Stock Traders Buy High Volume of Call Options on United Parcel Service (NYSE:UPS)

Key Points

• Unusual options activity: Traders bought 32,492 UPS call options, 55% above the typical volume of 21,030, signaling increased bullish options interest.
• Mixed analyst outlook: UPS has a consensus “Hold” rating and an average price target of $115.87, with recent analysts both raising and lowering their targets.
• Shares and dividend: UPS closed down 0.6% at $97.22 while paying a quarterly dividend of $1.64, equivalent to a 6.7% annualized yield; its payout ratio stands above 120%.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report) saw some unusual options trading activity on Friday. Stock traders purchased 32,492 call options on the stock. This is an increase of 55% compared to the typical volume of 21,030 call options.

Analyst Ratings Changes

Several analysts have recently weighed in on the stock. Bank of America decreased their price target on shares of United Parcel Service from $115.00 to $108.00 and set a "neutral" rating for the company in a research note on Monday, September 21st. Raymond James Financial upped their price target on shares of United Parcel Service from $127.00 to $131.00 and gave the stock a "strong-buy" rating in a research report on Wednesday, July 29th. The Goldman Sachs Group increased their price objective on shares of United Parcel Service from $128.00 to $132.00 and gave the company a "buy" rating in a research note on Wednesday, July 29th. JPMorgan Chase & Co. cut their price objective on shares of United Parcel Service from $118.00 to $115.00 and set a "neutral" rating on the stock in a report on Wednesday, July 29th. Finally, Sanford C. Bernstein reissued a "buy" rating on shares of United Parcel Service in a research note on Monday, August 24th. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, eleven have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $115.87.

United Parcel Service Stock Down 0.6%

UPS traded down $0.61 on Friday, hitting $97.22. The company had a trading volume of 2,703,745 shares, compared to its average volume of 5,619,285. The stock has a market capitalization of $82.72 billion, a price-to-earnings ratio of 18.07, a P/E/G ratio of 1.76 and a beta of 1.07. The stock has a fifty day moving average price of $99.52 and a 200-day moving average price of $103.59. United Parcel Service has a 12-month low of $85.24 and a 12-month high of $122.41. The company has a debt-to-equity ratio of 1.58, a quick ratio of 1.18 and a current ratio of 1.18.

United Parcel Service (NYSE:UPS - Get Free Report) last released its quarterly 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. The business had revenue of $22.83 billion for the quarter, compared to analysts' expectations of $21.86 billion. United Parcel Service had a net margin of 5.08% and a return on equity of 37.50%. The company's revenue was up 7.6% compared to the same quarter last year. During the same period last year, the business earned $1.55 EPS. United Parcel Service has set its FY 2026 guidance at 7.220-7.220 EPS. Analysts predict that United Parcel Service will post 7.19 EPS for the current fiscal year.

United Parcel Service Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, September 3rd. Shareholders of record on Monday, August 17th were issued a $1.64 dividend. This represents a $6.56 annualized dividend and a yield of 6.7%. The ex-dividend date of this dividend was Monday, August 17th. United Parcel Service's payout ratio is currently 121.93%.

Institutional Trading of United Parcel Service

Hedge funds and other institutional investors have recently made changes to their positions in the business. Pacer Advisors Inc. increased its position in United Parcel Service by 507.8% during the 4th quarter. Pacer Advisors Inc. now owns 3,244,234 shares of the transportation company's stock valued at $321,796,000 after buying an additional 2,710,470 shares in the last quarter. Wellington Management Group LLP grew 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 worth $327,521,000 after acquiring an additional 2,206,666 shares during the last quarter. Bank of America Corp DE grew 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 worth $957,053,000 after acquiring an additional 1,836,651 shares during the last quarter. Manning & Napier Advisors LLC purchased a new stake in shares of United Parcel Service during the second quarter worth about $192,304,000. Finally, Cullen Capital Management LLC acquired a new position in shares of United Parcel Service during the second quarter valued at about $178,071,000. Hedge funds and other institutional investors own 60.26% of the company's stock.

Key United Parcel Service News

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

• Positive Sentiment: UPS is included among transportation companies considered likely to beat earnings estimates this season. The potential catalyst is an earnings surprise, although the article does not provide a specific forecast for UPS. 4 Transportation Stocks Likely to Deliver an Earnings Beat This Season
• Positive Sentiment: UPS opened an $80 million logistics hub at Clark in the Philippines and plans to hire about 600 workers. The facility is intended to strengthen international trade links, improve regional connectivity and potentially lower transportation costs over time. UPS opens $80-million Clark hub, hires 600 workers
• Positive Sentiment: A bullish analysis argues that network optimization, including artificial intelligence, and a shift toward higher-margin healthcare shipments could support double-digit adjusted EPS growth, expanding margins and more than $91 billion in annual revenue. It also views the dividend as supported by free cash flow. UPS: Fuel Prices Don't Change The Business

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.