Citigroup Forecasts Strong Price Appreciation for Union Pacific (NYSE:UNP) Stock

Key Points

• Citigroup raised its price target on Union Pacific to $285 and maintained a "buy" rating, implying roughly a 15.9% upside from the current price.
• Analysts' consensus is a "Moderate Buy" with an average price target of $265.86; UNP trades around $245.90 with a market cap of $145.91 billion and a P/E of 20.54.
• Union Pacific slightly missed the quarter (EPS $2.86 vs. $2.92; revenue $6.09B vs. $6.15B) but showed strong profitability with a net margin of 29.12% and ROE of 40.89%.

Union Pacific (NYSE:UNP - Get Free Report) had its price objective hoisted by research analysts at Citigroup from $270.00 to $285.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The brokerage currently has a "buy" rating on the railroad operator's stock. Citigroup's target price indicates a potential upside of 15.90% from the stock's current price.

A number of other research analysts also recently commented on UNP. Deutsche Bank Aktiengesellschaft set a $245.00 price target on shares of Union Pacific in a research note on Thursday, December 11th. Royal Bank Of Canada set a $280.00 price target on Union Pacific in a research report on Thursday, December 18th. JPMorgan Chase & Co. dropped their price target on Union Pacific from $270.00 to $265.00 and set a "neutral" rating on the stock in a research report on Wednesday, January 28th. BMO Capital Markets restated a "market perform" rating and issued a $295.00 price target on shares of Union Pacific in a research report on Thursday, February 19th. Finally, The Goldman Sachs Group restated a "neutral" rating and issued a $267.00 price target on shares of Union Pacific in a research report on Tuesday, January 27th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $265.86.

Union Pacific Stock Up 0.1%

Shares of Union Pacific stock traded up $0.36 during trading hours on Tuesday, hitting $245.90. The company had a trading volume of 2,862,914 shares, compared to its average volume of 3,370,488. The company has a debt-to-equity ratio of 1.64, a current ratio of 0.91 and a quick ratio of 0.75. The company's 50-day moving average is $250.08 and its two-hundred day moving average is $236.31. The company has a market cap of $145.91 billion, a P/E ratio of 20.54, a price-to-earnings-growth ratio of 2.70 and a beta of 0.96. Union Pacific has a twelve month low of $204.66 and a twelve month high of $268.14.

Union Pacific (NYSE:UNP - Get Free Report) last posted its earnings results on Tuesday, January 27th. The railroad operator reported $2.86 EPS for the quarter, missing analysts' consensus estimates of $2.92 by ($0.06). The company had revenue of $6.09 billion during the quarter, compared to analysts' expectations of $6.15 billion. Union Pacific had a net margin of 29.12% and a return on equity of 40.89%. The company's quarterly revenue was down .6% on a year-over-year basis. During the same period last year, the business earned $2.91 earnings per share. Analysts anticipate that Union Pacific will post 11.99 earnings per share for the current fiscal year.

Insider Activity at Union Pacific

In related news, EVP Eric J. Gehringer sold 1,999 shares of the firm's stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $234.93, for a total value of $469,625.07. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.28% of the stock is owned by company insiders.

Hedge Funds Weigh In On Union Pacific

Several hedge funds have recently added to or reduced their stakes in UNP. Rachor Investment Advisory Services LLC purchased a new position in Union Pacific during the 4th quarter valued at about $25,000. Tucker Asset Management LLC purchased a new position in Union Pacific during the 4th quarter valued at about $25,000. SWAN Capital LLC increased its holdings in Union Pacific by 2,575.0% during the 4th quarter. SWAN Capital LLC now owns 107 shares of the railroad operator's stock valued at $25,000 after acquiring an additional 103 shares in the last quarter. High Point Wealth Management LLC purchased a new position in Union Pacific during the 4th quarter valued at about $26,000. Finally, Caitlin John LLC purchased a new stake in shares of Union Pacific during the third quarter worth about $27,000. 80.38% of the stock is currently owned by hedge funds and other institutional investors.

About Union Pacific

Union Pacific Corporation NYSE: UNP is one of the largest freight railroad companies in the United States. Its principal operating subsidiary, Union Pacific Railroad, has roots that trace back to the Pacific Railway Act of 1862 and the construction of the first transcontinental rail link completed in 1869. The company is headquartered in Omaha, Nebraska, and operates as a holding company for rail transportation and related services.

Union Pacific's core business is the movement of freight by rail across an extensive rail network serving the western two‑thirds of the United States.

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