Deep-Pocketed Investment Advisor Takes a $351 Million Step Back From This Shipping Giant, According to Wall Street Filing

Pacer Advisors, Inc. significantly reduced its United Parcel Service (UPS) holdings, divesting 3,884,101 shares valued at approximately $351.8 million, according to an October 15, 2025 SEC filing. This substantial sale, which lowered UPS to 0.11% of Pacer's assets under management, reflects an institutional retreat from the logistics giant, whose stock has underperformed the S&P 500 by nearly 48 percentage points over the past year amid significant declines in key financial metrics like revenue and net income since 2022.

Analysis

Pacer Advisors, Inc. executed a significant reduction in its United Parcel Service (UPS) holdings, divesting 3,884,101 shares for an estimated $351.8 million, as disclosed in an October 15, 2025 SEC filing. This substantial sale lowered UPS's weighting to just 0.11% of Pacer's total reportable U.S. equity assets under management as of September 30, 2025, effectively removing it from the fund's top five holdings.

The divestment follows a period of severe underperformance for UPS, with shares down 37.5% over the past year and underperforming the S&P 500 by 47.9 percentage points. Over the last three years, UPS shares have declined nearly 48% while the S&P 500 gained 86%, indicating a 134% underperformance against the benchmark.

This poor stock performance is directly attributed to deteriorating fundamentals, including a 10% decline in revenue, a 50% drop in net income, and a 62% slump in free cash flow since 2022. The strongly negative sentiment surrounding UPS, with a score of -0.8, reflects institutional retreat and a lack of confidence in a near-term turnaround, despite the company's TTM revenue of $90.17 billion and a 7.79% dividend yield.

Key Decisions for Investors

• Investors should critically re-evaluate their United Parcel Service (UPS) holdings given the significant institutional divestment and persistent underperformance against broader market benchmarks.
• Pay close attention to future earnings reports for signs of improvement in key financial metrics such as revenue, net income, and free cash flow, as these have been primary drivers of recent stock weakness.
• Consider exploring alternative investments within the transportation and logistics sector or other industries exhibiting stronger fundamental growth and positive investor sentiment.