2026 guidance at 7.220-7.220 EPS. Equities research analysts anticipate that United Parcel Service will post 7.19 EPS for the current fiscal year.

United Parcel Service Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 3rd. Investors of record on Monday, August 17th were paid a dividend of $1.64 per share. The ex-dividend date of this dividend was Monday, August 17th. This represents a $6.56 annualized dividend and a yield of 6.7%. United Parcel Service’s payout ratio is 121.93%.

Trending Headlines about United Parcel Service

Here are the key news stories impacting United Parcel Service this week:

• Positive Sentiment: UPS opened an approximately $80 million air cargo and package hub at Clark International Airport in the Philippines. The larger facility is intended to improve Asia connectivity, increase service capacity and support global trade, with the company hiring about 600 workers. Larger UPS air hub in Philippines boosts Asia service levels
• Positive Sentiment: UPS is included among transportation companies viewed as likely to beat earnings estimates this season. The bullish case is supported by its recent quarterly performance, when revenue and earnings exceeded consensus expectations, and by analyst expectations for earnings growth. 4 Transportation Stocks Likely to Deliver an Earnings Beat This Season
• Positive Sentiment: A bullish analysis points to double-digit adjusted EPS growth, margin expansion, network optimization using artificial intelligence and a strategic focus on higher-margin healthcare shipments. It also cites company guidance for more than $91 billion in annual revenue and about $8.6 billion in adjusted operating profit. UPS: Fuel Prices Don’t Change The Business
• Neutral Sentiment: Unusually high call-option activity—32,492 contracts, 55% above typical daily volume—signals increased speculative interest, but it does not establish a lasting bullish trend. United Parcel Service options activity
• Negative Sentiment: A bearish analysis rates UPS a sell, citing thin free-cash-flow coverage of its roughly $5.4 billion dividend, high leverage, low margins, wage and diesel inflation, and potentially more expensive debt refinancing. These risks raise questions about dividend sustainability and profitability. UPS: The Dividend Parcel Could Arrive Broken
• Negative Sentiment: Other commentary warns UPS could miss earnings estimates despite appearing potentially undervalued, keeping investors focused on whether operational improvements can offset cost pressures and protect the company’s high-yield dividend. Prediction: UPS Will Miss Estimates

United Parcel Service Company Profile

United Parcel Service, Inc (NYSE: UPS) is a global package delivery and logistics company. Its services include the transportation and delivery of packages and freight, time-definite express delivery, supply chain management, customs brokerage, and logistics consulting. UPS serves businesses and consumers through ground, air, and international delivery networks.

The company operates across the United States and in international markets throughout Europe, Asia-Pacific, Latin America, Canada, and other regions.