United Parcel Service (NYSE:UPS) Shares Gap Up on Better-Than-Expected Earnings

United Parcel Service, Inc. (NYSE:UPS) shares gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $89.22, but opened at $98.45. United Parcel Service shares last traded at $95.6220, with a volume of 13,058,073 shares changing hands.

The transportation company reported $1.74 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.31 by $0.43. The business had revenue of $21.40 billion during the quarter, compared to analyst estimates of $20.94 billion. United Parcel Service had a net margin of 6.34% and a return on equity of 39.61%. The company’s revenue for the quarter was down 3.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.76 earnings per share. United Parcel Service has set its Q4 2025 guidance at EPS.

United Parcel Service Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Stockholders of record on Monday, August 18th were given a $1.64 dividend. The ex-dividend date was Monday, August 18th. This represents a $6.56 dividend on an annualized basis and a dividend yield of 6.8%. United Parcel Service’s dividend payout ratio is 97.62%.

Wall Street Analysts Forecast Growth

UPS has been the topic of a number of analyst reports. JPMorgan Chase & Co. reduced their price objective on United Parcel Service from $96.00 to $85.00 and set a “neutral” rating on the stock in a research report on Wednesday, October 8th. BNP Paribas Exane upgraded United Parcel Service from an “underperform” rating to a “neutral” rating and set a $100.00 price target on the stock in a report on Thursday, July 3rd. Susquehanna lowered their price target on shares of United Parcel Service from $110.00 to $100.00 and set a “neutral” rating on the stock in a research report on Wednesday, July 30th. Bank of America cut their price objective on shares of United Parcel Service from $83.00 to $81.00 and set an “underperform” rating for the company in a research report on Friday, September 26th. Finally, Wall Street Zen lowered shares of United Parcel Service from a “hold” rating to a “sell” rating in a report on Saturday, September 20th. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, fifteen have assigned a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat, United Parcel Service has an average rating of “Hold” and an average price target of $108.97.

Insider Activity at United Parcel Service

In other news, CEO Carol B. Tome acquired 11,682 shares of the company’s stock in a transaction dated Friday, August 1st. The stock was acquired at an average cost of $85.67 per share, with a total value of $1,000,796.94. Following the completion of the purchase, the chief executive officer owned 24,718 shares of the company’s stock, valued at $2,117,591.06. This represents a 89.61% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this link. Also, Director Christiana Smith Shi acquired 500 shares of the business’s stock in a transaction that occurred on Friday, August 22nd. The stock was purchased at an average price of $88.17 per share, for a total transaction of $44,085.00. Following the acquisition, the director directly owned 500 shares in the company, valued at approximately $44,085. This trade represents a ∞ increase in their position. The SEC filing for this purchase provides additional information. In the last quarter, insiders purchased 17,182 shares of company stock worth $1,477,382. Insiders own 0.13% of the company’s stock.

Institutional Trading of United Parcel Service

Several hedge funds have recently made changes to their positions in the business. Cornerstone Wealth Group LLC increased its stake in United Parcel Service by 3.9% during the 2nd quarter. Cornerstone Wealth Group LLC now owns 2,557 shares of the transportation company’s stock worth $258,000 after buying an additional 97 shares during the period. Bangor Savings Bank grew its stake in shares of United Parcel Service by 1.9% in the second quarter. Bangor Savings Bank now owns 5,413 shares of the transportation company’s stock worth $546,000 after acquiring an additional 101 shares in the last quarter. First Dallas Securities Inc. increased its position in shares of United Parcel Service by 0.9% during the first quarter. First Dallas Securities Inc. now owns 11,421 shares of the transportation company’s stock worth $1,256,000 after acquiring an additional 102 shares during the period. Fortis Capital Advisors LLC boosted its holdings in United Parcel Service by 3.4% in the first quarter. Fortis Capital Advisors LLC now owns 3,185 shares of the transportation company’s stock valued at $350,000 after purchasing an additional 104 shares during the period. Finally, Wright Investors Service Inc. grew its stake in United Parcel Service by 1.3% during the 2nd quarter. Wright Investors Service Inc. now owns 7,861 shares of the transportation company’s stock worth $793,000 after purchasing an additional 104 shares in the last quarter. Institutional investors and hedge funds own 60.26% of the company’s stock.

United Parcel Service Trading Up 8.2%

The company has a current ratio of 1.32, a quick ratio of 1.32 and a debt-to-equity ratio of 1.51. The company has a market cap of $81.80 billion, a PE ratio of 14.36, a P/E/G ratio of 1.65 and a beta of 1.10. The company has a fifty day simple moving average of $85.75 and a two-hundred day simple moving average of $93.06.

United Parcel Service Company Profile

United Parcel Service, Inc, a package delivery company, provides transportation and delivery, distribution, contract logistics, ocean freight, airfreight, customs brokerage, and insurance services. It operates through two segments, U.S. Domestic Package and International Package. The U.S. Domestic Package segment offers time-definite delivery of express letters, documents, small packages, and palletized freight through air and ground services in the United States.