Centric Wealth Management Lightens Its UPS Holding

Centric Wealth Management reported selling United Parcel Service(NYSE:UPS) shares totaling an estimated $4.01 million, based on the quarterly average price for Q2 2025, according to its Aug. 12, 2025, SEC filing.

Key points

Sold 40,712 UPS shares during Q2 2025; estimated trade value of ~$4.01 million based on the quarterly average price

Transaction represents 1.0% of 13F reportable assets under management (rounded from 0.9579% for the period ended June 30, 2025)

Post-trade UPS stake: 301,818 shares valued at $26,158,564 as of August 12, 2025

UPS remains the fund's largest holding, now accounting for 6.2% of assets under management as of June 30, 2025

What happened

Centric Wealth Management disclosed a reduction in its position in United Parcel Service(NYSE:UPS), selling 40,712 shares during the quarter. The estimated value of the transaction was $4.01 million, calculated using the average closing price for the quarter. Following the sale, Centric Wealth Management reported holding 301,818 UPS shares as of June 30, 2025, as detailed in its Aug. 12, 2025, SEC filing.

What else to know

The sale reduced UPS's share of the fund's reportable assets to 6.2% as of August 12, 2025

Top holdings after the filing:

• UPS: $26.39 million (6.2% of AUM as of August 12, 2025)
• VOO: $19.94 million (4.8% of AUM as of June 30, 2025)
• AAPL: $15.24 million (3.64% of AUM as of June 30, 2025)
• UNH: $13.89 million (3.3% of AUM as of June 30, 2025)
• HFSI: $12.57 million (3.0% of AUM as of June 30, 2025)

UPS shares were priced at $87.43 as of August 12, 2025, down 29.42% over the past year and lagging the S&P 500 by 47.17 percentage points (based on market data as of August 12, 2025).

Dividend yield: 7.48% as of August 12, 2025; Forward P/E (FY1 2026): 11.91; EV/EBITDA (TTM, as of June 30, 2025): 8.18; 5-year revenue CAGR: 4.22% (for the 5-year period ending 2025)

UPS is 39.7% below its 52-week high as of August 12, 2025

Company Overview

Company Snapshot

Provides letter and package delivery, transportation, logistics, and related supply chain services across domestic and international markets.

Generates revenue primarily through shipping fees, logistics contracts, and value-added services such as freight forwarding, customs brokerage, and supply chain solutions.

Operates in approximately 200 countries and territories.

United Parcel Service, Inc. is a global leader in integrated freight and logistics, operating a vast network for time-definite package and freight delivery. It operates a large fleet of transportation assets. UPS's diversified service offerings and global reach position it as a critical partner for businesses navigating complex supply chains and international commerce.

Foolish take

Centric Wealth Management lightened its position in UPS in the second quarter, but the package delivery company remains its top holding. Therefore, it represents a conviction holding for the financial company.

Unfortunately, that conviction was likely to have been tested by the company's second-quarter earnings report, which saw management decline to update on its full-year guidance, amid outlining the pressure on some of its key customers. UPS is actively pursuing the small and medium-sized business (SMB) market because it presents a margin expansion opportunity, notably when compared to the low-margin residential deliveries for Amazon.com that UPS is reducing.

It's a plan in accordance with management's determination to improve margins and optimize its network towards selected end markets like SMBs and healthcare. However, the uncertainty around the tariff landscape from month to month is causing SMBs to hold back on orders and deliveries, as they simply can't manage risk over tariff changes in the way that large enterprises can.

It makes for an uncertain trading environment for UPS, and its capital allocation policy is also subject to question. The company certainly has excellent long-term growth prospects, and it can muddle through a difficult period, but in the near term, UPS has significant headwinds to overcome.

Glossary

Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a financial institution.
13F Reportable Assets: Securities that institutional investment managers must disclose quarterly to the SEC if managing over $100 million.
Dividend Yield: Annual dividends paid by a company divided by its current share price, shown as a percentage.
Forward P/E (Price-to-Earnings): A valuation ratio comparing a company's current share price to its projected earnings per share for the next year.
EV/EBITDA: Enterprise Value divided by Earnings Before Interest, Taxes, Depreciation, and Amortization; used to assess company valuation.
CAGR (Compound Annual Growth Rate): The annualized rate of return for an investment over a specified period, assuming profits are reinvested.
Quarterly Average Price: The average closing price of a security over a given fiscal quarter.
Stake: The ownership interest or number of shares held in a company by an investor or fund.
Lagging the S&P 500:Underperforming the S&P 500 index in terms of price return over a specified period.
52-week High: The highest price at which a security has traded during the past year.
Value-Added Services: Additional offerings beyond basic delivery, such as customs brokerage or supply chain solutions, that enhance customer value.
TTM:The 12-month period ending with the most recent quarterly report.

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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, United Parcel Service, and Vanguard S&P 500 ETF. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.