United Parcel Service (NYSE:UPS) Shares Climb 1% – Still a Buy?

United Parcel Service, Inc. (NYSE:UPS) traded up 1% during mid-day trading on Tuesday. The company traded as high as $99.78 and last traded at $98.4510. Approximately 3,629,784 shares were traded during mid-day trading, a decline of 35% from the average session volume of 5,607,721 shares. The stock had previously closed at $97.46.

More United Parcel Service News

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

• Positive Sentiment: UPS has been charging more per package while pursuing sizeable efficiency-related savings and updating its full-year adjusted operating-profit outlook. These measures support the company’s strategy of improving profitability even as shipment volumes weaken. United Parcel Service Just Gave Investors Something To Think About
• Positive Sentiment: Sanford C. Bernstein maintained an “outperform” rating and lowered its price target modestly to $127, implying substantial upside from recent levels. UPS Price Target Update
• Positive Sentiment: Some analysts expect UPS to beat third-quarter earnings estimates, citing pricing actions, cost controls and a greater focus on higher-margin business as potential supports. UPS Expected to Beat Earnings Estimates
• Neutral Sentiment: UPS is scheduled to report third-quarter results on October 27. Investors will watch adjusted operating margin, U.S. package volume, management’s outlook and progress toward cost savings. One Number Every UPS Investor Should Watch in Q3 Earnings
• Negative Sentiment: Average daily U.S. package volume previously declined to 16.0 million from 16.55 million, raising concerns that pricing gains may not fully compensate for lost shipments. Rising fuel costs add another pressure ahead of earnings. UPS Volume Is Still Falling
• Negative Sentiment: The stock’s elevated dividend yield has attracted income investors but also highlights concerns about earnings durability and dividend safety if volumes and cash flow remain under pressure. UPS Charges More Per Package, but Is the Dividend Safe?

Wall Street Analysts Forecast Growth

Several analysts have commented on the stock. Susquehanna boosted 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, July 29th. Citigroup cut their price target on shares of United Parcel Service from $132.00 to $122.00 and set a “buy” rating on the stock in a report on Wednesday, October 7th. Wall Street Zen lowered shares of United Parcel Service from a “buy” rating to a “hold” rating in a research note on Saturday, September 19th. The Goldman Sachs Group lifted their price objective on shares of United Parcel Service from $128.00 to $132.00 and gave the company a “buy” rating in a research note on Wednesday, July 29th. Finally, Truist Financial decreased their price objective on shares of United Parcel Service from $130.00 to $115.00 and set a “buy” rating for the company in a report on Wednesday, October 7th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, eleven have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $115.70.

United Parcel Service Stock Up 1.0%

The stock has a market cap of $84.66 billion, a P/E ratio of 14.18, a PEG ratio of 1.82 and a beta of 1.07. The company has a quick ratio of 1.18, a current ratio of 1.18 and a debt-to-equity ratio of 1.58. The business has a 50-day simple moving average of $99.03 and a 200-day simple moving average of $103.61.

United Parcel Service (NYSE:UPS) last announced its quarterly earnings results on Tuesday, July 28th. The transportation company reported $1.76 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 company had revenue of $22.83 billion for the quarter, compared to the consensus estimate of $21.86 billion. During the same quarter last year, the company posted $1.55 earnings per share. The company’s revenue for the quarter 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. Analysts expect that United Parcel Service, Inc. will post 7.19 EPS for the current year.

United Parcel Service Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Investors of record on Monday, August 17th were issued a dividend of $1.64 per share. This represents a $6.56 annualized dividend and a dividend yield of 6.6%. The ex-dividend date of this dividend was Monday, August 17th. United Parcel Service’s dividend payout ratio is currently 121.93%.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Legacy Wealth Managment LLC ID boosted its holdings in United Parcel Service by 48.6% during the first quarter. Legacy Wealth Managment LLC ID now owns 309 shares of the transportation company’s stock valued at $30,000 after acquiring an additional 101 shares during the period. Markowski Investments acquired a new stake in shares of United Parcel Service in the second quarter valued at about $30,000. Allied Private Wealth LLC bought a new position in shares of United Parcel Service in the second quarter worth about $34,000. Grove Bank & Trust increased its stake in shares of United Parcel Service by 49.8% in the second quarter. Grove Bank & Trust now owns 379 shares of the transportation company’s stock worth $41,000 after purchasing an additional 126 shares during the period. Finally, Community Financial Services Group LLC increased its stake in shares of United Parcel Service by 170.1% in the second quarter. Community Financial Services Group LLC now owns 370 shares of the transportation company’s stock worth $41,000 after purchasing an additional 233 shares during the period. Institutional investors own 60.26% of the company’s stock.

United Parcel Service Company Profile

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.