UPS(US:UPS) The Motley Foolยท2025-08-18 16:59Core Viewpoint - Drexel Morgan & Co. has significantly increased its investment in United Parcel Service (UPS) by purchasing 100,000 shares, reflecting a bullish outlook on the company's future performance and dividend sustainability [2][3][8]. Investment Activity - The investment firm acquired 100,000 shares of UPS, with an estimated transaction value of approximately $9.86 million based on the average share price in Q2 2025 [2][3]. - Following this transaction, Drexel Morgan's total stake in UPS increased to 309,765 shares, valued at $27.08 million as of August 12, 2025 [2][3]. - UPS now constitutes 4.8% of Drexel Morgan's 13F reportable assets, which total $563.16 million as of the same date [3][4]. Company Performance - As of August 12, 2025, UPS shares were priced at $87.43, reflecting a decline of 29.4% over the past year, underperforming the S&P 500 by 47.2 percentage points [4]. - UPS has a market capitalization of $73.94 billion and reported revenue of $90.17 billion with a net income of $5.73 billion for the trailing twelve months (TTM) [5]. - The company offers a dividend yield of 7.48% as of August 12, 2025, with a forward P/E ratio of 11.91 [4][5]. Business Overview - UPS operates as a global leader in integrated freight and logistics, providing package delivery, transportation, logistics, and supply chain solutions across approximately 200 countries and territories [5][7]. - The company serves a diverse customer base, including individuals, small businesses, and large enterprises, with a focus on time-definite package delivery services and value-added logistics solutions [6][7]. Strategic Insights - Drexel Morgan's acquisition of UPS shares indicates a preference for large-capitalization, dividend-paying stocks, which aligns with its investment strategy [8]. - UPS's management has committed to significant capital allocation, including $1 billion for stock buybacks and $5.5 billion for dividends in 2025, amidst a challenging trading environment [9][10].