United Parcel Service (NYSE:UPS) Stock Jumps 2.2% – Still a Buy?

United Parcel Service, Inc. (NYSE:UPS) shares rose 2.2% during mid-day trading on Thursday. The stock traded as high as $98.37 and last traded at $97.8730. Approximately 5,898,735 shares were traded during trading, an increase of 5% from the average session volume of 5,634,522 shares. The stock had previously closed at $95.78.

United Parcel Service News Summary

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

Analyst Ratings Changes

Several equities analysts have weighed in on the company. The Goldman Sachs Group lifted their target price on United Parcel Service from $128.00 to $132.00 and gave the company a “buy” rating in a research report on Wednesday, July 29th. Raymond James Financial boosted their price target on shares of United Parcel Service from $127.00 to $131.00 and gave the stock a “strong-buy” rating in a research note on Wednesday, July 29th. Susquehanna increased their price target on shares of United Parcel Service from $118.00 to $120.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 29th. JPMorgan Chase & Co. lowered their price objective on shares of United Parcel Service from $118.00 to $115.00 and set a “neutral” rating for the company in a research note on Wednesday, July 29th. Finally, Stifel Nicolaus lifted their price objective on shares of United Parcel Service from $114.00 to $115.00 and gave the company a “buy” rating in a report on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, eleven have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $115.87.

United Parcel Service Stock Down 0.4%

The firm has a market cap of $82.90 billion, a PE ratio of 18.11, a PEG ratio of 1.80 and a beta of 1.07. The company has a current ratio of 1.18, a quick ratio of 1.18 and a debt-to-equity ratio of 1.58. The firm has a 50 day moving average price of $99.38 and a 200-day moving average price of $103.54.

United Parcel Service (NYSE:UPS) last released its 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 net margin of 5.08% and a return on equity of 37.50%. The firm had revenue of $22.83 billion for the quarter, compared to analyst estimates of $21.86 billion. During the same period in the prior year, the firm earned $1.55 earnings per share. The business’s quarterly 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. Research analysts forecast that United Parcel Service, Inc. will post 7.19 EPS for the current fiscal year.

United Parcel Service Dividend Announcement

The firm also recently announced 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 was Monday, August 17th. This represents a $6.56 annualized dividend and a yield of 6.7%. United Parcel Service’s payout ratio is presently 121.93%.

Institutional Trading of United Parcel Service

Institutional investors have recently modified their holdings of the stock. Sigma Planning Corp boosted its holdings in United Parcel Service by 37.1% in the first quarter. Sigma Planning Corp now owns 36,722 shares of the transportation company’s stock valued at $3,613,000 after acquiring an additional 9,941 shares during the last quarter. First Trust Advisors LP increased its stake in United Parcel Service by 37.4% during the first quarter. First Trust Advisors LP now owns 3,631,133 shares of the transportation company’s stock worth $357,231,000 after acquiring an additional 988,442 shares during the last quarter. Candriam S.C.A. raised its holdings in shares of United Parcel Service by 29.6% in the 1st quarter. Candriam S.C.A. now owns 91,015 shares of the transportation company’s stock worth $8,954,000 after purchasing an additional 20,791 shares during the period. National Pension Service raised its holdings in shares of United Parcel Service by 1.5% in the 2nd quarter. National Pension Service now owns 2,379,189 shares of the transportation company’s stock worth $255,763,000 after purchasing an additional 36,099 shares during the period. Finally, D.A. Davidson & CO. lifted its stake in shares of United Parcel Service by 24.9% in the 1st quarter. D.A. Davidson & CO. now owns 161,007 shares of the transportation company’s stock valued at $15,840,000 after purchasing an additional 32,090 shares in the last quarter. Hedge funds and other institutional investors own 60.26% of the company’s stock.

United Parcel Service Company Profile

United Parcel Service, Inc (NYSE: UPS) is a global logistics and package delivery company that provides transportation and supply chain management services to businesses and consumers. Its operations include the pickup, transportation and delivery of packages, documents and freight through ground, air and international networks.

UPS also offers logistics and supply chain solutions, including warehousing, distribution, customs brokerage, contract logistics, returns management and specialized services for healthcare and other industries.