United Parcel Service, Inc. (NYSE:UPS) investors should pay attention to a decrease in support from the world’s most elite money managers of late.UPS was in 44 hedge funds’ portfolio at the end of September. There were 44 hedge funds in our database with UPS positions at the end of the previous quarter.
As a report from The Street indicates: “Trade-Ideas LLC identified United Parcel Service Inc (UPS) Class B (UPS) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified United Parcel Service Inc (UPS) Class B.”
With these “truths” under our belt, it’s important to take a peek at the key action surrounding United Parcel Service, Inc. (NYSE:UPS).
What have hedge funds been doing with United Parcel Service, Inc. (NYSE:UPS)?
At the end of the third quarter, a total of 44 of the hedge funds we track were long in this stock, a change of 0% from the previous quarter. With hedgies’ capital changing hands, there exists a few noteworthy hedge fund managers who were upping their stakes significantly.
Of the funds tracked by Insider Monkey, Eric W. Mandelblatt’s Soroban Capital Partners had the largest call position in United Parcel Service, Inc. (NYSE:UPS), worth close to $699 million, amounting to 7.9 percent of its total 13F portfolio. The second largest stake is held by Greenhaven Associates, led by Edgar Wachenheim, holding a $363.6 million position; the fund has 8.5 percent of its 13F portfolio invested in the stock. Remaining peers with similar optimism comprise Jonathon Jacobson’s Highfields Capital Management, Lee Ainslie’s Maverick Capital and Lou Simpson’s SQ Advisors.
Because United Parcel Service, Inc. (NYSE:UPS) has faced declining sentiment from the aggregate hedge fund industry, it’s safe to say that there lies a certain “tier” of hedge funds that elected to cut their entire stakes last quarter. It’s worth mentioning that James Crichton and Adam Weiss’s Scout Capital Management sold off the largest investment of all the hedgies tracked by Insider Monkey, valued at close to $259.4 million in call options.. Jonathon Jacobson’s fund, Highfields Capital Management, also dropped its call options., about $129.7 million worth. These moves are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
How have insiders been trading United Parcel Service, Inc. (NYSE:UPS)?
Insider purchases made by high-level executives is best served when the company we’re looking at has seen transactions within the past half-year. Over the last 180-day time period, United Parcel Service, Inc. (NYSE:UPS) has experienced zero unique insiders purchasing, and eight insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to United Parcel Service, Inc. (NYSE:UPS). These stocks are Hub Group Inc (NASDAQ:HUBG), UTi Worldwide Inc. (NASDAQ:UTIW), Expeditors International of Washington (NASDAQ:EXPD), C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW), and FedEx Corporation (NYSE:FDX). All of these stocks are in the air delivery & freight services industry and their market caps are closest to UPS’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Hub Group Inc (NASDAQ:HUBG)||10||0||3|
|UTi Worldwide Inc. (NASDAQ:UTIW)||12||0||4|
|Expeditors International of Washington (NASDAQ:EXPD)||33||0||2|
|C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW)||21||0||2|
|FedEx Corporation (NYSE:FDX)||48||0||9|
Insiders are selling both United Parcel Service, Inc. and FedEx corporation, the two most widely held delivery & freight services industry stocks among the hedge funds Insider Monkey tracks.