US Postal Service UPS Stock 5% Lower on Store Closure, While S&P 500 Gains
The situation is looking bleak for UPS stock, which is down more than 50% since 2022 and lost another 5% today after news of closing facilities in Kansas.
UPS Stock Struggles Amid Long-Term Decline
United Parcel Service (UPS) has been on a steady downtrend for over three years, with its stock peaking at $233 in January 2022. By late January 2025, the price had fallen more than 20% to $110, following a mixed Q4 earnings report. While UPS exceeded expectations in most key areas, operating income fell, raising concerns among investors.
For Q4 2024, UPS reported earnings of $2.75 per share, surpassing the Zacks Consensus Estimate of $2.52 and up from $2.47 per share a year earlier. In the previous quarter, analysts had expected earnings of $1.65 per share, but UPS outperformed with $1.76, delivering a 6.67% surprise. Despite these positive figures, the company faced challenges, including a major restructuring of its partnerships.
UPS Cuts Ties with USPS and Reduces Amazon Volume
In an effort to cut costs, UPS reached an agreement with Amazon (AMZN) to reduce package volume by over 50% by the second half of 2026. The company also announced it would end its collaboration with the United States Postal Service (USPS) for last-mile delivery of SurePost packages, a move expected to save approximately $1 billion in expenses.
Despite a brief price recovery in February, UPS stock was rejected at the 50-day SMA (yellow) and resumed its downward trend in March. Yesterday, shares closed at $115.80, reflecting a slight 0.61% gain from the previous day.
UPS Stock Falls 5% on News of Facility Closures
Although the broader stock market saw gains today—led by the Nasdaq and S&P 500—UPS stock tumbled 5% following reports of facility closures. The stock is now trading near its January lows, just under $110.
On March 25, UPS’s U.S. media relations manager, Karen T. Hill, confirmed the company’s plans to shut down two facilities in Kansas as part of an ongoing “network optimization” study launched in January. The Dodge City site at 2601 East Wyatt Earp Building will close on May 20, while the Lawrence facility at 331 Northeast Industrial Lane will shut down on June 17.
With these closures and restructuring efforts, UPS is attempting to streamline operations, but investors remain cautious, as reflected in today’s sharp decline in stock price.
S&P 500 Live Chart
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals