United Parcel Service, Inc. $UPS Stock Purchased by CX Institutional

Key Points

• CX Institutional increased its UPS stake by 959% in the third quarter, purchasing 77,836 additional shares and bringing its holdings to 85,952 shares valued at approximately $8.03 million.
• Institutional interest remains significant, with several major investors expanding their positions; hedge funds and other institutions collectively own 60.26% of UPS.
• UPS shares recently traded near $92.94, while analysts maintain a consensus “Hold” rating and an average price target of $116.65. The company offers a roughly 7.1% dividend yield, but its payout exceeds earnings and free cash flow, raising concerns about dividend sustainability.

CX Institutional boosted its stake in United Parcel Service, Inc. (NYSE:UPS - Free Report) by 959.0% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 85,952 shares of the transportation company's stock after purchasing an additional 77,836 shares during the period. CX Institutional's holdings in United Parcel Service were worth $8,031,000 at the end of the most recent reporting period.

Several other hedge funds also recently added to or reduced their stakes in UPS. Victory Capital Management Inc. grew its stake 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 in the last quarter. Pacer Advisors Inc. grew its position in 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 acquiring an additional 2,710,470 shares in the last quarter. Wellington Management Group LLP raised its stake in shares of United Parcel Service by 262.7% during the second quarter. Wellington Management Group LLP now owns 3,046,707 shares of the transportation company's stock valued at $327,521,000 after purchasing an additional 2,206,666 shares during the period. Bank of America Corp DE raised its stake in shares of United Parcel Service by 23.3% during the first quarter. Bank of America Corp DE now owns 9,728,123 shares of the transportation company's stock valued at $957,053,000 after purchasing an additional 1,836,651 shares during the period. Finally, Manning & Napier Advisors LLC acquired a new position in shares of United Parcel Service during the second quarter worth $192,304,000. 60.26% of the stock is owned by hedge funds and other institutional investors.

Key United Parcel Service News

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

• Positive Sentiment: UBS maintained its Buy rating and $124 price target, citing improving U.S. domestic margins as the key potential driver of UPS’s earnings outlook. Air-freight demand, e-commerce activity and cost-cutting efforts also provide industry tailwinds. UPS earnings estimates cut by UBS as domestic margins remain key to outlook
• Positive Sentiment: UPS launched its Secure Commerce platform, combining insurance, fraud mitigation and AI-based risk management. The offering could strengthen customer retention, reduce shipment losses and create opportunities for higher-value services. UPS Strengthens E-Commerce Security With New Secure Commerce Platform
• Neutral Sentiment: UBS expects UPS to deliver results broadly in line with expectations. The firm trimmed its third-quarter EPS estimate to $1.63 from $1.67 and fourth-quarter estimate to $2.70 from $2.72, limiting the immediate earnings catalyst despite its bullish rating. United Parcel Service Likely to Deliver In-Line Results, UBS Says
• Neutral Sentiment: UPS’s history of earnings surprises and improving air-freight conditions could support a quarterly beat, although these expectations are already reflected in some analyst forecasts. Will UPS Beat Estimates Again in Its Next Earnings Report?
• Negative Sentiment: BNP Paribas Exane lowered its UPS price target to $85 from $90 and assigned an Underperform rating, implying that margin, volume and cost pressures could outweigh the company’s high dividend yield. BNP Paribas Exane lowers UPS price target
• Negative Sentiment: UPS’s dividend payout is estimated at roughly 99% of trailing free cash flow. The dividend yield near 7% is attractive, but the high payout and recent decision to hold the dividend flat raise concerns about financial flexibility and future growth.

Analyst Ratings Changes

Several equities research analysts recently issued reports on UPS shares. BMO Capital Markets lifted their price target on shares of United Parcel Service from $110.00 to $115.00 and gave the stock a "market perform" rating in a research note on Wednesday, July 29th. Oppenheimer upped their price objective 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. Weiss Ratings raised United Parcel Service from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, August 17th. Susquehanna boosted their price target on United Parcel Service from $118.00 to $120.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 29th. Finally, Citizens Jmp started coverage on United Parcel Service in a report on Wednesday, July 15th. They issued a "market perform" rating for the company. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, eleven have issued a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $116.65.

United Parcel Service Stock Down 1.0%

UPS stock traded down $0.95 during mid-day trading on Friday, hitting $92.94. 4,672,817 shares of the company were exchanged, compared to its average volume of 5,684,880. The firm has a fifty day simple moving average of $102.13 and a 200 day simple moving average of $103.78. The company has a market capitalization of $79.07 billion, a PE ratio of 17.28, a price-to-earnings-growth ratio of 1.72 and a beta of 1.07. United Parcel Service, Inc. has a twelve month low of $82.00 and a twelve 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 earnings results on Tuesday, July 28th. The transportation company reported $1.76 earnings per share (EPS) 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 business 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 business posted $1.55 EPS. The company'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. On average, research analysts forecast that United Parcel Service, Inc. will post 7.21 earnings per share for the current fiscal year.

United Parcel Service Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 3rd. Stockholders of record on Monday, August 17th were issued a $1.64 dividend. This represents a $6.56 dividend on an annualized basis and a dividend yield of 7.1%. The ex-dividend date was Monday, August 17th. United Parcel Service's payout ratio is 121.93%.

United Parcel Service Company Profile

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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