United Parcel Service, Inc. (NYSE:UPS) Receives Average Rating of “Hold” from Analysts

Shares of United Parcel Service, Inc. (NYSE:UPS) have received a consensus rating of “Hold” from the twenty-two research firms that are covering the company, Marketbeat Ratings reports. Two investment analysts have rated the stock with a sell rating, eleven have issued a hold rating, eight have assigned a buy rating and one has issued a strong buy rating on the company. The average 1 year price objective among analysts that have covered the stock in the last year is $115.3333.

UPS has been the topic of a number of recent research reports. Evercore dropped their price objective on United Parcel Service from $115.00 to $113.00 and set an “in-line” rating on the stock in a research report on Wednesday, April 22nd. Susquehanna increased their price target on shares of United Parcel Service from $118.00 to $120.00 and gave the company a “neutral” rating in a research report on Wednesday. Sanford C. Bernstein raised their price target on shares of United Parcel Service from $130.00 to $133.00 and gave the company an “outperform” rating in a report on Tuesday, July 21st. BMO Capital Markets lifted their price objective on shares of United Parcel Service from $110.00 to $115.00 and gave the stock a “market perform” rating in a research report on Wednesday. Finally, Citizens Jmp began coverage on shares of United Parcel Service in a research report on Wednesday, July 15th. They issued a “market perform” rating on the stock.

Hedge Funds Weigh In On United Parcel Service

Large investors have recently made changes to their positions in the business. Norges Bank purchased a new stake in shares of United Parcel Service during the 4th quarter valued at $902,446,000. Victory Capital Management Inc. grew its stake 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 buying an additional 5,826,824 shares during the last quarter. AQR Capital Management LLC increased its position in United Parcel Service by 175.7% during the 4th quarter. AQR Capital Management LLC now owns 5,200,135 shares of the transportation company’s stock valued at $515,801,000 after buying an additional 3,314,166 shares in the last quarter. 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. Finally, Bank of America Corp DE raised its stake in United Parcel Service by 23.3% in the first quarter. Bank of America Corp DE now owns 9,728,123 shares of the transportation company’s stock valued at $957,053,000 after buying an additional 1,836,651 shares during the last quarter. 60.26% of the stock is owned by institutional investors and hedge funds.

United Parcel Service Stock Down 0.9%

United Parcel Service stock opened at $104.58 on Thursday. The business has a fifty day moving average of $108.92 and a two-hundred day moving average of $106.70. The company has a quick ratio of 1.21, a current ratio of 1.18 and a debt-to-equity ratio of 1.58. The firm has a market cap of $88.89 billion, a P/E ratio of 19.44, a P/E/G ratio of 1.68 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) last announced its earnings results on Tuesday, July 28th. The transportation company reported $1.76 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.65 by $0.11. United Parcel Service had a return on equity of 37.50% and a net margin of 5.08%.The business had revenue of $22.83 billion for the quarter, compared to analysts’ expectations of $21.86 billion. During the same quarter last year, the firm earned $1.55 EPS. The business’s revenue for the quarter was up 7.6% on a year-over-year basis. United Parcel Service has set its FY 2026 guidance at 7.220-7.220 EPS. On average, analysts forecast that United Parcel Service will post 7.11 earnings per share for the current fiscal year.

United Parcel Service Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, June 4th. Shareholders of record on Monday, May 18th were paid a $1.64 dividend. 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 121.93%.

United Parcel Service News Summary

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

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.