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

United Parcel Service, Inc. (NYSE:UPS) was the recipient of unusually large options trading activity on Friday. Stock traders purchased 74,917 call options on the stock. This represents an increase of approximately 200% compared to the typical volume of 24,960 call options.

United Parcel Service Stock Down 1.0%

United Parcel Service stock traded down $1.01 during midday trading on Friday, reaching $104.53. The stock had a trading volume of 4,226,562 shares, compared to its average volume of 5,805,008. The company has a fifty day moving average price of $108.88 and a two-hundred day moving average price of $106.51. United Parcel Service has a 12 month low of $82.00 and a 12 month high of $122.41. 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 company has a market capitalization of $88.85 billion, a P/E ratio of 19.43, a PEG ratio of 1.91 and a beta of 1.06.

United Parcel Service (NYSE:UPS) last announced its quarterly earnings results on Tuesday, July 28th. The transportation company reported $1.76 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.65 by $0.11. The business had revenue of $22.83 billion for the quarter, compared to analyst estimates of $21.86 billion. United Parcel Service had a return on equity of 37.50% and a net margin of 5.08%.The company’s quarterly revenue was up 7.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.55 earnings per share. United Parcel Service has set its FY 2026 guidance at 7.220-7.220 EPS. As a group, equities analysts expect that United Parcel Service will post 7.22 EPS for the current fiscal year.

United Parcel Service Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders of record on Monday, August 17th will be issued a dividend of $1.64 per share. The ex-dividend date is Monday, August 17th. This represents a $6.56 annualized dividend and a yield of 6.3%. United Parcel Service’s dividend payout ratio is presently 121.93%.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on UPS. Weiss Ratings lowered shares of United Parcel Service from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Monday, August 3rd. Citizens Jmp assumed coverage on shares of United Parcel Service in a report on Wednesday, July 15th. They issued a “market perform” rating on the stock. BMO Capital Markets upped their price target on shares of United Parcel Service from $110.00 to $115.00 and gave the company a “market perform” rating in a research report on Wednesday, July 29th. Citigroup increased their price target on United Parcel Service from $127.00 to $132.00 and gave the stock a “buy” rating in a report on Thursday, July 9th. Finally, Stifel Nicolaus lifted their price objective on 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 research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $117.41.

Institutional Investors Weigh In On United Parcel Service

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. increased its holdings in United Parcel Service by 1.8% during the 4th quarter. Vanguard Group Inc. now owns 68,496,420 shares of the transportation company’s stock worth $6,794,160,000 after purchasing an additional 1,218,432 shares in the last quarter. State Street Corp boosted its position in shares of United Parcel Service by 3.3% during the fourth quarter. State Street Corp now owns 32,092,627 shares of the transportation company’s stock valued at $3,183,268,000 after buying an additional 1,029,377 shares during the last quarter. Charles Schwab Investment Management Inc. grew its holdings in United Parcel Service by 3.3% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 27,142,759 shares of the transportation company’s stock worth $2,692,290,000 after buying an additional 856,125 shares in the last quarter. Geode Capital Management LLC grew its holdings in United Parcel Service by 1.4% during the fourth quarter. Geode Capital Management LLC now owns 17,154,091 shares of the transportation company’s stock worth $1,703,291,000 after buying an additional 240,253 shares in the last quarter. Finally, Victory Capital Management Inc. raised its position in United Parcel Service by 72.9% in the 4th quarter. Victory Capital Management Inc. now owns 13,818,314 shares of the transportation company’s stock valued at $1,370,639,000 after buying an additional 5,826,824 shares during the last quarter. 60.26% of the stock is owned by institutional investors.

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.