United Parcel Service (NYSE:UPS) Shares Climb 1.8% - Still a Buy?

Key Points

• UPS shares rose 1.8% to about $101.39 as automation investments, higher revenue per package and planned efficiency savings supported the stock despite weaker delivery volumes.
• Falling shipment volumes remain the main risk. U.S. average daily package volume has declined year over year, while rising fuel costs and cautious analyst target reductions could pressure future earnings and the dividend.
• Analysts have a mixed but generally neutral view, with UPS holding an average “Hold” rating and a $115.70 consensus price target. Investors will focus on third-quarter results expected October 27, including volume trends, margins, fuel costs and full-year guidance.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report) shot up 1.8% on Thursday. The company traded as high as $101.97 and last traded at $101.3870. Approximately 4,694,773 shares changed hands during mid-day trading, a decline of 16% from the average daily volume of 5,603,128 shares. The stock had previously closed at $99.57.

Trending Headlines about United Parcel Service

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

• Positive Sentiment: Automation should support margins and peak-season capacity. UPS has completed upgrades at four additional facilities, increasing productivity and processing capacity ahead of the holiday shipping season. The investments could help offset labor and fuel-cost pressure over time. UPS automates four additional facilities
• Positive Sentiment: Higher revenue per package and efficiency savings are supporting the investment case. Recent coverage highlights UPS’s ability to earn more on fewer U.S. deliveries through pricing, while management has outlined significant efficiency-driven savings and is targeting improved profitability. This supports the stock’s recent strength despite softer volumes. UPS gave investors something to think about
• Positive Sentiment: Bernstein remains constructive. Sanford C. Bernstein lowered its UPS price target to $127 from $131 but retained an “outperform” rating, implying substantial potential upside from the reference price. The reduced target reflects a more cautious outlook, but the unchanged rating remains supportive. Bernstein UPS rating
• Neutral Sentiment: Third-quarter earnings expectations are the immediate focus. Analysts broadly expect adjusted EPS of approximately $1.62 for the September quarter. Investors will focus on U.S. daily volume, revenue per piece, operating margin, fuel costs and management’s full-year outlook when UPS reports on October 27. UPS Q3 2026 preview
• Negative Sentiment: Falling shipment volumes remain the central risk. U.S. average daily package volume previously declined to about 16.0 million from 16.55 million year over year. Higher prices have improved profitability so far, but sustained volume deterioration could eventually outweigh pricing benefits and pressure the dividend and earnings outlook. UPS volume and pricing analysis
• Negative Sentiment: Analyst target reductions and higher costs temper optimism. Coverage points to declining volumes and rising fuel expenses ahead of earnings, while a separate depositary-receipt price target was cut 12.5%. These signals suggest expectations remain guarded even as cost controls and pricing provide support. UPS buy, sell or hold analysis

Analyst Ratings Changes

A number of analysts have recently commented on the company. BMO Capital Markets boosted their price objective on United Parcel Service from $110.00 to $115.00 and gave the company a "market perform" rating in a research report on Wednesday, July 29th. Citigroup cut their price target on shares of United Parcel Service from $132.00 to $122.00 and set a "buy" rating for the company in a report on Wednesday, October 7th. Susquehanna increased their price objective on shares of United Parcel Service from $118.00 to $120.00 and gave the company a "neutral" rating in a report on Wednesday, July 29th. Citizens Jmp assumed coverage on shares of United Parcel Service in a research report on Wednesday, July 15th. They issued a "market perform" rating on the stock. Finally, Weiss Ratings upgraded shares of United Parcel Service from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, August 17th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, eleven have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, United Parcel Service presently has an average rating of "Hold" and an average target price of $115.70.

United Parcel Service Stock Up 1.8%

The company has a market capitalization of $86.26 billion, a PE ratio of 18.85, a price-to-earnings-growth ratio of 1.82 and a beta of 1.07. The firm has a 50-day moving average of $98.94 and a two-hundred day moving average of $103.63. The company has a quick ratio of 1.18, a current ratio of 1.18 and a debt-to-equity ratio of 1.58.

United Parcel Service (NYSE:UPS - Get Free Report) last posted its earnings results on Tuesday, July 28th. The transportation company reported $1.76 EPS for the quarter, beating analysts' consensus estimates of $1.65 by $0.11. The company 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%. United Parcel Service's revenue for the quarter was up 7.6% compared to the same quarter last year. During the same quarter in the prior 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 predict that United Parcel Service, Inc. will post 7.19 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. Shareholders of record on Monday, August 17th were paid a dividend of $1.64 per share. This represents a $6.56 dividend on an annualized basis and a yield of 6.5%. The ex-dividend date was Monday, August 17th. United Parcel Service's dividend payout ratio is 121.93%.

Institutional Investors Weigh In On United Parcel Service

Several institutional investors and hedge funds have recently modified their holdings of the company. Bank of America Corp DE increased its stake in 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 purchasing an additional 1,836,651 shares during the period. Dimensional Fund Advisors LP increased its stake in United Parcel Service by 5.7% during the 1st quarter. Dimensional Fund Advisors LP now owns 5,037,626 shares of the transportation company's stock worth $495,411,000 after buying an additional 271,646 shares during the period. Bank of New York Mellon Corp lifted its holdings in United Parcel Service by 2.1% during the 1st quarter. Bank of New York Mellon Corp now owns 4,639,324 shares of the transportation company's stock worth $456,417,000 after buying an additional 97,582 shares in the last quarter. First Trust Advisors LP lifted its holdings in United Parcel Service by 37.4% during the 1st quarter. First Trust Advisors LP now owns 3,631,133 shares of the transportation company's stock worth $357,231,000 after buying an additional 988,442 shares in the last quarter. Finally, Pacer Advisors Inc. boosted its position in United Parcel Service by 8.2% in the 1st quarter. Pacer Advisors Inc. now owns 3,510,630 shares of the transportation company's stock valued at $345,376,000 after buying an additional 266,396 shares during the period. Hedge funds and other institutional investors own 60.26% of the company's stock.

About United Parcel Service

United Parcel Service, Inc NYSE: UPS is a global package delivery and logistics company. Its services include the transportation and delivery of packages and freight, time-definite express delivery, supply chain management, customs brokerage, and logistics consulting. UPS serves businesses and consumers through ground, air, and international delivery networks.

The company operates across the United States and in international markets throughout Europe, Asia-Pacific, Latin America, Canada, and other regions.

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