United Parcel Service (NYSE:UPS) Stock Falls 2.4% – Here’s Why

United Parcel Service, Inc. (NYSE:UPS)’s share price fell 2.4% on Friday. The company traded as low as $108.14 and last traded at $108.39. 6,357,243 shares were traded during mid-day trading, an increase of 13% from the average daily volume of 5,628,267 shares. The stock had previously closed at $111.04.

More United Parcel Service News

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

• Positive Sentiment: UPS declared a quarterly dividend of $1.64 per share, equivalent to $6.56 annually and a reported yield of about 5.9%. The payment is scheduled for December 3 for shareholders of record November 16. Earlier coverage also highlighted stronger results and higher full-year guidance, which may support investor confidence. Dividend and outlook coverage
• Neutral Sentiment: UPS appointed Shannon Eisenhardt, a former senior finance and operations executive at Reckitt and NIKE, to its board and Audit Committee. Her experience may strengthen financial oversight, though the appointment is not an immediate earnings catalyst. Board appointment coverage
• Neutral Sentiment: The company is hiring more than 1,000 seasonal workers in the Kansas City area. The recruitment supports holiday operations, but seasonal hiring alone offers limited evidence about broader demand and may bring additional costs. Kansas City seasonal hiring article
• Negative Sentiment: Recent coverage says investors questioned UPS’s margins and valuation after its third-quarter report. The stock’s initial reaction was negative despite roughly $22.9 billion in revenue, suggesting profitability concerns are offsetting the revenue result and positive outlook. Q3 margin concerns article

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on UPS shares. Sanford C. Bernstein lowered their price target on United Parcel Service from $131.00 to $127.00 and set an “outperform” rating for the company in a research report on Wednesday, October 21st. UBS Group raised their price objective on United Parcel Service from $124.00 to $125.00 and gave the stock a “buy” rating in a report on Wednesday, October 28th. Weiss Ratings raised United Parcel Service from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Monday, August 17th. Truist Financial boosted their target price on United Parcel Service from $115.00 to $120.00 and gave the stock a “buy” rating in a report on Wednesday, October 28th. Finally, Wall Street Zen upgraded United Parcel Service from a “hold” rating to a “buy” rating in a report on Saturday, October 31st. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $118.45.

United Parcel Service Stock Performance

The company has a current ratio of 1.24, a quick ratio of 1.18 and a debt-to-equity ratio of 1.67. The firm has a market cap of $92.22 billion, a PE ratio of 20.84, a P/E/G ratio of 1.95 and a beta of 0.98. The stock’s 50 day moving average price is $99.81 and its 200 day moving average price is $104.71.

United Parcel Service (NYSE:UPS) last announced its quarterly earnings results on Wednesday, November 4th. The transportation company reported $1.69 earnings per share for the quarter. United Parcel Service had a net margin of 4.84% and a return on equity of 37.78%. The firm had revenue of $22.85 billion during the quarter. As a group, equities analysts forecast that United Parcel Service, Inc. will post 7.28 earnings per share for the current fiscal year.

United Parcel Service Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 3rd. Stockholders of record on Monday, November 16th will be given a $1.64 dividend. The ex-dividend date of this dividend is Monday, November 16th. This represents a $6.56 annualized dividend and a dividend yield of 6.1%. United Parcel Service’s dividend payout ratio is presently 126.15%.

Insider Buying and Selling at United Parcel Service

In other news, insider Matthew Guffey sold 8,318 shares of the stock in a transaction dated Wednesday, October 28th. The stock was sold at an average price of $105.39, for a total value of $876,634.02. Following the completion of the sale, the insider owned 271 shares in the company, valued at approximately $28,560.69. This trade represents a 96.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.19% of the stock is owned by insiders.

Hedge Funds Weigh In On United Parcel Service

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Pictet Asset Management Holding SA boosted its stake in shares of United Parcel Service by 2.1% in the third quarter. Pictet Asset Management Holding SA now owns 312,924 shares of the transportation company’s stock valued at $29,240,000 after purchasing an additional 6,289 shares during the period. Leelyn Smith LLC grew its holdings in United Parcel Service by 2.8% during the 3rd quarter. Leelyn Smith LLC now owns 29,829 shares of the transportation company’s stock valued at $2,787,000 after purchasing an additional 803 shares in the last quarter. Verus Capital Partners LLC increased its stake in United Parcel Service by 22.8% during the 3rd quarter. Verus Capital Partners LLC now owns 3,437 shares of the transportation company’s stock worth $321,000 after buying an additional 639 shares during the period. International Assets Investment Management LLC increased its stake in United Parcel Service by 10.2% during the 3rd quarter. International Assets Investment Management LLC now owns 115,000 shares of the transportation company’s stock worth $11,050,000 after buying an additional 10,633 shares during the period. Finally, Cowa LLC lifted its holdings in United Parcel Service by 11.9% in the 3rd quarter. Cowa LLC now owns 26,466 shares of the transportation company’s stock worth $2,473,000 after buying an additional 2,820 shares in the last quarter. 60.26% of the stock is owned by institutional investors and hedge funds.

About United Parcel Service

United Parcel Service, Inc (UPS) is a global package delivery and logistics company. Its services include domestic and international shipping, air and ground delivery, freight forwarding, customs brokerage, and supply chain management.

UPS also provides solutions for businesses, including warehousing, inventory management, healthcare logistics, and returns processing. Its network serves customers in more than 200 countries and territories.

Founded in Seattle in 1907 as the American Messenger Company, UPS is headquartered in Atlanta, Georgia.