United Parcel Service Posts $1.74 EPS Beat; Truist Targets $120
United Parcel Service reported third-quarter EPS of $1.74, beating consensus by $0.43 on $21.42 billion in revenue, though sales fell 3.7% year-over-year and net margin reached 6.15%. Econ Financial raised its stake 118.5% to 36,578 shares worth $3.06 million—UPS’s 21st largest holding—and Truist lifted its price target to $120.
1. Econ Financial Services Boosts UPS Stake Significantly
In the third quarter, Econ Financial Services Corp increased its position in United Parcel Service by 118.5%, acquiring an additional 19,835 shares to reach a total of 36,578 shares. This purchase elevated UPS to the 21st largest holding in Econ’s portfolio, representing 1.5% of its total assets. At the end of the period, the position was valued at approximately $3.06 million, underscoring the firm’s renewed confidence in UPS’s growth prospects within the logistics sector.
2. Other Institutional Adjustments Highlight Steady Interest
Several other institutional investors also modified their UPS holdings over the past two quarters. Cornerstone Wealth Group added 97 shares (a 3.9% increase), Bangor Savings Bank increased its position by 101 shares (1.9%), and Wright Investors Service purchased an extra 104 shares (1.3%). First Dallas Securities and Fortis Capital Advisors each lifted their stakes by roughly 100 shares in the first quarter. Collectively, hedge funds and institutional investors now own 60.26% of UPS shares, reflecting broad, sustained interest in the company’s cash flows and market position.
3. Analysts Update Ratings and Price Targets
Research firms have recently revised their views on UPS. Truist Financial raised its price target from $100 to $120 and maintained a buy recommendation, while UBS Group increased its target to $113 with a buy rating. Conversely, BMO Capital Markets lowered its target to $96 and assigned a market perform rating, and Bank of America trimmed its objective to $81 with an underperform stance. Overall, among analysts covering UPS, one rates it a strong buy, nine a buy, sixteen a hold and four a sell, yielding an average consensus price target of $110.09.
4. Solid Q3 Results and Attractive Dividend Yield
In the quarter ended October, UPS reported earnings per share of $1.74, beating consensus estimates by $0.43, on revenues of $21.42 billion, up from $20.94 billion expected. Although revenue declined 3.7% year-over-year, net margin held at 6.15% and return on equity reached 40.07%. UPS declared a $1.64 quarterly dividend, translating to an annualized yield of 6.6% and a payout ratio just above 100%, signaling management’s commitment to returning cash to shareholders despite cyclical pressures.