Deep-Pocketed Investment Advisor Takes a $351 Million Step Back From This Shipping Giant, According to Wall Street Filing
Key Points
Sold 3,884,101 shares of United Parcel Service; estimated trade value of ~$351.8 million based on the average price for the quarter
Post-trade stake: 533,764 shares, valued at $44.59 million as of September 30, 2025
The position is now 0.11% of fund AUM, placing it outside the fund’s top five holdings
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Pacer Advisors, Inc. disclosed a significant reduction in its United Parcel Service (NYSE:UPS) holdings, selling 3,884,101 shares for an estimated $351.8 million, according to an SEC filing dated October 15, 2025.
What Happened
According to a filing with the Securities and Exchange Commission dated October 15, 2025, Pacer Advisors, Inc. sold 3,884,101 shares of United Parcel Service during the quarter. The estimated transaction value, based on the average share price for the quarter, was ~$351.8 million. Following the sale, the fund held 533,764 shares, worth $44.59 million.
What Else to Know
This sale reduced the United Parcel Service stake to 0.11% of Pacer Advisors’ total reportable U.S. equity assets under management as of September 30, 2025.
Top holdings after the filing:
- NASDAQ:NVDA: $569.61 million (1.65% of AUM as of September 30, 2025)
- NASDAQ:AMAT: $499.48 million (1.44% of AUM as of September 30, 2025)
- NYSE:XOM: $489.87 million (1.42% of AUM as of September 30, 2025)
- NYSE:NEM: $483.92 million (1.40% of AUM as of September 30, 2025)
- NYSE:MO: $467.63 million (1.35% of AUM as of September 30, 2025)
As of October 14, 2025, United Parcel Service shares were priced at $84.05, down 37.5% over the past year; shares have underperformed the S&P 500 by 47.9 percentage points on a price-change basis (ex-dividends) over the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $90.17 billion |
| Net Income (TTM) | $5.73 billion |
| Dividend Yield | 7.79% |
| Price (as of market close 10/14/25) | $84.05 |
Company Snapshot
United Parcel Service, Inc. is a global leader in integrated freight and logistics, operating in over 200 countries and territories. The company leverages a vast transportation network and advanced technology to provide reliable, time-definite delivery services. UPS's scale, diversified service offering, and operational efficiency underpin its competitive position in the logistics sector.
The company offers letter and package delivery, transportation, logistics, and supply chain solutions across U.S. domestic and international markets. It generates revenue through time-definite air and ground shipping, freight forwarding, customs brokerage, and ancillary logistics services.
United Parcel Service serves a diverse client base including businesses of all sizes, healthcare and life sciences organizations, and individual consumers globally.
Foolish Take
Pacer advisors, a private investment manager based out of Pennsylvania, recently disclosed the sale of nearly 3.9 million shares of United Parcel Service (UPS), worth more than $351 million. It's another blow for a company whose stock has chronically underperformed key benchmarks recently.
For example, UPS shares have slipped nearly 48% over the last three years, while the S&P 500 has gained about 86% over the same period. That means UPS shares have underperformed the benchmark index by 134% dating back to late 2022.
Therefore, it's no wonder that institutional support is drying up. Fund managers like Pacer are clearly retreating from the logistics giant. But why?
As is often the case, it comes down to fundamentals. Key metrics for UPS, like revenue, net income, and free cash flow have fallen steadily in recent years. Dating back to 2022, UPS' revenue has fallen 10%; net income has dropped 50%; and free cash flow has slumped by an eye-popping 62%.
Clearly, a turnaround is needed for this iconic company. However, until the company can improve its overall fundamentals, retail investors may want to exercise caution with UPS stock.
Glossary
Assets Under Management (AUM): The total market value of all investments managed by a fund or investment firm.
Reportable U.S. Equity Assets: U.S. stock holdings that an investment manager must disclose in regulatory filings.
Stake: The ownership interest or position held in a company by an investor or fund.
Top Holdings: The largest investments in a fund's portfolio, usually ranked by market value.
Dividend Yield: Annual dividends per share divided by the share price, expressed as a percentage.
Time-Definite Delivery: Shipping services that guarantee delivery by a specific date or time.
Freight Forwarding: The coordination and shipment of goods on behalf of shippers, often internationally.
Customs Brokerage: Service that helps importers and exporters comply with customs regulations and clear goods through customs.
Ancillary Logistics Services: Additional support services in logistics, such as warehousing, packaging, or inventory management.
TTM: The 12-month period ending with the most recent quarterly report.
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Jake Lerch has positions in Altria Group, ExxonMobil, Nvidia, and United Parcel Service. The Motley Fool has positions in and recommends Applied Materials, Nvidia, and United Parcel Service. The Motley Fool has a disclosure policy.
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