Citigroup Has Lowered Expectations for United Parcel Service (NYSE:UPS) Stock Price

Key Points

• Citigroup lowered its UPS price target to $122 from $132 while maintaining a “buy” rating, implying approximately 32% upside from the reported closing price.
• UPS reported quarterly revenue of $22.83 billion and adjusted earnings of $1.76 per share, beating analyst expectations, with revenue rising 7.6% year over year.
• Analyst sentiment is mixed: the consensus rating is “Hold” with an average target of $115.87, while UPS shares recently traded at $92.40, below their 50-day and 200-day moving averages.

United Parcel Service (NYSE:UPS - Get Free Report) had its target price dropped by Citigroup from $132.00 to $122.00 in a note issued to investors on Wednesday, Benzinga reports. The firm currently has a "buy" rating on the transportation company's stock. Citigroup's target price points to a potential upside of 32.04% from the company's previous close.

UPS has been the subject of several other research reports. UBS Group raised their target price on United Parcel Service from $123.00 to $124.00 and gave the stock a "buy" rating in a research report on Wednesday, July 29th. Weiss Ratings upgraded United Parcel Service from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, August 17th. BMO Capital Markets lifted their target price on United Parcel Service from $110.00 to $115.00 and gave the company a "market perform" rating in a research note on Wednesday, July 29th. The Goldman Sachs Group upped 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. Finally, Bank of America decreased their price target on shares of United Parcel Service from $115.00 to $108.00 and set a "neutral" rating for the company in a report on Monday, September 21st. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, eleven have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $115.87.

United Parcel Service Price Performance

NYSE UPS traded down $0.71 on Wednesday, reaching $92.40. The company's stock had a trading volume of 3,477,099 shares, compared to its average volume of 5,654,642. The firm's 50 day moving average is $101.05 and its two-hundred day moving average is $103.69. The stock has a market cap of $78.61 billion, a PE ratio of 17.16, a PEG ratio of 1.71 and a beta of 1.07. The company has a debt-to-equity ratio of 1.58, a quick ratio of 1.18 and a current ratio of 1.18. United Parcel Service has a twelve month low of $82.00 and a twelve month high of $122.41.

United Parcel Service (NYSE:UPS - Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The transportation company reported $1.76 earnings per share (EPS) for the quarter, beating the consensus estimate 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 company 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 company earned $1.55 earnings per share. The firm's revenue was up 7.6% on a year-over-year basis. United Parcel Service has set its FY 2026 guidance at 7.220-7.220 EPS. As a group, sell-side analysts predict that United Parcel Service will post 7.21 EPS for the current year.

Hedge Funds Weigh In On United Parcel Service

Several institutional investors have recently bought and sold shares of the stock. Legacy Wealth Managment LLC ID boosted its position in United Parcel Service by 48.6% during the first quarter. Legacy Wealth Managment LLC ID now owns 309 shares of the transportation company's stock worth $30,000 after purchasing an additional 101 shares during the period. Markowski Investments acquired a new stake in shares of United Parcel Service in the second quarter worth $30,000. Allied Private Wealth LLC bought a new stake in shares of United Parcel Service during the 2nd quarter worth $34,000. Grove Bank & Trust grew its stake in United Parcel Service by 49.8% in the 2nd quarter. Grove Bank & Trust now owns 379 shares of the transportation company's stock valued at $41,000 after buying an additional 126 shares during the last quarter. Finally, Community Financial Services Group LLC grew its stake in United Parcel Service by 170.1% in the 2nd quarter. Community Financial Services Group LLC now owns 370 shares of the transportation company's stock valued at $41,000 after buying an additional 233 shares during the last quarter. 60.26% of the stock is currently owned by institutional investors.

United Parcel Service News Roundup

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

• Positive Sentiment: Truist Financial maintained a “buy” rating while lowering its price target to $115 from $130, implying substantial potential upside from recent levels. Truist lowers UPS price target while maintaining buy rating
• Positive Sentiment: Citigroup also retained a “buy” rating and reduced its target to $122 from $132 ahead of UPS’s October 27 third-quarter earnings report. The continued buy ratings suggest analysts see valuation support despite near-term caution. Citigroup adjusts UPS price target
• Positive Sentiment: UPS is expanding holiday shipping options, including more precise RFID-powered tracking, enhanced package protection and Secure Commerce tools covering insurance, shipment protection and risk monitoring. These offerings may improve customer retention and increase the value of UPS’s logistics network. UPS expands seasonal workforce and shipping services
• Neutral Sentiment: UPS plans to hire approximately 100,000 seasonal workers for the 2026 peak season. The hiring supports holiday service capacity, although it is below the 110,000 seasonal hires in 2025 and 125,000 in 2024, reflecting ongoing workforce reductions and facility closures. UPS seasonal hiring plans
• Negative Sentiment: Analysts and commentators continue to flag UPS’s roughly 7% dividend yield as a potential warning sign, citing questions about the cash-flow coverage of the payout. Dividend sustainability concerns could weigh on income-focused investors. Concerns about UPS dividend sustainability
• Negative Sentiment: The lower price targets from Truist and Citi indicate reduced expectations, even though both firms remain bullish. Coverage also highlights pressure from weaker recent share performance and broader concerns about UPS’s growth and risk profile ahead of earnings. Risks facing UPS 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.

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