UPS shares decline 0.92%, options sentiment mixed with light volume and increased volatility

UPS shares are down 0.92% near $86.99, with options volume relatively light at 32k contracts traded. Calls lead puts for a put/call ratio of 0.25, compared to a typical level of 0.71. Implied volatility dropped 0.25 to 26.51, and put-call skew flattened, suggesting a modestly bullish tone.

Drexel Morgan & Co. recently disclosed a significant purchase of United Parcel Service (UPS) shares, marking a bullish move by the investment firm. According to the latest SEC filing dated Aug. 12, 2025, Drexel Morgan acquired 100,000 UPS shares, valued at approximately $9.86 million, in the second quarter of 2025 [1].

The transaction, which represented 1.7502% of the fund's 13F reportable assets as of Q2 2025, increased Drexel Morgan's UPS stake to 309,765 shares, valued at $27.08 million as of August 12, 2025. This position now constitutes 4.8% of the firm's $563.16 million reportable equity assets [1].

UPS shares were priced at $87.43 as of Aug. 12, down 29.4% over the one-year period and trailing the S&P 500 by 47.2 percentage points over the past year. The stock's dividend yield stood at 7.48% as of August 12, with a forward P/E ratio (FY2026) of 11.91 and an EV/EBITDA, TTM of 11.35 [1].

In recent market developments, UPS has faced mixed signals from analysts and investors. While the company boasts strong fundamentals, with a 9.24 score, its technical indicators are weak, scoring a 4.45. Institutional and retail investors have exhibited caution, with outflows seen across all investor categories, including large, extra-large, and block investors [2].

The logistics sector has seen various moves, including Toppoint Holdings' strategic MOU with Chinese air cargo leader Jinyangcheng and DP World's Brazil expansion. These developments could reshape competitive dynamics in the sector [2].

Analysts maintain a consistent outlook, with an average rating of 3.70, though the current price trend shows a 0.52% rise, aligning with moderate market expectations. Key risks include overvalued PCF (253.12), weak cash flow growth (-49.25% YoY), and conflicting technical signals requiring clearer directional breakouts [2].

On the options market, UPS shares are down 0.92% near $86.99, with options volume relatively light at 32k contracts traded. The put/call ratio stands at 0.25, compared to a typical level of 0.71, while implied volatility dropped to 26.51, and the put-call skew flattened, suggesting a modestly bullish tone.

In summary, Drexel Morgan's increased stake in UPS signals a bullish stance by the investment firm. However, mixed signals from analysts and investors, along with recent market developments, warrant caution. Investors should closely monitor UPS's performance and the evolving competitive landscape in the logistics sector.

References:
[1] https://www.nasdaq.com/articles/drexel-morgan-takes-bullish-position-ups
[2] https://www.ainvest.com/news/stock-analysis-united-parcel-outlook-navigating-mixed-signals-market-volatility-2508/