Birch Capital Management LLC Purchases 10,136 Shares of United Parcel Service, Inc. $UPS

Key Points

• Birch Capital Management increased its UPS stake by 19.5% in the second quarter, acquiring 10,136 additional shares for a total of 62,243 shares valued at approximately $6.69 million.
• UPS reported better-than-expected quarterly results, with EPS of $1.76 versus the $1.65 consensus and revenue of $22.83 billion, up 7.6% year over year.
• Shares opened at $102.50, while UPS announced a quarterly dividend of $1.64, equivalent to a 6.4% annualized yield. Analysts maintain a consensus “Hold” rating with an average price target of $117.41.

Birch Capital Management LLC boosted its holdings in United Parcel Service, Inc. (NYSE:UPS - Free Report) by 19.5% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 62,243 shares of the transportation company's stock after acquiring an additional 10,136 shares during the period. United Parcel Service accounts for 3.3% of Birch Capital Management LLC's holdings, making the stock its 11th biggest position. Birch Capital Management LLC's holdings in United Parcel Service were worth $6,691,000 as of its most recent SEC filing.

A number of other hedge funds have also recently added to or reduced their stakes in UPS. Brighton Jones LLC raised its position in shares of United Parcel Service by 63.8% during the fourth quarter. Brighton Jones LLC now owns 12,126 shares of the transportation company's stock worth $1,529,000 after acquiring an additional 4,723 shares during the last quarter. Sivia Capital Partners LLC bought a new position in shares of United Parcel Service in the second quarter valued at approximately $277,000. SVB Wealth LLC bought a new stake in United Parcel Service in the 2nd quarter worth about $848,000. Treasurer of the State of North Carolina increased its position in shares of United Parcel Service by 2.7% during the second quarter. Treasurer of the State of North Carolina now owns 342,866 shares of the transportation company's stock valued at $34,609,000 after acquiring an additional 9,124 shares during the last quarter. Finally, Ieq Capital LLC grew its position in shares of United Parcel Service by 154.5% during the 2nd quarter. Ieq Capital LLC now owns 104,819 shares of the transportation company's stock valued at $10,580,000 after acquiring an additional 63,629 shares during the period. Institutional investors own 60.26% of the company's stock.

United Parcel Service Stock Down 1.7%

Shares of UPS opened at $102.50 on Wednesday. The firm has a market capitalization of $87.20 billion, a P/E ratio of 19.05, a P/E/G ratio of 1.86 and a beta of 1.06. The firm has a fifty day moving average price of $108.07 and a 200-day moving average price of $105.73. United Parcel Service, Inc. has a 12-month low of $82.00 and a 12-month high of $122.41. 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 (NYSE:UPS - Get Free Report) last issued its quarterly earnings data 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. The company had revenue of $22.83 billion for the quarter, compared to analyst estimates of $21.86 billion. United Parcel Service had a net margin of 5.08% and a return on equity of 37.50%. United Parcel Service's revenue was up 7.6% compared to the same quarter last year. During the same period last year, the company posted $1.55 earnings per share. United Parcel Service has set its FY 2026 guidance at 7.220-7.220 EPS. Equities research analysts expect that United Parcel Service, Inc. will post 7.22 earnings per share for the current year.

United Parcel Service Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders of record on Monday, August 17th will be issued a $1.64 dividend. This represents a $6.56 annualized dividend and a yield of 6.4%. The ex-dividend date of this dividend is Monday, August 17th. United Parcel Service's dividend payout ratio (DPR) is presently 121.93%.

United Parcel Service News Roundup

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

• Positive Sentiment: Strong quarterly performance supports the investment case. UPS was highlighted among the air-freight and logistics companies that outperformed in the second quarter. The company reported $1.76 in earnings per share, ahead of the $1.65 consensus estimate, while revenue increased 7.6% year over year to $22.83 billion, above expectations. Q2 earnings outperformers: United Parcel Service and the rest of the air freight and logistics stocks
• Positive Sentiment: High dividend yield may attract income-focused investors. Recent commentary described UPS as an undervalued dividend opportunity, with a yield of roughly 6.2%. The yield offers investors income while they wait for management’s turnaround efforts to improve growth and profitability. UPS has also appeared in screens of highly rated, high-dividend stocks. This Under-the-Radar Dividend Stock Yields 6.2%: Is It a Buy?
• Positive Sentiment: Marketing investment could support the UPS Store franchise network. The UPS Store introduced “Blu,” its first brand character, as part of a multiyear digital, television, social and print campaign intended to support franchisees and strengthen consumer engagement. The move is strategically positive, although its direct financial impact is uncertain. The UPS Store enlists first brand character to support franchisees
• Neutral Sentiment: Executive changes create both opportunity and execution risk. UPS’s new global operating model takes effect September 1, with new leaders for major business units and a newly created Chief Global Commercial Strategy Officer role. The transition is intended to refine the company’s transformation, but investors may remain cautious while judging whether the changes accelerate growth. UPS Announces Executive Leadership Changes and New Global Operating Model
• Negative Sentiment: The retirement of longtime executive Kate Gutmann adds uncertainty. Gutmann led UPS’s international, healthcare and supply-chain solutions businesses and was credited with expanding its healthcare and international logistics capabilities. Her departure for personal reasons removes an experienced leader during an important restructuring period. UPS Rejiggers Operating Model and Names Chief Global Operations Officer

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the stock. Weiss Ratings raised shares of United Parcel Service from a "sell (d+)" rating to a "hold (c-)" rating in a report on Monday, August 17th. Oppenheimer increased their price target on shares of United Parcel Service from $115.00 to $117.00 and gave the company an "outperform" rating in a research report on Wednesday, July 29th. Stephens lowered their price target on shares of United Parcel Service from $135.00 to $130.00 and set an "overweight" rating for the company in a report on Wednesday, July 29th. Citigroup raised their target price on shares of United Parcel Service from $127.00 to $132.00 and gave the stock a "buy" rating in a research report on Thursday, July 9th. Finally, Citizens Jmp assumed coverage on United Parcel Service in a report on Wednesday, July 15th. They issued a "market perform" rating on the stock. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $117.41.

United Parcel Service Company Profile

United Parcel Service NYSE: UPS is a global package delivery and supply chain management company that provides a broad range of transportation, logistics and e-commerce services. Its core business centers on small-package delivery and last-mile distribution for business and individual customers, supported by a network of ground transportation, air cargo operations (UPS Airlines) and sorting facilities. In addition to parcel delivery, UPS offers freight transportation, contract logistics, warehousing, customs brokerage and reverse-logistics solutions designed to support domestic and international commerce.

The company traces its roots to 1907 when it began as a small messenger service in the United States and later evolved into the United Parcel Service.

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