United Parcel Service (NYSE:UPS) Stock Sees Unusually High Call Option Buying

United Parcel Service, Inc. (NYSE:UPS) was the recipient 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 average volume of 21,030 call options.

United Parcel Service News Roundup

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 research analysts recently commented on the stock. Wall Street Zen downgraded shares of United Parcel Service from a “buy” rating to a “hold” rating in a research note on Saturday, September 19th. Susquehanna increased their price target on shares of United Parcel Service from $118.00 to $120.00 and gave the stock a “neutral” rating in a research note on Wednesday, July 29th. Stephens reduced their price target on United Parcel Service from $135.00 to $130.00 and set an “overweight” rating on the stock in a research note on Wednesday, July 29th. Raymond James Financial upped their price target on United Parcel Service from $127.00 to $131.00 and gave the stock a “strong-buy” rating in a research note on Wednesday, July 29th. Finally, JPMorgan Chase & Co. decreased their price objective on United Parcel Service from $118.00 to $115.00 and set a “neutral” rating for the company in a report on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, eleven have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $115.87.

United Parcel Service Stock Down 0.4%

NYSE:UPS traded down $0.39 during mid-day trading on Friday, hitting $97.44. 5,511,941 shares of the company’s stock were exchanged, compared to its average volume of 5,227,132. United Parcel Service has a one year low of $85.24 and a one year high of $122.41. The company has a debt-to-equity ratio of 1.58, a current ratio of 1.18 and a quick ratio of 1.18. The business has a fifty day moving average price of $99.38 and a 200 day moving average price of $103.54. The company has a market cap of $82.90 billion, a PE ratio of 18.11, a P/E/G ratio of 1.80 and a beta of 1.07.

United Parcel Service (NYSE:UPS) last announced its quarterly earnings data on Tuesday, July 28th. The transportation company reported $1.76 earnings per share for the quarter, topping analysts’ consensus estimates of $1.65 by $0.11. United Parcel Service had a net margin of 5.08% and a return on equity of 37.50%. The business had revenue of $22.83 billion for the quarter, compared to analysts’ expectations of $21.86 billion. During the same quarter in the prior year, the company earned $1.55 earnings per share. The business’s revenue 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. Equities analysts predict that United Parcel Service will post 7.19 EPS for the current year.

United Parcel Service Dividend Announcement

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

Hedge Funds Weigh In On United Parcel Service

Several institutional investors and hedge funds have recently modified their holdings of the stock. V Square Quantitative Management LLC grew its position in United Parcel Service by 2.8% during 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 purchasing an additional 677 shares during the last quarter. Comprehensive Financial Consultants Institutional Inc. raised its holdings in United Parcel Service by 3.0% in the third quarter. Comprehensive Financial Consultants Institutional Inc. now owns 11,778 shares of the transportation company’s stock worth $1,101,000 after buying an additional 338 shares during the last quarter. Wealth Enhancement Trust Services Inc. lifted its stake in shares of United Parcel Service by 802.1% in 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. Bangor Savings Bank lifted its stake in shares of United Parcel Service by 2.7% in the third quarter. Bangor Savings Bank now owns 4,492 shares of the transportation company’s stock worth $420,000 after buying an additional 116 shares in the last quarter. Finally, Rockland Trust Co. lifted its stake in shares of United Parcel Service by 3.9% in the third quarter. Rockland Trust Co. now owns 10,801 shares of the transportation company’s stock worth $1,009,000 after buying an additional 408 shares in the last quarter. 60.26% of the stock is currently owned by institutional investors.

About United Parcel Service

United Parcel Service, Inc (NYSE: UPS) is a global logistics and package delivery company that provides transportation and supply chain management services to businesses and consumers. Its operations include the pickup, transportation and delivery of packages, documents and freight through ground, air and international networks.

UPS also offers logistics and supply chain solutions, including warehousing, distribution, customs brokerage, contract logistics, returns management and specialized services for healthcare and other industries.