United Parcel Service, Inc. (UPS) - What Are Brokerages Thinking About This Stock?

Key Points

• Analyst consensus is “Hold”: Of 26 analysts, 11 rate UPS a buy, 11 a hold, 3 a sell and 1 a strong buy. The average 12-month price target is $115.87, above the reported share price of $95.27.
• UPS exceeded quarterly expectations: The company reported adjusted EPS of $1.76 versus the $1.65 consensus and revenue of $22.83 billion versus estimates of $21.86 billion; revenue increased 7.6% year over year.
• Income remains attractive but stretched: UPS pays an annualized dividend of $6.56 per share, representing a 6.9% yield, though its 121.93% payout ratio exceeds reported earnings. Institutional investors own 60.26% of the stock.

Shares of United Parcel Service, Inc. (NYSE:UPS - Get Free Report) have earned an average rating of "Hold" from the twenty-six analysts that are covering the stock, Marketbeat reports. Three equities research analysts have rated the stock with a sell rating, eleven have given a hold rating, eleven have assigned a buy rating and one has issued a strong buy rating on the company. The average 12 month price objective among brokers that have issued ratings on the stock in the last year is $115.87.

Several research firms have recently commented on UPS. Wall Street Zen downgraded shares of United Parcel Service from a "buy" rating to a "hold" rating in a report on Saturday, September 19th. Evercore raised their target price on shares of United Parcel Service from $117.00 to $118.00 in a report on Wednesday, July 29th. Citigroup decreased their target price on shares of United Parcel Service from $132.00 to $122.00 and set a "buy" rating for the company in a research report on Wednesday, October 7th. Citizens Jmp assumed coverage on shares of United Parcel Service in a research report on Wednesday, July 15th. They set a "market perform" rating for the company. Finally, UBS Group upped their price target on shares of United Parcel Service from $123.00 to $124.00 and gave the company a "buy" rating in a report on Wednesday, July 29th.

United Parcel Service Trading Up 0.7%

United Parcel Service stock opened at $95.27 on Tuesday. The company has a quick ratio of 1.18, a current ratio of 1.18 and a debt-to-equity ratio of 1.58. United Parcel Service has a 52 week low of $82.00 and a 52 week high of $122.41. The company has a market capitalization of $81.05 billion, a price-to-earnings ratio of 17.71, a price-to-earnings-growth ratio of 1.74 and a beta of 1.07. The stock has a 50-day moving average price of $100.15 and a 200 day moving average price of $103.60.

United Parcel Service (NYSE:UPS - Get Free Report) last issued its earnings results on Tuesday, July 28th. The transportation company reported $1.76 EPS for the quarter, beating analysts' consensus estimates 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 firm had revenue of $22.83 billion for the quarter, compared to analyst estimates of $21.86 billion. During the same quarter in the prior year, the firm earned $1.55 earnings per share. United Parcel Service's revenue for the quarter 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. Sell-side analysts anticipate that United Parcel Service will post 7.19 EPS for the current year.

United Parcel Service Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Shareholders 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 dividend on an annualized basis and a dividend yield of 6.9%. United Parcel Service's dividend payout ratio (DPR) is presently 121.93%.

Institutional Trading of United Parcel Service

Hedge funds have recently modified their holdings of the stock. Bank of America Corp DE increased its stake 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 buying an additional 1,836,651 shares during the period. Dimensional Fund Advisors LP boosted its position in United Parcel Service by 5.7% in 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 period. Bank of New York Mellon Corp boosted its position in United Parcel Service by 2.1% in 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 buying an additional 97,582 shares during the period. First Trust Advisors LP boosted its position in United Parcel Service by 37.4% in the 1st quarter. First Trust Advisors LP now owns 3,631,133 shares of the transportation company's stock valued at $357,231,000 after buying an additional 988,442 shares during the period. Finally, Pacer Advisors Inc. grew its stake in shares of United Parcel Service by 8.2% in 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 in the last quarter. Hedge funds and other institutional investors own 60.26% of the company's stock.

About United Parcel Service

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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