United Parcel Service (UPS) Options

UPS:

https://www.sec.gov/files/litigation/admin/2025/34-102365.pdf

Two months ago, I tried buying something from Walgreens.com and couldn't. Was told that portion of their site was nonfunctional. That should have been a sign to dump WBA stock which is in my kids' accounts. Held, but certainly not buying more.

Both kids own WBA and UPS, but fortunately tons of SPY and QQQ.

Saw that this morning, sold for a loss this a.m., currently looking at Grainger or Caterpillar. May all your trades/investments be profitable.🍷
.

Marker:

UPS
$114.34 -19.44 (-14.53%)
Volume: 35,091,808

Market does not like the reduction in amazon deliveries going forward, which reduces the 2025 revenue projections. But the CEO stated that the amazon deliveries dilute margins:
UPS to cut Amazon deliveries by more than 50% by 2026

*

CEO Tome says Amazon business dilutes margins

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CFO says SurePost, other e-commerce delivery is more lucrative than that of Amazon

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UPS aims to slash $1 billion in costs this year

UPS reports earnings this morning. Long term holding of mine.

United Parcel Service, Inc. $UPS Total Debt (mrq) $26.24B Book Value Per Share (mrq) $19.76

https://www.fleetowner.com/emissions-efficiency/article/21703018/quietly-plug-power-slips-in-two-big-fuel-cell-advancements $UPS

UPS 10Q due Oct 24

So where is this stock headed

UPS 10Q due JULY23

Nearing 4 year low

Marker:
UPS
$136.86 2.45 (1.82%)
Volume: 4,077,754

UPS 10 Q due 4/23

UPS outlines plans to close at least 200 facilities

...UPS plans to shutter certain facilities, and transform others into automated hubs.

By end of the “initial phase,” Tomé said UPS would have “400 buildings that are fully automated.”

27 March 2024
https://www.wsws.org/en/articles/2024/03/28/wfxk-m28.html

https://twitter.com/jerrywhiteSEP/status/1773184344225431650?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1773184344225431650%7Ctwgr%5Ec4884c8af184ab0ad7853bff78476eb8834d6f19%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.wsws.org%2Fen%2Farticles%2F2024%2F03%2F28%2Fwfxk-m28.html

UPS Announces Massive Layoffs
https://www.zerohedge.com/markets/great-job-biden-ups-plans-12000-layoffs-citing-higher-union-labor-costs

Completely surprised UPS raised the dividend by $.01 even with the negativity of the year end results and announcement of 12k employee layoffs.

stock needs an earnings beat. the question is by how much?

UPS earnings fall as company warns of economic headwinds ahead

By Chris Isidore, CNN

Updated 8:12 AM EDT, Thu October 26, 2023
—
UPS reported sharply lower earnings in the third quarter and said it expects lower revenue and thinner profit margins ahead. But it cited a slowing global economy, not its recent labor issues, for its gloomy forecast.

[....]

UPS is something of an economic bellwether, as its trucks move an estimated 6% of US gross domestic product and 3% of global GDP, the broadest measure of economic activity.

Source:
https://www.cnn.com/2023/10/26/business/ups-earnings-fall-sees-economic-headwinds-ahead/index.html

Marker:
$154.13 2.52 (1.7%)
Volume: 1,988,406

*This report is a month old but still relevant as the trucking giants' demand for services entering their peak season have not changed.

Amazon has got a terrible problem with their deliver fleet. At least in my area.

Just the other day we got 3 packages delivered. One by UPS, two by prime. The two by prime were delivered in two different trucks

Driver even commented how he didn't understand why it took two separate trucks. He also stated it happens all the time

Complete waste of resources, as I see it. As a former logistic manager I see others issues as well.

They would be better off leaving this to UPS or FedEx, once again in my opinion.

Marker:

UPS

$147.85 -1.47 (-0.98%)
Volume: 3,565,678

UPS offers pilot buyout as demand falters
REUTERS

LOS ANGELES (Reuters) -United Parcel Service ( UPS ) on Thursday said it has offered early retirement to some pilots as the world's biggest package delivery firm grapples with a weak air freight market and rising labor costs.

