UPS Shares Slide to 97th in Trading Volume Amid Institutional Divergence and Insider Buys Amid Dividend Doubts

On August 18, 2025, United’s shares fell 2.23% with a trading volume of $0.81 billion, ranking 97th in market activity. Institutional activity highlighted mixed signals: Drexel Morgan & Co. increased its stake in United Parcel Service (UPS) by 100,000 shares in Q2, valued at $9.86 million, elevating the position to 309,765 shares (4.8% of its 13F assets). Conversely, Tocqueville Asset Management reduced its UPS holdings by 48.7% in Q1, retaining 27,630 shares valued at $3.04 million. UPS insiders, including CEO Carol Tome and Director William R. Johnson, also bolstered their stakes in July, with Tome purchasing 11,682 shares ($1 million) and Johnson acquiring 5,000 shares ($432,500), signaling confidence in the logistics giant’s long-term stability.

Despite these developments, UPS faces broader challenges. The stock’s 7.48% dividend yield, while attractive, reflects skepticism about its sustainability amid a high-yield environment. Management’s $1 billion share buyback and $5.5 billion dividend commitments in 2025 contrast with uncertain market conditions, where UPS’s lack of near-term guidance has raised investor concerns. Meanwhile, labor dynamics saw UPS avert strikes by resolving Teamster grievances and announced facility closures in Texas and North Carolina as part of network optimization efforts. These operational adjustments, coupled with a $6.56 annualized dividend, underscore the company’s focus on cost discipline and shareholder returns.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 yielded a 1-day return of 0.98% and a total return of 31.52% over 365 days. This indicates the approach captured short-term momentum but also exposed investors to market volatility and timing risks.