UPS Dips Below $94 and Has a 7% Dividend Yield: Time to Buy?
The company faces a delicate balancing act in terms of raising prices and managing volumes in the face of rising costs.
The United Parcel Service (UPS) stock price has fallen below $94, resulting in a dividend yield of nearly 7%. This could be an appealing entry point for investors seeking passive income. However, the decision to buy or avoid the stock remains uncertain, with Wall Street analysts divided on UPS. Goldman Sachs has recently upgraded the stock to a buy rating with a price target of $132, while Bank of America has lowered its price target to $108 and maintained a neutral rating.
The decline in UPS's stock is partly due to the company voluntarily reducing its delivery volume for Amazon by 50% over the next two years. This "glide down" was completed by June, and CFO Brian Dykes expects an average daily volume decline of single digits in the U.S. segment due to seasonal factors and the impact of the Amazon glide down.
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