Investors Purchase High Volume of Call Options on United Parcel Service (NYSE:UPS)

Key Points

• Unusual options activity surged in UPS, with investors buying 34,148 call options on Thursday, about 33% above the stock’s average call volume.
• Analyst sentiment has turned more positive, as Citigroup raised its price target to $132 and Stephens upgraded the stock to Strong Buy, even though the overall consensus rating remains Hold.
• UPS recently posted better-than-expected earnings and revenue, reporting $1.07 EPS versus the $1.02 estimate and $21.20 billion in revenue versus expectations of $20.99 billion, while also maintaining a hefty 5.9% dividend yield.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report) saw some unusual options trading activity on Thursday. Investors purchased 34,148 call options on the stock. This is an increase of approximately 33% compared to the average volume of 25,672 call options.

Institutional Inflows and Outflows

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

United Parcel Service Trading Up 1.8%

UPS traded up $1.97 during trading on Thursday, hitting $111.91. The company's stock had a trading volume of 1,557,040 shares, compared to its average volume of 6,020,810. The firm's 50 day moving average price is $105.09 and its 200-day moving average price is $105.48. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.21 and a quick ratio of 1.21. The stock has a market cap of $95.12 billion, a PE ratio of 18.05, a PEG ratio of 1.78 and a beta of 1.05. United Parcel Service has a twelve month low of $82.00 and a twelve month high of $122.41.

United Parcel Service (NYSE:UPS - Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The transportation company reported $1.07 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.02 by $0.05. The business had revenue of $21.20 billion for the quarter, compared to analysts' expectations of $20.99 billion. United Parcel Service had a return on equity of 35.95% and a net margin of 5.94%.The business's revenue was down 1.4% on a year-over-year basis. During the same quarter last year, the firm earned $1.49 earnings per share. On average, analysts expect that United Parcel Service will post 7.11 earnings per share for the current year.

United Parcel Service Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, June 4th. Investors of record on Monday, May 18th were given a dividend of $1.64 per share. The ex-dividend date was Monday, May 18th. This represents a $6.56 annualized dividend and a yield of 5.9%. United Parcel Service's dividend payout ratio is 106.15%.

United Parcel Service News Roundup

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

• Positive Sentiment: Citigroup raised its price target on UPS to $132 from $127 and reiterated a Buy rating, signaling confidence that the stock still has meaningful upside from current levels.
• Positive Sentiment: Stephens upgraded UPS to Strong Buy, adding to the improving analyst sentiment around the company.
• Positive Sentiment: Zacks highlighted UPS’s strong earnings-surprise history and said the company has the ingredients for another quarterly beat, which could support the shares ahead of results. Article Title
• Positive Sentiment: Another Zacks piece said UPS is attracting investor attention, suggesting the stock is seeing elevated interest from market participants. Article Title
• Neutral Sentiment: A FreightWaves report said the U.S. Postal Service is shifting more long-distance mail to air to avoid penalties tied to a UPS volume contract. While this underscores UPS’s negotiating leverage, it also highlights distortions in postal operations rather than a direct earnings catalyst. Article Title
• Negative Sentiment: Some recent commentary remains cautious, with one analyst downgrading UPS to Hold and warning of muted revenue growth and bottom-line pressure into FY2026.
• Negative Sentiment: Bearish coverage also continues to question dividend sustainability and margins, citing competition from Amazon logistics and weak free cash flow.

Analyst Ratings Changes

A number of research analysts have recently weighed in on UPS shares. Stephens raised shares of United Parcel Service to a "strong-buy" rating in a research note on Wednesday. Citigroup upped their target price on United Parcel Service from $127.00 to $132.00 and gave the company a "buy" rating in a research note on Thursday. Evercore lowered their target price on United Parcel Service from $115.00 to $113.00 and set an "in-line" rating on the stock in a report on Wednesday, April 22nd. Susquehanna raised their price target on United Parcel Service from $116.00 to $118.00 and gave the stock a "neutral" rating in a research report on Wednesday, April 29th. Finally, Weiss Ratings cut United Parcel Service from a "hold (c)" rating to a "sell (d+)" rating in a report on Friday, May 8th. Two research analysts have rated the stock with a Strong Buy rating, seven have assigned a Buy rating, ten have assigned a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $111.10.

About United Parcel Service

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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