(con't)

Going way lower. Wouldn't be surprised this new contract bankrupts them. Long amazon!!!!! They'll be much cheaper than UPS now

They’re pricing all retail out of this universe.. Fed Ex and especially DHL far cheaper for the same service.

Absolutely. Unavoidable step.

UPS is always raising its prices. Always.

UPS is always raising its prices. Always.

This deal will also force UPS to raise its prices for shipping services.

UPS Teamsters local unions endorse agreement with delivery giant UPS
REUTERS - 6:46 PM ET 7/31/2023

(Reuters) - The Teamsters local unions, which represent 340,000 workers at United Parcel Service ( UPS ), voted 161-1 on Monday to endorse the tentative agreement reached with the delivery giant on July 25.

The agreement, estimated to be at $30 billion by the union, provides historic wage increases, one more paid holiday and air conditioning in the company's ubiquitous brown delivery trucks.

It also eliminates a two-tier pay system and forced overtime for delivery drivers.

(con't)

UPS labor deal could pressure delivery firm's annual outlook, say analysts
BY Aishwarya Nair, REUTERS - 7/26/2023

(Reuters) - A tentative labor deal between United Parcel Service ( UPS ) and the Teamsters union on Tuesday could pressure full-year outlook for the world's largest parcel delivery firm, according to analysts.

The five-year contract, which the head of the union claims to be worth $30 billion in new money, covers about 340,000 U.S. employees and provides wage increases, and one more paid holiday among other benefits.

(con't)

Strike has been averted. Union and UPS have reached a deal!!

Tuesday is an important day for UPS.
They will present a new proposal to the union. Let's see how the union President responds to it.
The only sticking point in the negotiations is the part time pay for the warehouse workers.

Brinkmanship, for sure.

The Union President is in Washington today, trying to convince politicians that the union requests are reasonable.
Good insight, Craig.

Keep us posted here and on my board, if you would.
MG

That is why I do not believe this strike will happen. I believe the union President is making a lot of noise and self promoting the union to make a move to Amazon next.

UPS strike in US could be costliest in at least a century
BY Lisa Baertlein, REUTERS

https://stockcharts.com/h-sc/ui?s=UPS

(Reuters) -A threatened U.S. strike at United Parcel Service ( UPS ) could be "one of the costliest in at least a century," a think tank specializing in the economic impact of labor actions said on Thursday.

Potential losses from a 10-day strike at the world's biggest package delivery company could top $7 billion, according to an estimate from Michigan-based Anderson Economic Group (AEG). That number includes UPS customer losses of $4 billion and lost direct wages of more than $1 billion.

(con't)

UPS Quarterly Dividends

Date Dividends
May 12, 2023 1.62 Dividend
Feb 17, 2023 1.62 Dividend
Nov 10, 2022 1.52 Dividend
Aug 12, 2022 1.52 Dividend
May 13, 2022 1.52 Dividend
Feb 18, 2022 1.52 Dividend
Nov 19, 2021 1.02 Dividend
Aug 20, 2021 1.02 Dividend
May 21, 2021 1.02 Dividend
Feb 19, 2021 1.02 Dividend
Nov 12, 2020 1.01 Dividend
Aug 21, 2020 1.01 Dividend
May 22, 2020 1.01 Dividend
Feb 24, 2020 1.01 Dividend
Nov 15, 2019 0.96 Dividend
Aug 16, 2019 0.96 Dividend
May 17, 2019 0.96 Dividend
Feb 25, 2019 0.96 Dividend
Nov 16, 2018 0.91 Dividend
Aug 17, 2018 0.91 Dividend

Yes. Great news bar. We have a lot of UPS in my wife's retirement account, and all dividends have been automatically reinvested for years.

