Stock Traders Buy High Volume of Call Options on United Parcel Service (NYSE:UPS)

United Parcel Service, Inc. (NYSE:UPS) was the target of unusually large options trading activity on Thursday. Investors purchased 34,148 call options on the stock. This represents an increase of approximately 33% compared to the typical daily volume of 25,672 call options.

Analyst Ratings Changes

UPS has been the subject of several research analyst reports. UBS Group cut their target price on shares of United Parcel Service from $125.00 to $123.00 and set a “buy” rating for the company in a research note on Wednesday, April 29th. Evercore dropped their price objective on shares of United Parcel Service from $115.00 to $113.00 and set an “in-line” rating on the stock in a report on Wednesday, April 22nd. Weiss Ratings lowered shares of United Parcel Service from a “hold (c)” rating to a “sell (d+)” rating in a research report on Friday, May 8th. Stephens raised United Parcel Service to a “strong-buy” rating in a research report on Wednesday. Finally, Susquehanna upped their price target on United Parcel Service from $116.00 to $118.00 and gave the company a “neutral” rating in a report on Wednesday, April 29th. Two analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, ten have given a Hold rating and four have given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $111.10.

Hedge Funds Weigh In On United Parcel Service

Hedge funds and other institutional investors have recently modified their holdings of the stock. Norges Bank bought a new stake in United Parcel Service in the fourth quarter valued at $902,446,000. Victory Capital Management Inc. boosted its stake in shares of United Parcel Service by 72.9% in the 4th quarter. Victory Capital Management Inc. now owns 13,818,314 shares of the transportation company’s stock valued at $1,370,639,000 after purchasing an additional 5,826,824 shares in the last quarter. AQR Capital Management LLC grew its holdings in shares of United Parcel Service by 175.7% in the 4th quarter. AQR Capital Management LLC now owns 5,200,135 shares of the transportation company’s stock worth $515,801,000 after purchasing an additional 3,314,166 shares during the last quarter. Pacer Advisors Inc. grew its holdings in shares of United Parcel Service by 507.8% in the 4th quarter. Pacer Advisors Inc. now owns 3,244,234 shares of the transportation company’s stock worth $321,796,000 after purchasing an additional 2,710,470 shares during the last quarter. Finally, Bank of America Corp DE increased its position in shares of United Parcel Service by 23.3% during the 1st quarter. Bank of America Corp DE now owns 9,728,123 shares of the transportation company’s stock worth $957,053,000 after purchasing an additional 1,836,651 shares in the last quarter. Institutional investors own 60.26% of the company’s stock.

Key Headlines Impacting United Parcel Service

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

• Positive Sentiment: Citigroup raised its price target on UPS to $132 and reiterated a buy rating, while Stephens upgraded the stock to strong-buy, signaling Wall Street sees more upside. Article Title
• Positive Sentiment: UPS was added to the Russell 1000 Value Defensive and Russell 1000 Defensive indexes, which can support demand from index-focused investors and highlight the stock’s defensive appeal. Article Title
• Positive Sentiment: Unusually heavy call option buying suggests traders are positioning for continued gains in UPS shares.
• Positive Sentiment: Several articles pointed to UPS’s strong earnings-beat history and growing investor attention ahead of the next quarterly report, reinforcing expectations for another solid print. Article Title
• Neutral Sentiment: UPS is reshaping its network, likely as part of ongoing operational efficiency efforts, but the article did not indicate an immediate material financial impact. Article Title
• Neutral Sentiment: UPS and FedEx remaining top logistics companies by market cap is a reminder of the company’s scale, but this is more a sector ranking than a stock-moving catalyst. Article Title
• Negative Sentiment: The U.S. Postal Service Inspector General flagged UPS’s air cargo contract with USPS, urging a re-evaluation over volume-guarantee risks and even possible termination if issues are not addressed, which adds uncertainty around parcel volumes and contract revenue. Article Title

United Parcel Service Price Performance

Shares of UPS stock traded up $1.88 during mid-day trading on Friday, reaching $112.61. The company’s stock had a trading volume of 3,408,694 shares, compared to its average volume of 4,506,363. The firm’s 50-day moving average is $105.35 and its two-hundred day moving average is $105.59. The company has a market cap of $95.72 billion, a P/E ratio of 18.22, a PEG ratio of 1.76 and a beta of 1.05. United Parcel Service has a 1-year low of $82.00 and a 1-year high of $122.41. The company has a debt-to-equity ratio of 1.50, a quick ratio of 1.21 and a current ratio of 1.21.

United Parcel Service (NYSE:UPS) last posted its earnings results on Tuesday, April 28th. The transportation company reported $1.07 earnings per share for the quarter, beating analysts’ consensus estimates of $1.02 by $0.05. United Parcel Service had a net margin of 5.94% and a return on equity of 35.95%. The business had revenue of $21.20 billion for the quarter, compared to analysts’ expectations of $20.99 billion. During the same quarter in the previous year, the firm posted $1.49 earnings per share. The firm’s revenue for the quarter was down 1.4% on a year-over-year basis. On average, research analysts predict that United Parcel Service will post 7.11 earnings per share for the current year.

United Parcel Service Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, June 4th. Stockholders of record on Monday, May 18th were paid a $1.64 dividend. This represents a $6.56 annualized dividend and a dividend yield of 5.8%. The ex-dividend date was Monday, May 18th. United Parcel Service’s dividend payout ratio is currently 106.15%.

United Parcel Service Company Profile

United Parcel Service (NYSE: UPS) is a global package delivery and supply chain management company that provides a broad range of transportation, logistics and e-commerce services. Its core business centers on small-package delivery and last-mile distribution for business and individual customers, supported by a network of ground transportation, air cargo operations (UPS Airlines) and sorting facilities. In addition to parcel delivery, UPS offers freight transportation, contract logistics, warehousing, customs brokerage and reverse-logistics solutions designed to support domestic and international commerce.

The company traces its roots to 1907 when it began as a small messenger service in the United States and later evolved into the United Parcel Service.