United Parcel Service, Inc. (NYSE:UPS) Stock Has Average Price Target of $118.45

Key Points

• Analysts rate UPS “Hold” on average, with 25 firms split between 12 buy or strong-buy ratings, 11 holds and two sells; the average 12-month price target is $118.45.
• UPS reported quarterly revenue of $22.85 billion and earnings of $1.69 per share. It declared a $1.64 quarterly dividend, equivalent to $6.56 annually and a yield of about 6%.
• Investor concerns about margins and valuation weighed on the stock despite the revenue result and positive outlook coverage.

Shares of United Parcel Service, Inc. (NYSE:UPS - Get Free Report) have received a consensus rating of "Hold" from the twenty-five ratings firms that are presently covering the stock, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell recommendation, eleven have assigned a hold recommendation, eleven have assigned a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month price target among analysts that have covered the stock in the last year is $118.45.

Several analysts have commented on the stock. The Goldman Sachs Group lifted their price target on shares of United Parcel Service from $128.00 to $132.00 and gave the company a "buy" rating in a research note on Wednesday, July 29th. JPMorgan Chase & Co. decreased their price target on shares of United Parcel Service from $118.00 to $115.00 and set a "neutral" rating on the stock in a report on Wednesday, July 29th. Raymond James Financial increased their price objective on shares of United Parcel Service from $127.00 to $131.00 and gave the company a "strong-buy" rating in a research report on Wednesday, July 29th. Bank of America boosted their price objective on United Parcel Service from $108.00 to $114.00 and gave the stock a "neutral" rating in a research note on Wednesday, October 28th. Finally, Truist Financial upped their price objective on shares of United Parcel Service from $115.00 to $120.00 and gave the company a "buy" rating in a report on Wednesday, October 28th.

Key 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

Insider Activity at United Parcel Service

In other news, insider Matthew Guffey sold 8,318 shares of United Parcel Service stock in a transaction on Wednesday, October 28th. The shares were sold at an average price of $105.39, for a total transaction of $876,634.02. Following the transaction, the insider directly owned 271 shares of the company's stock, valued at $28,560.69. This trade represents a 96.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.19% of the stock is owned by insiders.

Institutional Investors Weigh In On United Parcel Service

A number of institutional investors have recently made changes to their positions in the company. Bank of America Corp DE grew its position in 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 during the last quarter. Dimensional Fund Advisors LP boosted its stake in shares of United Parcel Service by 5.7% during the 1st quarter. Dimensional Fund Advisors LP now owns 5,037,626 shares of the transportation company's stock valued at $495,411,000 after buying an additional 271,646 shares during the last quarter. Bank of New York Mellon Corp raised its stake in United Parcel Service by 2.1% during the 1st quarter. Bank of New York Mellon Corp now owns 4,639,324 shares of the transportation company's stock valued at $456,417,000 after acquiring an additional 97,582 shares in the last quarter. First Trust Advisors LP grew its position in United Parcel Service by 37.4% during the 1st quarter. First Trust Advisors LP now owns 3,631,133 shares of the transportation company's stock worth $357,231,000 after purchasing an additional 988,442 shares in the last quarter. Finally, Pacer Advisors Inc. increased its position in United Parcel Service by 8.2% during the first quarter. Pacer Advisors Inc. now owns 3,510,630 shares of the transportation company's stock worth $345,376,000 after acquiring an additional 266,396 shares during the period. Hedge funds and other institutional investors own 60.26% of the company's stock.

United Parcel Service Stock Performance

NYSE UPS opened at $108.39 on Friday. The business's 50 day moving average price is $99.81 and its 200-day moving average price is $104.71. United Parcel Service has a fifty-two week low of $90.84 and a fifty-two week high of $122.41. The company has a debt-to-equity ratio of 1.67, a quick ratio of 1.18 and a current ratio of 1.24. The company has a market cap of $92.22 billion, a P/E ratio of 20.84, a P/E/G ratio of 1.97 and a beta of 0.98.

United Parcel Service (NYSE:UPS - Get Free Report) last posted its earnings results on Wednesday, November 4th. The transportation company reported $1.69 earnings per share for the quarter. United Parcel Service had a return on equity of 37.78% and a net margin of 4.84%. The firm had revenue of $22.85 billion during the quarter. Sell-side analysts predict that United Parcel Service will post 7.28 earnings per share for the current year.

United Parcel Service Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 3rd. Investors of record on Monday, November 16th will be given a $1.64 dividend. The ex-dividend date is Monday, November 16th. This represents a $6.56 dividend on an annualized basis and a dividend yield of 6.1%. United Parcel Service's dividend payout ratio (DPR) is 126.15%.

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.

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