BofA Global Research downgraded both United Parcel Service Inc (NYSE:UPS) and FedEx Corp (NYSE: FDX) to "underperform" from "neutral," and to "neutral" from "buy," respectively. The brokerage also cut the former's price target to $83 from $91, while the latter saw its price objective lowered to $240 from $245. The analyst cited the ending of tariff exemptions for small packages.
UPS was last seen up 0.2% at $84.06, but earlier slipped to a five-year low of $82. The security has been struggling with overhead pressure from the 20-day moving average since its July bear gap, and despite a floor of support at $80, it carries a 33.2% deficit for 2025.
United Parcel Service stock's 10-day call/put volume ratio of 6.03 at the International Securities (ISE), Cboe Options (CBOE) and NASDAQ OMX PHLX (PHLX) ranks higher than 94% of annual readings. This indicates options traders are more bullish than usual.
FDX was last seen up 1.8% to trade at $229.82, brushing off today's bear note as the $220 region continues to provide support. Overhead pressure at the 220-day trendline has been a constant throughout 2025, though, contributing to the stock's 18.34% year-to-date deficit.
Options traders are targeting FDX today, with 3,805 puts traded so far -- triple the intraday average amount -- compared to 1,781 calls. The most popular contract is the weekly 9/12 220-strike put.
