Drexel Morgan Takes a Bullish Position on UPS

Drexel Morgan & Co. disclosed a purchase of 100,000 United Parcel Service shares, with an estimated transaction value of $9.86 million in Q2 2025, in its latest SEC filing dated Aug. 12, 2025.

Key points

The investment firm bought 100,000 UPS shares estimated trade size of $9.86 million, based on the average price in Q2 2025.

The transaction size represented 1.7502% of 13F reportable assets under management as of Q2 2025

Post-trade, the UPS stake stands at 309,765 shares, valued at $27.08 million as of August 12, 2025.

UPS now represents 4.8% of Drexel Morgan's 13F assets as of August 12, 2025, across 56 positions.

What happened

Drexel Morgan & Co. increased its position in United Parcel Service(NYSE:UPS) by 100,000 shares during Q2 2025, according to a U.S. Securities and Exchange Commission (SEC) filing (link) published Aug. 12, 2025. The estimated transaction value, based on the average UPS share price in Q2 2025, was approximately $9.86 million. UPS accounted for 4.8% of the fund's $563.16 million reportable equity assets as of August 12, 2025.

What else to know

This was a buy; UPS comprised 4.8% of Drexel Morgan's 13F assets as of August 12, 2025

Top holdings after the filing as of June 30.

T: $117,432,154 (20.9% of AUM)

CLF: $54,495,833 (9.68% of AUM)

JPM: $47.91 million (8.5% of AUM)

JNJ: $37.36 million (6.6% of AUM)

IBM: $32.81 million (5.8% of AUM)

UPS shares were priced at $87.43 as of Aug. 12, down 29.4% over the one-year period and trailing the S&P 500 by 47.2 percentage points over the past year

Dividend yield: 7.48% as of August 12; Forward P/E (FY2026): 11.91; EV/EBITDA, TTM as of June 30.

Company Overview

Company Snapshot

Offers package delivery, transportation, logistics, international air and ocean freight forwarding, and supply chain solutions across approximately 200 countries and territories.

Generates revenue primarily through time-definite package delivery services and value-added logistics solutions for businesses and consumers worldwide.

Serves a diverse customer base, including individuals, small businesses, large enterprises, and specialized industries such as healthcare and life sciences.

United Parcel Service, Inc. (UPS) is a global leader in integrated freight and logistics, operating one of the world's largest delivery networks. The company leverages a vast fleet and advanced logistics infrastructure to provide reliable, time-sensitive shipping and supply chain services. UPS's scale, broad geographic reach, and diversified service offerings underpin its competitive position in the transportation and logistics sector.

Foolish take

Drexel Morgan's acquisition of 100,000 shares of UPS in the second quarter is a significant move. Its total position in UPS now constitutes about 4.8% of its assets. You could argue that this is a very bullish call given that the stock's weighting in the S&P 500 is just 0.23% at present. Part of the explanation for it comes from its favoring of "large-capitalization, dividend-paying, primarily A+ rated stocks" in its core portfolio product.

As such, Drexel Morgan would have been delighted to hear UPS CEO Carol Tome's affirmation that the company's "UPS is rock solid strong and so is our dividend" during a recent earnings call.

That's fair enough, and the stock remains an attractive stock for passive income-seeking investors. On the other hand, the stock likely trades on such a high yield (currently 7.4%) because investors have doubts over its sustainability or management's capital allocation policy and its execution.

With UPS having spent $1 billion buying back stock in 2025 and committing to spending $5.5 billion in cash on dividends, at a time when the trading environment is so uncertain that management can't give guidance, investors have a right to question whether management is following the right policy.

Glossary

13F reportable assets: Equity securities that institutional investment managers must disclose quarterly to the SEC on Form 13F.
Assets under management (AUM):The total market value of investments managed on behalf of clients by a fund or firm.
Position: The amount of a particular security or asset held by an investor or fund.
Stake: The ownership interest or number of shares a fund or investor holds in a company.
Dividend yield: Annual dividends per share divided by the current share price, shown as a percentage.
Forward P/E : Price-to-earnings ratio using forecasted earnings for the next fiscal year.
EV/EBITDA: Enterprise value divided by earnings before interest, taxes, depreciation, and amortization; measures company valuation.
TTM:The 12-month period ending with the most recent quarterly report.
Market value: The current total value of a security or portfolio, based on prevailing market prices.
Transaction value : The total dollar amount involved in a purchase or sale of securities.
Trailing: Refers to past performance or data, typically over a specified period, such as the last year.
Buy (in fund context): An increase in the number of shares or securities held by a fund or investor.

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JPMorgan Chase is an advertising partner of Motley Fool Money. Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends International Business Machines, JPMorgan Chase, and United Parcel Service. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.