Founded by two teenagers with a $100 loan, the United Parcel Service, Inc. (UPS) has come a long way from its humble beginnings in 1907. Jim Casey and Claude Ryan founded the American Messenger Company in a basem*nt in Seattle at a time in history when automobiles and phones were not widely accessible.
Instead, the two teenagers carried out a variety of errands on foot, such as prescriptions,letters, and other everyday items. Today, UPS is one of the largest global shipping and logistics companies in the world. As of July 2023, the company's market capitalization is$153.96 billion. The companyreported Q1 2023 revenues of $22.9 billion.
Key Takeaways
- UPS is one of the largest global shipping and logistics companies in the world; as of July 2023, the company's market capitalization is$153.96 billion.
- Institutional investors make up over 72% of UPS stock ownership.
- The Vanguard Group Inc. owns over 67 million shares of UPS and has an 9.3% stake in the company.
- BlackRock is the second-largest institutional holder, with 7.7% of the company.
- Retired CEO David Abney holds the largest insider stake at UPS, with over 3 million shares.
Top 3 Institutional Shareholders of UPS
The largest shareholders in UPS are institutions, like asset managers and mutual funds. They purchase shares of UPS stock to include in the portfolios of their many clients. Institutional investors make up over 72% of UPS stock ownership.
The Vanguard Group Inc.
The Vanguard Group Inc. is a major playerinpassively-managed stock mutual funds. The asset management company recorded assets under management of $7.7 trillion as of July 2023. It owns over 67 million shares of UPS and has a 9.3% stake in the company. Five of the top ten mutual fund holders of UPS are Vanguard Funds, includingVanguard Total Stock Market Index Fund,Vanguard 500 Index Fund, Vanguard Specialized-Dividend Growth Fund, Vanguard Institutional Index Fund, and Vanguard Specialized-Dividend Appreciation Index Fund.
BlackRock Fund Advisors
With $9.09trillion inassets under managementin July 2023, BlackRock, Inc. (BLK) isthe largest investment management company in the world, publicly-traded or otherwise. Boasting a market capitalization of $103.5billion as of July 2023, the firm sells mutual funds, exchange-traded funds, and closed-end funds.BlackRockowns over 53million shares of UPS, which amounts to 7.34% of the company.
State Street Global Advisors
State Street Global Advisorsis a large asset manager and is one of the major sponsors of exchange-traded funds (ETFs). State Street has $3.5 trillion of assets under management as of July 2023. The company controls nearly 28 million shares (3.9%) of UPS, as of July 2023.
Top 3 Individual Holders of UPS Shares
Company insiders and high-ranking executives tend to be among the largest shareholders of a company. The following figures reflect the individuals with the largest holdings in UPS. These figures only reflect shares that they directly own, and do not include indirect ownership. Insiders hold less than 0.1% of all shares.
Carol B. Tomé
Carol B. Tomé has been the CEO of UPS since June of 2020, replacing retiring CEO David P. Abney. She had been part of the company's board since 2003 and had previously served as chair of the Audit Committee. In addition to her roles at UPS, she has also served as Chief Financial Officer at the Home Depot, a position she held for 18 years.
According to a proxy statement filed in 2023, Carol Tomé holds 324,023 shares of UPS stock, making her the largest individual owner.
Kate Gutmann
The second-largest insider stake at UPS is held by Kate Gutmann, the company's Executive Vice President (EVP) and President International, Healthcare and Supply Chain Solutions. Gutmann is a member of the company’s Executive Leadership Team, and is responsible for all of the company's business operations outside of U.S. small package. She was previously the EVP and Global Healthcare and Chief Sales and Solutions Officer, in which she worked to expand the company's global healthcare business.
According to the 2023 filings, Gutmann is the owner of 108,085 shares of UPS stock.
Brian Newman
The third-largest insider stake in UPS is held by Brian Newman, who is the company's Executive Vice President (EVP) and Chief Financial Officer. Newman is part of the Executive Leadership team and is responsible for communicating the firm's strategy and performance to investors as well as managing the company's capital market activity. Before joining UPS, Newman spent 26 years with PepsiCo in a variety of financial leadership roles.
According to the 2023 filing, Newman is the owner of 83,994 shares of UPS stock.
How Many UPS Stores Are There In the United States?
There are 5,163 UPS locations in the United States, as of March 31, 2023. There are also 372 locations in Canada.
What Percent of Market Share Does UPS Have?
UPS is the largest private parcel delivery firm in the United States and makes about 37% of all local deliveries as of 2021, the most recently available data. FedEx was the next largest player in the market, with 33%, while the United States Postal Service accounted for only 17%.
How Many Shareholders Does UPS have?
The vast majority of UPS shares are held by institutions, such as hedge funds, mutual funds, and asset managers. There are 2,815 such institutions, collectively holding more than 72% of all UPS shares. The rest are held by individual owners, including company executives and other insiders.
The Bottom Line
UPS is one of the largest shipping and logistics companies in the world, having grown exponentially since its humble beginnings in a Seattle basem*nt in 1907. Today, the company delivers packages daily for 1.6 million shipping customers to 11.1 million delivery customers in more than 220 countries and territories. In 2022, UPS delivered an average of 24.3 million packages per day for a total of 6.2 billion packages during the year.
