United Parcel Service, Inc. (NYSE:UPS) Given Consensus Rating of "Hold" by Analysts

Key Points

• Analysts remain neutral on UPS: Twenty-two firms collectively rate the stock “Hold,” with 11 hold, 8 buy, 1 strong-buy and 2 sell ratings. The average 12-month price target is $115.33.
• Recent results exceeded expectations and guidance was raised: UPS reported second-quarter revenue of $22.83 billion, up 7.6% year over year, and adjusted EPS of $1.76 versus a $1.65 consensus estimate. Management raised its 2026 EPS outlook to $7.22, citing improved pricing, efficiency and the completion of lower-margin Amazon shipment reductions.
• Profitability and competitive pressures remain concerns: Transformation charges reduced GAAP EPS to $0.71, while operating profit weakened and investors remain uncertain whether higher-margin growth can offset lost Amazon volume. Institutional investors own 60.26% of UPS, and the company’s $6.56 annualized dividend represents a 6.3% yield.

United Parcel Service, Inc. (NYSE:UPS - Get Free Report) has earned a consensus recommendation of "Hold" from the twenty-two ratings firms that are covering the company, Marketbeat.com reports. Two analysts have rated the stock with a sell rating, eleven have assigned a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the company. The average 1-year target price among brokers that have issued ratings on the stock in the last year is $115.3333.

Several research analysts recently commented on UPS shares. Evercore reduced their price target on shares of United Parcel Service from $115.00 to $113.00 and set an "in-line" rating on the stock in a research note on Wednesday, April 22nd. Sanford C. Bernstein boosted their price objective on shares of United Parcel Service from $130.00 to $133.00 and gave the company an "outperform" rating in a research report on Tuesday, July 21st. Stephens dropped their target price on shares of United Parcel Service from $135.00 to $130.00 and set an "overweight" rating on the stock in a research note on Wednesday. Susquehanna raised their target price on shares of United Parcel Service from $118.00 to $120.00 and gave the stock a "neutral" rating in a research report on Wednesday. Finally, BMO Capital Markets lifted their price target 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.

Institutional Investors Weigh In On United Parcel Service

Several hedge funds have recently made changes to their positions in UPS. Vanguard Group Inc. increased its stake in shares of United Parcel Service by 1.8% during the fourth quarter. Vanguard Group Inc. now owns 68,496,420 shares of the transportation company's stock valued at $6,794,160,000 after buying an additional 1,218,432 shares during the period. State Street Corp raised its holdings in shares of United Parcel Service by 3.3% in the fourth quarter. State Street Corp now owns 32,092,627 shares of the transportation company's stock valued at $3,183,268,000 after acquiring an additional 1,029,377 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its stake in United Parcel Service by 3.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 27,142,759 shares of the transportation company's stock worth $2,692,290,000 after acquiring an additional 856,125 shares during the period. Geode Capital Management LLC grew its holdings in United Parcel Service by 1.4% during the 4th quarter. Geode Capital Management LLC now owns 17,154,091 shares of the transportation company's stock worth $1,703,291,000 after acquiring an additional 240,253 shares in the last quarter. Finally, Victory Capital Management Inc. grew its holdings in United Parcel Service by 72.9% during the 4th quarter. Victory Capital Management Inc. now owns 13,818,314 shares of the transportation company's stock worth $1,370,639,000 after acquiring an additional 5,826,824 shares in the last quarter. 60.26% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting United Parcel Service

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

• Positive Sentiment: Second-quarter results exceeded expectations. UPS reported revenue of approximately $22.8 billion, up 7.6% year over year, and adjusted EPS of $1.76 versus the $1.65–$1.66 consensus. Growth in pricing, premium services and network efficiency helped offset lower package volumes. UPS beats earnings expectations, raises full-year guidance
• Positive Sentiment: UPS raised its full-year outlook. The company now expects 2026 revenue of about $91.2 billion and EPS of $7.22, above consensus estimates of roughly $90.0 billion and $7.12. Management said the planned reduction of lower-margin Amazon shipments is complete, creating a foundation for second-half margin expansion. UPS Q2 Earnings Call Highlights Network Reset and Higher Outlook
• Positive Sentiment: Several analysts increased their targets. UBS raised its target to $124 and Stifel to $115, both maintaining buy ratings. Oppenheimer lifted its target to $117 with an outperform rating, while BMO and Susquehanna also raised targets. Stephens reduced its target to $130 but retained an overweight rating.
• Neutral Sentiment: Valuation may appeal to long-term investors. Commentary highlights that UPS has recovered over the past year but remains well below its three-year-ago level, with some valuation measures suggesting the market may be underpricing its cash-flow and earnings potential. Is United Parcel Service Stock A Bargain Before Earnings?
• Negative Sentiment: Profitability remains the key investor concern. GAAP EPS was only $0.71, versus $1.76 adjusted, after $891 million in after-tax transformation charges. Consolidated operating profit also fell sharply, while international operating profit and near-term domestic expectations weakened. Investors remain skeptical that higher-margin growth can fully offset the loss of Amazon volume.
• Negative Sentiment: Competitive pressure is increasing. Retailers are diversifying away from the traditional UPS-FedEx-USPS delivery network as customers demand faster and often free shipping, potentially pressuring UPS volumes, pricing and margins. Carrier diversification unravels the last-mile delivery duopoly

United Parcel Service Stock Performance

Shares of NYSE:UPS opened at $104.58 on Thursday. The company has a market capitalization of $88.89 billion, a price-to-earnings ratio of 19.44, a PEG ratio of 1.68 and a beta of 1.05. United Parcel Service has a 12 month low of $82.00 and a 12 month high of $122.41. The firm's 50-day moving average is $108.92 and its 200 day moving average is $106.70. The company has a current ratio of 1.18, a quick ratio of 1.21 and a debt-to-equity ratio of 1.58.

United Parcel Service (NYSE:UPS - Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The transportation company reported $1.76 earnings per share (EPS) for the quarter, topping the consensus estimate 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 during the quarter, compared to the consensus estimate of $21.86 billion. During the same quarter last year, the firm earned $1.55 earnings per share. The firm's quarterly revenue 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. Research analysts predict that United Parcel Service will post 7.11 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 issued a dividend of $1.64 per share. This represents a $6.56 annualized dividend and a yield of 6.3%. The ex-dividend date was Monday, May 18th. United Parcel Service's dividend payout ratio (DPR) is presently 121.93%.

United Parcel Service Company 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.

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.