Investors Purchase Large Volume of United Parcel Service Call Options (NYSE:UPS)

United Parcel Service, Inc. (NYSE:UPS) was the target of unusually large options trading on Friday. Stock traders bought 32,492 call options on the stock. This represents an increase of approximately 55% compared to the typical daily volume of 21,030 call options.

Hedge Funds Weigh In On United Parcel Service

Several hedge funds have recently made changes to their positions in the business. Onyx Bridge Wealth Group LLC grew its stake in United Parcel Service by 7.6% in the third quarter. Onyx Bridge Wealth Group LLC now owns 7,742 shares of the transportation company’s stock valued at $723,000 after purchasing an additional 550 shares in the last quarter. V Square Quantitative Management LLC raised its holdings in United Parcel Service by 2.8% in the 3rd quarter. V Square Quantitative Management LLC now owns 24,653 shares of the transportation company’s stock valued at $2,304,000 after acquiring an additional 677 shares during the period. Comprehensive Financial Consultants Institutional Inc. boosted its holdings in shares of United Parcel Service by 3.0% during the third quarter. Comprehensive Financial Consultants Institutional Inc. now owns 11,778 shares of the transportation company’s stock worth $1,101,000 after acquiring an additional 338 shares during the period. Wealth Enhancement Trust Services Inc. lifted its holdings in shares of United Parcel Service by 802.1% during the third quarter. Wealth Enhancement Trust Services Inc. now owns 7,857 shares of the transportation company’s stock worth $734,000 after buying an additional 6,986 shares in the last quarter. Finally, Bangor Savings Bank boosted its holdings in United Parcel Service by 2.7% in the 3rd quarter. Bangor Savings Bank now owns 4,492 shares of the transportation company’s stock valued at $420,000 after purchasing an additional 116 shares during the period. 60.26% of the stock is owned by institutional investors.

United Parcel Service Stock Performance

NYSE:UPS opened at $97.44 on Friday. United Parcel Service has a 1 year low of $85.24 and a 1 year high of $122.41. The stock has a market capitalization of $82.90 billion, a P/E ratio of 18.11, a price-to-earnings-growth ratio of 1.80 and a beta of 1.07. The company has a current ratio of 1.18, a quick ratio of 1.18 and a debt-to-equity ratio of 1.58. The firm has a 50 day moving average of $99.38 and a 200-day moving average of $103.54.

United Parcel Service (NYSE:UPS) last posted its quarterly earnings data on Tuesday, July 28th. The transportation company reported $1.76 earnings per share for the quarter, topping the consensus estimate of $1.65 by $0.11. The firm had revenue of $22.83 billion during the quarter, compared to analysts’ expectations of $21.86 billion. United Parcel Service had a net margin of 5.08% and a return on equity of 37.50%. United Parcel Service’s revenue was up 7.6% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.55 EPS. United Parcel Service has set its FY 2026 guidance at 7.220-7.220 EPS. As a group, sell-side analysts anticipate that United Parcel Service will post 7.19 EPS for the current fiscal year.

United Parcel Service Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 3rd. Investors of record on Monday, August 17th were given a $1.64 dividend. The ex-dividend date was Monday, August 17th. This represents a $6.56 annualized dividend and a dividend yield of 6.7%. United Parcel Service’s payout ratio is currently 121.93%.

Trending Headlines about United Parcel Service

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

• Positive Sentiment: UPS opened an approximately $80 million air cargo and package hub at Clark International Airport in the Philippines. The larger facility is intended to improve Asia connectivity, increase service capacity and support global trade, with the company hiring about 600 workers. Larger UPS air hub in Philippines boosts Asia service levels
• Positive Sentiment: UPS is included among transportation companies viewed as likely to beat earnings estimates this season. The bullish case is supported by its recent quarterly performance, when revenue and earnings exceeded consensus expectations, and by analyst expectations for earnings growth. 4 Transportation Stocks Likely to Deliver an Earnings Beat This Season
• Positive Sentiment: A bullish analysis points to double-digit adjusted EPS growth, margin expansion, network optimization using artificial intelligence and a strategic focus on higher-margin healthcare shipments. It also cites company guidance for more than $91 billion in annual revenue and about $8.6 billion in adjusted operating profit. UPS: Fuel Prices Don’t Change The Business
• Neutral Sentiment: Unusually high call-option activity—32,492 contracts, 55% above typical daily volume—signals increased speculative interest, but it does not establish a lasting bullish trend. United Parcel Service options activity
• Negative Sentiment: A bearish analysis rates UPS a sell, citing thin free-cash-flow coverage of its roughly $5.4 billion dividend, high leverage, low margins, wage and diesel inflation, and potentially more expensive debt refinancing. These risks raise questions about dividend sustainability and profitability. UPS: The Dividend Parcel Could Arrive Broken
• Negative Sentiment: Other commentary warns UPS could miss earnings estimates despite appearing potentially undervalued, keeping investors focused on whether operational improvements can offset cost pressures and protect the company’s high-yield dividend. Prediction: UPS Will Miss Estimates

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on UPS. The Goldman Sachs Group boosted their price objective on United Parcel Service from $128.00 to $132.00 and gave the company a “buy” rating in a report on Wednesday, July 29th. Oppenheimer lifted their price target on United Parcel Service from $115.00 to $117.00 and gave the company an “outperform” rating in a report on Wednesday, July 29th. Citizens Jmp assumed coverage on United Parcel Service in a research report on Wednesday, July 15th. They issued a “market perform” rating for the company. Raymond James Financial lifted their target price on shares of United Parcel Service from $127.00 to $131.00 and gave the company a “strong-buy” rating in a research note on Wednesday, July 29th. Finally, Stifel Nicolaus boosted their target price on shares of United Parcel Service from $114.00 to $115.00 and gave the stock a “buy” rating in a research report on Wednesday, July 29th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, eleven have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $115.87.

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.