Union Pacific Corporation (NYSE:UNP) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a positive outlook: Union Pacific has a consensus “Moderate Buy” rating, with 14 buy, two strong-buy and six hold recommendations. The average 12-month price target is approximately $320.89, with recent targets reaching as high as $350.
• Strong quarterly performance: Union Pacific reported quarterly earnings of $3.41 per share, exceeding estimates of $3.26, while revenue rose 11.5% year over year to $6.86 billion.
• Dividend increased: The company raised its quarterly dividend from $1.38 to $1.42 per share, equivalent to an annualized $5.68 payout and a 2.0% yield. Institutional investors own approximately 80.38% of the stock.

Shares of Union Pacific Corporation (NYSE:UNP - Get Free Report) have been given a consensus rating of "Moderate Buy" by the twenty-two research firms that are covering the firm, MarketBeat Ratings reports. Six analysts have rated the stock with a hold rating, fourteen have issued a buy rating and two have issued a strong buy rating on the company. The average 1 year target price among analysts that have updated their coverage on the stock in the last year is $320.8947.

UNP has been the topic of several recent research reports. Stephens raised shares of Union Pacific to a "strong-buy" rating in a research note on Wednesday, July 8th. Benchmark increased their target price on shares of Union Pacific from $325.00 to $335.00 and gave the company a "buy" rating in a research note on Friday, July 24th. Robert W. Baird raised their target price on shares of Union Pacific from $311.00 to $344.00 and gave the stock an "outperform" rating in a report on Monday, July 27th. TD Cowen restated a "buy" rating and issued a $325.00 price target (up from $282.00) on shares of Union Pacific in a research report on Friday, July 24th. Finally, Citizens Jmp initiated coverage on Union Pacific in a report on Wednesday, July 15th. They issued an "outperform" rating and a $350.00 price target on the stock.

Institutional Investors Weigh In On Union Pacific

Hedge funds have recently modified their holdings of the stock. Cambient Family Office LLC acquired a new position in shares of Union Pacific in the 4th quarter valued at about $1,319,000. First National Bank of Omaha grew its stake in Union Pacific by 35.8% during the fourth quarter. First National Bank of Omaha now owns 54,635 shares of the railroad operator's stock worth $12,665,000 after purchasing an additional 14,399 shares during the period. North Dakota State Investment Board acquired a new stake in Union Pacific during the fourth quarter worth approximately $4,746,000. Sage Investment Advisers LLC bought a new stake in Union Pacific in the fourth quarter worth approximately $997,000. Finally, National Pension Service increased its holdings in Union Pacific by 1.2% in the fourth quarter. National Pension Service now owns 1,316,496 shares of the railroad operator's stock worth $304,532,000 after purchasing an additional 15,785 shares in the last quarter. 80.38% of the stock is owned by hedge funds and other institutional investors.

Union Pacific Price Performance

Shares of NYSE:UNP opened at $285.01 on Tuesday. The company has a quick ratio of 0.82, a current ratio of 0.99 and a debt-to-equity ratio of 1.40. Union Pacific has a fifty-two week low of $214.32 and a fifty-two week high of $315.99. The firm has a 50-day simple moving average of $294.92 and a 200 day simple moving average of $271.92. The company has a market cap of $169.32 billion, a PE ratio of 23.08, a P/E/G ratio of 2.83 and a beta of 0.96.

Union Pacific (NYSE:UNP - Get Free Report) last announced its earnings results on Thursday, July 23rd. The railroad operator reported $3.41 earnings per share for the quarter, beating the consensus estimate of $3.26 by $0.15. Union Pacific had a return on equity of 38.46% and a net margin of 28.85%.The firm had revenue of $6.86 billion for the quarter, compared to the consensus estimate of $6.72 billion. During the same quarter in the previous year, the business earned $3.03 EPS. The firm's revenue for the quarter was up 11.5% on a year-over-year basis. On average, sell-side analysts anticipate that Union Pacific will post 13.02 EPS for the current year.

Union Pacific Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Monday, August 31st will be issued a $1.42 dividend. This represents a $5.68 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date is Monday, August 31st. This is a positive change from Union Pacific's previous quarterly dividend of $1.38. Union Pacific's payout ratio is presently 45.99%.

About Union Pacific

Union Pacific Corporation is a transportation company that operates Union Pacific Railroad, one of the largest freight railroad networks in the United States. The company provides rail transportation and logistics services for a broad range of commodities, including agricultural products, automotive goods, chemicals, coal, industrial products, and intermodal shipments.

Union Pacific's railroad network serves the western two-thirds of the United States, connecting major markets and ports across approximately 23 states.

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