5 Stocks to Sell According to Billionaire Richard Chilton

2. United Parcel Service, Inc. (NYSE:UPS)

Number of Hedge Fund Holders: 42

United Parcel Service, Inc. (NYSE:UPS) provides letter and package delivery, transportation, logistics, and financial services. The company is among the stocks to sell according to billionaire Richard Chilton, whose hedge fund sold its 14,626 shares in the company in the third quarter.

Exane BNP Paribas analyst Robert Joynson holds a Neutral rating on United Parcel Service, Inc. (NYSE:UPS) shares as of this January.

The company’s EPS in the fiscal third quarter of 2021 was $2.71 and its revenue was $23.18 billion. Both beat estimates by $0.16 and $613.3 million respectively.

Our hedge fund data shows 42 hedge funds long United Parcel Service, Inc. (NYSE:UPS) in the third quarter, and 52 hedge funds long the stock in the previous quarter. The total stake values were $1.3 billion and $2.2 billion respectively.

ClearBridge Investments, an investment management firm, mentioned United Parcel Service, Inc. (NYSE:UPS) in its third-quarter 2021 investor letter. Here’s what they said:

“United Parcel Service (UPS), coming off extraordinary performance in the second quarter, saw some weakness after its margin guidance disappointed, partly due to remaining contract renegotiations skewing to large enterprises where price increases will be tougher to implement, while labor availability and costs are also expected to pressure margins. It also traded down in sympathy with Federal Express, which cited constrained labor supply affecting network efficiency and exacerbating margin pressure from higher wages. In UPS’s case, concerns around wage inflation could be overstated as UPS has baked in wage hikes in long-term contracts and has somewhat less exposure to shortterm market wage rates. We remain confident in UPS’s strategy of profitable growth and disciplined pricing as it focuses on its high level of on-time delivery and customer satisfaction, a formula that should hold the company in good stead for the long term.”