Pacer Advisors Inc. Increases Stake in United Parcel Service, Inc. $UPS

Key Points

• Pacer Advisors increased its UPS stake by 8.2% during the first quarter, acquiring 266,396 additional shares and bringing its holdings to 3.51 million shares valued at approximately $345.4 million.
• UPS reported strong second-quarter results, with adjusted earnings of $1.76 per share and revenue of $22.83 billion, beating estimates; revenue rose 7.6% year over year and the company raised its full-year outlook.
• Analyst sentiment remains mixed: the consensus rating is “Hold” with a $117.41 target price, while investors continue to weigh UPS’s 6.3% dividend yield against a payout ratio above 120% and potential cash-flow sustainability concerns.

Pacer Advisors Inc. raised its stake in United Parcel Service, Inc. (NYSE:UPS - Free Report) by 8.2% in the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 3,510,630 shares of the transportation company's stock after purchasing an additional 266,396 shares during the quarter. Pacer Advisors Inc. owned 0.41% of United Parcel Service worth $345,376,000 at the end of the most recent quarter.

A number of other institutional investors have also recently made changes to their positions in UPS. University of Texas Texas AM Investment Management Co. bought a new stake in United Parcel Service during the 4th quarter valued at $25,000. IFC & Insurance Marketing Inc. bought a new stake in United Parcel Service in the 4th quarter worth $25,000. Coston McIsaac & Partners grew its holdings in United Parcel Service by 77.8% in the 4th quarter. Coston McIsaac & Partners now owns 272 shares of the transportation company's stock worth $27,000 after acquiring an additional 119 shares during the last quarter. Torren Management LLC purchased a new position in shares of United Parcel Service in the fourth quarter valued at about $29,000. Finally, Kemnay Advisory Services Inc. purchased a new position in shares of United Parcel Service in the fourth quarter valued at about $29,000. Hedge funds and other institutional investors own 60.26% of the company's stock.

Wall Street Analyst Weigh In

UPS has been the subject of several recent analyst reports. BMO Capital Markets upped their price objective on shares of 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. UBS Group boosted their price target on United Parcel Service from $123.00 to $124.00 and gave the company a "buy" rating in a report on Wednesday, July 29th. Citigroup upped their price target on United Parcel Service from $127.00 to $132.00 and gave the company a "buy" rating in a research report on Thursday, July 9th. Wall Street Zen cut United Parcel Service from a "buy" rating to a "hold" rating in a report on Sunday, July 26th. Finally, Stifel Nicolaus lifted their price objective 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. One investment 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.com, the company currently has an average rating of "Hold" and a consensus target price of $117.41.

Key Stories Impacting United Parcel Service

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

• Positive Sentiment: Strong quarterly results and higher outlook: UPS reported second-quarter earnings of $1.76 per share, above the $1.65 consensus estimate, while revenue reached $22.83 billion versus expectations of $21.86 billion. Revenue increased 7.6% year over year, and the company raised its full-year outlook. UPS posts strong Q2 2026 results, raises full-year outlook
• Positive Sentiment: Improving business mix: UPS said the China-to-U.S. trade lane has returned to growth, its 18-month reduction in Amazon volumes is complete, and higher-margin freight is gaining traction. These developments could support margins and reduce uncertainty around the company’s business restructuring. UPS Says China-to-US Trade Lane Has Returned to Growth
• Positive Sentiment: Analyst price-target support: BMO Capital Markets raised its UPS target to $115, while Susquehanna increased its target to $120. Stifel, UBS and Oppenheimer also issued forecasts indicating potential appreciation. BMO raises UPS price target Stifel forecast
• Positive Sentiment: Small-business growth initiative: New digital tools for pickup management, label creation and mobile shipping could help UPS attract small-business customers and gain market share over time. UPS digital tools for small businesses
• Neutral Sentiment: Analyst views remain divided: While several firms see upside, Stephens issued a pessimistic forecast, highlighting uncertainty around the pace of the recovery. Stephens pessimistic forecast
• Negative Sentiment: Dividend and cash-flow concerns: A recent comparison with FedEx noted that UPS’s dividend consumed nearly all of its adjusted free cash flow last year, raising concerns about dividend sustainability and financial flexibility. UPS versus FedEx dividend analysis

United Parcel Service Trading Up 0.0%

NYSE:UPS opened at $104.25 on Monday. The company has a 50-day moving average price of $109.12 and a 200-day moving average price of $106.65. 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 1.21 and a debt-to-equity ratio of 1.58. The stock has a market cap of $88.62 billion, a price-to-earnings ratio of 19.38, a P/E/G ratio of 1.88 and a beta of 1.06.

United Parcel Service (NYSE:UPS - Get Free Report) last announced its earnings results on Tuesday, July 28th. The transportation company reported $1.76 earnings per share for the quarter, beating analysts' consensus estimates of $1.65 by $0.11. United Parcel Service had a net margin of 5.08% and a return on equity of 37.50%. 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 previous year, the firm posted $1.55 EPS. The company'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. Equities analysts predict that United Parcel Service, Inc. will post 7.21 EPS for the current year.

United Parcel Service Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 4th. Shareholders of record on Monday, May 18th were given a dividend of $1.64 per share. This represents a $6.56 annualized dividend and a yield of 6.3%. The ex-dividend date of this dividend was Monday, May 18th. United Parcel Service's payout ratio is presently 121.93%.

United Parcel Service 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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