BMO Capital Markets Forecasts Strong Price Appreciation for Union Pacific (NYSE:UNP) Stock

Key Points

• BMO Capital Markets has raised its price target for Union Pacific (NYSE:UNP) from $270.00 to $277.00, indicating a potential upside of 23.84% from the current price.
• Other analysts like Citigroup and Jefferies Financial Group have also increased their price targets, highlighting a general positive outlook for the stock.
• Union Pacific recently reported quarterly earnings of $3.03 EPS, exceeding expectations, and revenue of $6.15 billion, which marks a 2.4% increase from the previous year.
• Institutional investors own 80.38% of Union Pacific's stock, with significant recent investments indicating strong confidence in the company's performance.

Union Pacific (NYSE:UNP - Free Report) had its price objective raised by BMO Capital Markets from $270.00 to $277.00 in a research note issued to investors on Friday morning,Benzinga reports. They currently have an outperform rating on the railroad operator's stock.

A number of other equities research analysts also recently commented on UNP. Robert W. Baird started coverage on Union Pacific in a research report on Tuesday, July 1st. They issued a "neutral" rating and a $231.00 target price on the stock. Bank of America upped their price objective on shares of Union Pacific from $256.00 to $262.00 and gave the stock a "buy" rating in a report on Friday, May 16th. Wells Fargo & Company upped their price objective on shares of Union Pacific from $250.00 to $260.00 and gave the stock an "overweight" rating in a report on Friday. Raymond James Financial restated a "strong-buy" rating on shares of Union Pacific in a report on Tuesday, July 15th. Finally, UBS Group upped their price objective on shares of Union Pacific from $238.00 to $240.00 and gave the stock a "neutral" rating in a report on Friday. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating, sixteen have issued a buy rating and two have given a strong buy rating to the stock. According to data from MarketBeat, Union Pacific has a consensus rating of "Moderate Buy" and an average target price of $259.46.

Union Pacific Price Performance

Shares of Union Pacific stock traded up $4.19 on Friday, hitting $224.71. 8,254,381 shares of the company were exchanged, compared to its average volume of 3,405,370. The stock has a market capitalization of $134.26 billion, a price-to-earnings ratio of 19.52, a price-to-earnings-growth ratio of 2.25 and a beta of 1.05. The company has a 50-day moving average price of $227.17 and a 200 day moving average price of $231.03. Union Pacific has a 1-year low of $204.66 and a 1-year high of $258.07. The company has a quick ratio of 0.61, a current ratio of 0.65 and a debt-to-equity ratio of 1.86.

Union Pacific (NYSE:UNP - Get Free Report) last released its quarterly earnings results on Thursday, July 24th. The railroad operator reported $3.03 EPS for the quarter, beating the consensus estimate of $2.84 by $0.19. Union Pacific had a net margin of 28.43% and a return on equity of 41.73%. The firm had revenue of $6.15 billion for the quarter, compared to analyst estimates of $6.09 billion. During the same quarter in the previous year, the company earned $2.74 EPS. The business's revenue for the quarter was up 2.4% compared to the same quarter last year. As a group, sell-side analysts predict that Union Pacific will post 11.99 earnings per share for the current fiscal year.

Union Pacific Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Friday, August 29th will be issued a $1.38 dividend. This is a boost from Union Pacific's previous quarterly dividend of $1.34. The ex-dividend date is Friday, August 29th. This represents a $5.52 annualized dividend and a yield of 2.46%. Union Pacific's dividend payout ratio (DPR) is 47.96%.

Institutional Trading of Union Pacific

Several hedge funds have recently added to or reduced their stakes in UNP. Highline Wealth Partners LLC boosted its holdings in Union Pacific by 103.5% in the first quarter. Highline Wealth Partners LLC now owns 116 shares of the railroad operator's stock valued at $27,000 after purchasing an additional 59 shares in the last quarter. CBIZ Investment Advisory Services LLC increased its position in Union Pacific by 1,400.0% during the first quarter. CBIZ Investment Advisory Services LLC now owns 120 shares of the railroad operator's stock worth $28,000 after buying an additional 112 shares during the period. Financial Gravity Asset Management Inc. acquired a new position in Union Pacific during the first quarter worth approximately $32,000. EnRich Financial Partners LLC acquired a new position in Union Pacific during the fourth quarter worth approximately $31,000. Finally, WPG Advisers LLC acquired a new position in shares of Union Pacific in the first quarter valued at approximately $33,000. Institutional investors and hedge funds own 80.38% of the company's stock.

Union Pacific Company Profile

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. The company offers transportation services for grain and grain products, fertilizers, food and refrigerated products, and coal and renewables to grain processors, animal feeders, ethanol producers, renewable biofuel producers, and other agricultural users; and construction products, industrial chemicals, plastics, forest products, specialized products, metals and ores, petroleum, liquid petroleum gases, soda ash, and sand, as well as finished automobiles, automotive parts, and merchandise in intermodal containers.