There's room for more analysts to turn bearish
Barclays downgraded United Parcel Service, Inc. (NYSE:UPS) to "underweight" from "equal weight." The analyst in question cited increased competition from Amazon.com (AMZN), as well as risks associated with earnings. At last glance, UPS is down 1.9% to trade at $133.32.
Barclays could inspire other firms to shift their stance. Coming into today, 12 of 25 analysts in coverage called the security a "strong buy." Plus, the 12-month consensus target price of $144.85 is an 8.2% premium to current levels.
UPS is once again facing resistance at the $137 level, which also acted as a ceiling in late September. While the shares have bounced off their Aug. 8, four-year low of $123.12, they have failed to conquer long-term pressure at the 40-day moving average. The stock is now down 13.5% for 2024, and slated to report earnings before the open, Thursday, Oct.24.
United Parcel Service stock's 10-day call/put volume ratio of 4.28 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 97% of readings. An unwinding of this optimism could pressure shares even lower.
Bears are already chiming in, with 6,338 puts exchanged already, which is eight times the volume typically seen at this point. The most active contract by far is the November 130 put.