UPS raises dividend to boost implied yield above 3.6%, sets new $5 billion stock buyback program

"United Parcel Service Inc. (UPS) raised its quarterly dividend by 6.6%, to $1.62 a share from $1.52 a share, and set a new $5 billion share repurchase program. The package delivery giant’s new dividend will be payable March 10 to shareholders of record on Feb. 21. Based on Monday’s stock closing price of $176.97, the new annual dividend rate implies a dividend yield of 3.66%, which compares with rival FedEx Corp.’s (FDX) current yield of 2.50% and the implied yield for the S&P 500 (SPX) of 1.69%.

https://finance.yahoo.com/m/72c0441e-b067-3de2-a815-5e66d4356c56/ups-raises-dividend-to-boost.html

Long week ahead and no one wants to hold the share so traders are dumping now
After break 177 if this does not hold 160 then it will go to 115 or 100
I am watching now

Fantastic quarter for UPS in this current environment. Still a great sizable long-term holding for my wife and me.

UPS beats earnings estimates as higher prices drive profit

https://finance.yahoo.com/video/ups-beats-earnings-estimates-higher-132114275.html

Yes, sustainable, after 48% div increase.

UPS CEO increases her pay

This month, as hundreds of its Philly-area workers receive a pay cut, UPS is reporting record share prices, and quarterly earnings that nearly doubled from 2020 to 2021 for a profit of $3.9 billion.

“They’re not hurting,” Hooker Jr. said at the rally. “The CEO gets on TV and says they’re a year ahead of schedule while making $14.4 million herself. So you’re gonna take from the people that made those profits available?”

UPS is a strong buy! Cutting workers wages from $19 to $15 an hour will save company millions!!

UPS cuts wages 20% for hundreds of part-time Philly workers, taking them by surprise

The teamsters union says the pay reduction was illegal.

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Workers and labor advocates protested a UPS wage cut on Oregon Avenue 

JORDAN LEVY / BILLY PENN

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Jordan Levy

Yesterday, 10:15 a.m.

Two thousand UPS workers in the Philadelphia region have signed onto a demand to raise wages after part-time employees were hit with an unannounced pay cut.

A Thursday morning protest organized by the Teamsters 623 Local union drew about 75 workers, elected officials, and organizers to the South Philly UPS complex. The Oregon Avenue shipping center employs more than 1,350 people across customer service, drivers, and warehousing, according to a union spokesperson.

Shamar Hudson, a warehouse worker getting off his shift as the rally began, told Billy Penn there wasn’t any warning from management before his pay was slashed from $19 to $15 an hour

UPS "CEO says results are sustainable"

"UPS CEO Carol Tome says the shipping giant is firing on all 12 cylinders as it focuses on more profitable packages and feels the tailwinds of greater online shopping and increased shipments of health care products such as COVID-19 vaccines.

"We think they [the results] are sustainable," Tome told Yahoo Finance Live in an exclusive interview."

"On Tuesday, UPS smashed analyst sales and profit forecasts on the back of a strong holiday shopping season online. The company's operating profit margins expanded in all business segments, in part fueled by Tome's strategy to zero in on things UPS does well and trim other areas. "

https://finance.yahoo.com/news/ups-stock-rips-to-a-record-high-ceo-says-results-are-sustainable-183455444.html

+14.3% thus far today and set a new 52-week high. The dividend boost is huge at 48% increase. We have all of our dividends automatically reinvested in our UPS position at no cost to us.

UPS boosts dividend by 48%, stock rises. Very welcome amid a weak stock market.

https://finance.yahoo.com/video/ups-boosts-dividend-48-stock-145839790.html

It's going to be a UPS kind of day.

$UPS looks like it's about to test the 50-day MA again.

$UPS = well run business. WalMart is projecting record XMAS sales. Customers have lots of cash saved up from CoVid; spending more on goods because they can't spend on services (restaurants, vacays, etc.), i.e., stuff that increasingly requires a delivery service. Omicron is on the way. All very bullish things for UPS's business model.

MFool: Why does Buffett own such a tiny_UPS_position?

"3 Stocks Warren Buffett Should Use His $149 Billion Stash to Buy"

"Berkshire Hathaway technically owns shares of package delivery giant UPS. But the stake makes up less than a hundredth of a percent of its portfolio. UPS is Buffett's smallest stock holding, but there are many reasons it deserves to be one of his largest."

https://www.fool.com/investing/2021/11/13/3-stocks-warren-buffett-should-use-his-149-billion/

Quite a surprise! Another reason I (and Charlie) say "The More You Trade, The More You Lose." Now, if BRK would just move up a bit..."