Wall Street Zen Downgrades United Parcel Service (NYSE:UPS) to Hold

Key Points

• Wall Street Zen downgraded UPS from “Buy” to “Hold,” while the broader analyst consensus is also “Hold” with a $117.41 average price target.
• UPS opened at $99.01, below its 50-day and 200-day moving averages, despite reporting quarterly earnings of $1.76 per share and revenue of $22.83 billion, both above expectations.
• Institutional ownership remains substantial at 60.26%, with several major investors—including Norges Bank, Victory Capital, and Pacer Advisors—recently increasing their UPS positions.

United Parcel Service (NYSE:UPS - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Saturday, Wall Street Zen reports.

A number of other equities research analysts have also weighed in on the company. UBS Group lifted their target price on United Parcel Service from $123.00 to $124.00 and gave the company a "buy" rating in a research report on Wednesday, July 29th. Stifel Nicolaus increased their price target on United Parcel Service from $114.00 to $115.00 and gave the stock a "buy" rating in a research report on Wednesday, July 29th. Sanford C. Bernstein raised their price target on United Parcel Service from $130.00 to $133.00 and gave the company an "outperform" rating in a research note on Tuesday, July 21st. Oppenheimer lifted their price objective on United Parcel Service from $115.00 to $117.00 and gave the company an "outperform" rating in a report on Wednesday, July 29th. Finally, Citizens Jmp started coverage on shares of United Parcel Service in a report on Wednesday, July 15th. They set a "market perform" rating on the stock. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $117.41.

United Parcel Service Price Performance

United Parcel Service stock opened at $99.01 on Friday. The firm has a 50-day moving average price of $105.85 and a 200-day moving average price of $104.41. The firm has a market capitalization of $84.23 billion, a PE ratio of 18.40, a price-to-earnings-growth ratio of 1.79 and a beta of 1.06. The company has a current ratio of 1.18, a quick ratio of 1.18 and a debt-to-equity ratio of 1.58. United Parcel Service has a 12-month low of $82.00 and a 12-month high of $122.41.

United Parcel Service (NYSE:UPS - Get Free Report) last released its earnings results on Tuesday, July 28th. The transportation company reported $1.76 earnings per share for the quarter, topping 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 business had revenue of $22.83 billion during the quarter, compared to the consensus estimate of $21.86 billion. During the same period last year, the company earned $1.55 earnings per share. The business's revenue for the quarter 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. As a group, equities research analysts forecast that United Parcel Service will post 7.22 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in UPS. Norges Bank acquired a new stake in United Parcel Service during the 4th quarter worth $902,446,000. Victory Capital Management Inc. raised its position in shares of United Parcel Service by 72.9% in the fourth quarter. Victory Capital Management Inc. now owns 13,818,314 shares of the transportation company's stock valued at $1,370,639,000 after buying an additional 5,826,824 shares during the last quarter. Pacer Advisors Inc. raised its position in shares of United Parcel Service by 507.8% in the fourth quarter. Pacer Advisors Inc. now owns 3,244,234 shares of the transportation company's stock valued at $321,796,000 after buying an additional 2,710,470 shares during the last quarter. Wellington Management Group LLP lifted its stake in shares of United Parcel Service by 262.7% in the second quarter. Wellington Management Group LLP now owns 3,046,707 shares of the transportation company's stock worth $327,521,000 after buying an additional 2,206,666 shares in the last quarter. Finally, Bank of America Corp DE lifted 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 in the last quarter. 60.26% of the stock is currently owned by hedge funds and other institutional investors.

About United Parcel Service

United Parcel Service, Inc NYSE: UPS is a global package delivery and logistics company that provides transportation, distribution and supply-chain services. Its offerings include time-definite delivery of packages and documents, ground and air transportation, international shipping, freight services, customs brokerage and logistics management.

UPS serves businesses and consumers in the United States and across international markets, connecting customers in more than 200 countries and territories.

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