United Parcel Service (NYSE:UPS) Price Target Lowered to $118.00 at Citigroup

Key Points

• Citigroup cut its price target on UPS from $120 to $118 but kept a "buy" rating, implying roughly a 21% upside from current share levels.
• MarketBeat's consensus is a Hold with a $113.60 target, reflecting mixed analyst views (2 Strong Buy, 9 Buy, 14 Hold, 3 Sell).
• Near‑term margin risks include a Teamsters settlement capping driver buyouts and a surge in diesel costs, which have led some analysts (e.g., Bank of America) to trim their UPS targets.

United Parcel Service (NYSE:UPS - Get Free Report) had its price objective dropped by Citigroup from $120.00 to $118.00 in a research note issued on Tuesday,Benzinga reports. The brokerage currently has a "buy" rating on the transportation company's stock. Citigroup's price objective points to a potential upside of 20.95% from the company's current price.

Other equities research analysts have also recently issued research reports about the company. BMO Capital Markets raised their target price on United Parcel Service from $105.00 to $110.00 and gave the stock a "market perform" rating in a research note on Wednesday, January 28th. Stifel Nicolaus raised their target price on United Parcel Service from $112.00 to $116.00 and gave the stock a "buy" rating in a research note on Wednesday, January 28th. BNP Paribas Exane cut United Parcel Service from a "neutral" rating to an "underperform" rating and set a $85.00 target price for the company. in a research note on Tuesday, January 13th. Weiss Ratings raised United Parcel Service from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Friday, February 6th. Finally, Evercore raised their price objective on United Parcel Service from $94.00 to $113.00 and gave the company an "in-line" rating in a research note on Wednesday, January 21st. Two investment analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating, fourteen have given a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, United Parcel Service presently has a consensus rating of "Hold" and a consensus target price of $113.60.

United Parcel Service Trading Up 0.4%

Shares of UPS traded up $0.40 during mid-day trading on Tuesday, reaching $97.56. 4,353,128 shares of the company were exchanged, compared to its average volume of 6,510,975. United Parcel Service has a 52 week low of $82.00 and a 52 week high of $122.41. The company has a debt-to-equity ratio of 1.45, a quick ratio of 1.22 and a current ratio of 1.22. The stock has a market capitalization of $82.84 billion, a PE ratio of 14.87, a PEG ratio of 1.54 and a beta of 1.12. The business has a 50 day simple moving average of $106.94 and a two-hundred day simple moving average of $99.38.

United Parcel Service (NYSE:UPS - Get Free Report) last released its earnings results on Tuesday, January 27th. The transportation company reported $2.38 EPS for the quarter, topping the consensus estimate of $2.20 by $0.18. United Parcel Service had a return on equity of 38.30% and a net margin of 6.28%.The business had revenue of $24.48 billion during the quarter, compared to analysts' expectations of $23.91 billion. During the same quarter last year, the firm posted $2.75 earnings per share. The firm's revenue was down 3.2% on a year-over-year basis. On average, analysts predict that United Parcel Service will post 7.95 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Norman M. Brothers, Jr. sold 25,014 shares of United Parcel Service stock in a transaction that occurred on Wednesday, January 28th. The stock was sold at an average price of $106.15, for a total transaction of $2,655,236.10. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 0.13% of the stock is currently owned by insiders.

Institutional Trading of United Parcel Service

Hedge funds have recently bought and sold shares of the business. University of Texas Texas AM Investment Management Co. bought a new stake in United Parcel Service during the fourth quarter worth $25,000. IFC & Insurance Marketing Inc. bought a new stake in United Parcel Service during the fourth quarter worth $25,000. Coston McIsaac & Partners raised its stake in shares of United Parcel Service by 77.8% in the fourth quarter. Coston McIsaac & Partners now owns 272 shares of the transportation company's stock valued at $27,000 after buying an additional 119 shares during the period. Torren Management LLC bought a new stake in shares of United Parcel Service in the fourth quarter valued at $29,000. Finally, Kemnay Advisory Services Inc. bought a new stake in shares of United Parcel Service in the fourth quarter valued at $29,000. 60.26% of the stock is currently owned by institutional investors.

United Parcel Service News Summary

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

• Positive Sentiment: Settlement removes labor uncertainty by capping voluntary driver buyouts and clarifying seniority protections through 2028 — this lowers litigation and bargaining risk for investors. UPS, Teamsters reach settlement that caps driver severance offers
• Neutral Sentiment: UPS and the Teamsters agreed to cap buyouts at about 7,500 drivers and to limit severance payments (reported cap ~$150k per driver), offering clarity on workforce plans but constraining the scale of voluntary cuts. UPS Inks Deal to Cap Driver Buyouts: Will the Cost Burden Ease?
• Negative Sentiment: Bank of America trimmed its UPS price target (from $112 to $105), citing the Teamsters settlement as a constraint on margin recovery — a direct signal that analysts expect earnings pressure from the deal. UPS Price Target Trimmed to $105 by BofA as Teamsters Settlement Tightens the Road to Margin Recovery
• Negative Sentiment: Diesel prices have surged (reports say ~50% jump), lifting fuel surcharges industry‑wide and increasing UPS’s network costs at a time when capacity is already tight — a clear near‑term headwind for margins. Diesel Prices Jump Nearly 50%, Trucking Surcharges Hit Highest Since 2022
• Negative Sentiment: FedEx’s recent stock rally and positive guidance spotlight competitor momentum on cost cuts — increasing investor scrutiny on UPS’s ability to execute margin recovery while managing higher fuel and labor costs. FedEx Stock Rises 16.2% in 3 Months: Buy the Rally or Wait?

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.

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