United Parcel Service (NYSE:UPS) Upgraded to “Buy” at HSBC

United Parcel Service (NYSE:UPS) was upgraded by research analysts at HSBC from a “hold” rating to a “buy” rating in a research report issued on Wednesday.

Other analysts have also issued research reports about the company. Citigroup boosted their target price on United Parcel Service from $120.00 to $126.00 and gave the company a “buy” rating in a research report on Thursday, January 8th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of United Parcel Service in a research report on Wednesday, January 21st. Stephens raised shares of United Parcel Service to a “hold” rating in a research report on Wednesday, October 29th. Susquehanna upped their target price on shares of United Parcel Service from $105.00 to $115.00 and gave the stock a “neutral” rating in a research note on Tuesday, January 20th. Finally, Sanford C. Bernstein boosted their price target on shares of United Parcel Service from $122.00 to $125.00 and gave the stock an “outperform” rating in a research note on Friday, January 9th. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, fifteen have given a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, United Parcel Service presently has a consensus rating of “Hold” and an average target price of $113.53.

United Parcel Service Price Performance

UPS stock opened at $107.24 on Wednesday. United Parcel Service has a 52-week low of $82.00 and a 52-week high of $136.99. The business has a fifty day moving average of $101.01 and a two-hundred day moving average of $93.40. The stock has a market cap of $90.98 billion, a price-to-earnings ratio of 16.57, a price-to-earnings-growth ratio of 2.31 and a beta of 1.11. The company has a quick ratio of 1.30, a current ratio of 1.30 and a debt-to-equity ratio of 1.50.

United Parcel Service (NYSE:UPS) last issued its quarterly earnings data on Tuesday, January 27th. The transportation company reported $2.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.20 by $0.18. The firm had revenue of $24.50 billion for the quarter, compared to analyst estimates of $23.91 billion. United Parcel Service had a net margin of 6.15% and a return on equity of 40.07%. United Parcel Service’s revenue was down 3.2% on a year-over-year basis. During the same period in the previous year, the firm earned $2.75 EPS. As a group, research analysts anticipate that United Parcel Service will post 7.95 earnings per share for the current year.

Hedge Funds Weigh In On United Parcel Service

A number of institutional investors and hedge funds have recently added to or reduced their stakes in UPS. Westbourne Investments Inc. grew its holdings in shares of United Parcel Service by 1.2% during the fourth quarter. Westbourne Investments Inc. now owns 7,876 shares of the transportation company’s stock worth $781,000 after purchasing an additional 91 shares during the last quarter. Cornerstone Wealth Group LLC lifted its stake in United Parcel Service by 3.9% in the second quarter. Cornerstone Wealth Group LLC now owns 2,557 shares of the transportation company’s stock valued at $258,000 after buying an additional 97 shares during the last quarter. Webster Bank N. A. boosted its holdings in shares of United Parcel Service by 16.7% in the fourth quarter. Webster Bank N. A. now owns 698 shares of the transportation company’s stock valued at $69,000 after acquiring an additional 100 shares during the period. Peoples Financial Services CORP. increased its holdings in shares of United Parcel Service by 2.5% in the 4th quarter. Peoples Financial Services CORP. now owns 4,030 shares of the transportation company’s stock valued at $400,000 after acquiring an additional 100 shares during the period. Finally, Tema Etfs LLC raised its position in United Parcel Service by 0.8% in the 4th quarter. Tema Etfs LLC now owns 12,999 shares of the transportation company’s stock valued at $1,289,000 after purchasing an additional 101 shares during the last quarter. 60.26% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting United Parcel Service

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

• Positive Sentiment: Q4 beat and upbeat 2026 guide — UPS posted $24.5B in Q4 revenue and adjusted EPS above estimates; it guided 2026 revenue to $89.7B, above Street consensus, driven by stronger international margins and higher-yield package mix. This is the main driver lifting the stock. Article Title
• Positive Sentiment: Higher, reliable cash return — UPS declared a quarterly dividend of $1.64 per share (annualized yield ~6.1%), ex-dividend Feb. 17, supporting income-focused investor demand and providing a valuation floor relative to peers.
• Positive Sentiment: Analyst/institutional tone turning constructive — MarketBeat and other outlets note institutional accumulation, analyst upgrades and a narrative that UPS is transitioning to higher-margin, targeted growth areas, which reinforces the post-earnings rally. Article Title
• Positive Sentiment: Unusual options activity — a notable uptick in call buying (about 63,994 calls) suggests some traders are positioning for further upside after the beat/guidance.
• Neutral Sentiment: Strategic shift in volume mix — UPS is deliberately reducing low-margin Amazon volume and refocusing on healthcare, cross-border and B2B, which should improve long-term mix but may depress near-term top-line growth during the transition. Article Title
• Neutral Sentiment: Q4 included notable one-time charges — GAAP results reflect charges (aircraft retirement etc.) that reduced headline EPS; adjusted results beat, so investors must judge how recurring benefits offset one-offs. Article Title
• Negative Sentiment: Large job cuts and restructuring risk — UPS will eliminate up to 30,000 operational roles in 2026 (on top of ~48,000 cuts in 2025) as it unwinds work for Amazon and retools its network; this underscores the cost and execution risk of the separation and could pressure operations and near-term sentiment. Article Title
• Negative Sentiment: Scale and execution questions remain — repeated large layoffs and the Amazon unwind highlight structural challenges; if volume declines or execution slips, margins and growth could be weaker than management expects.

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.