Union Pacific Corporation (NYSE:UNP) Stock Has Average Price Target of $325.72 According to Analysts

Key Points

• Analysts maintain a moderately bullish view of Union Pacific, with 15 buy, 2 strong-buy and 4 hold ratings. The average 12-month price target is $325.72, above the stock’s reported $278.32 opening price.
• Union Pacific exceeded quarterly expectations, reporting $3.41 in EPS versus the $3.26 consensus and $6.86 billion in revenue, up 11.5% year over year.
• The company raised its quarterly dividend from $1.38 to $1.42 per share, equivalent to a $5.68 annualized payout and approximately a 2.0% yield.

Shares of Union Pacific Corporation (NYSE:UNP - Get Free Report) have received an average recommendation of "Moderate Buy" from the twenty-one research firms that are currently covering the firm, Marketbeat reports. Four investment analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and two have issued a strong buy rating on the company. The average twelve-month price target among brokerages that have issued a report on the stock in the last year is $325.72.

UNP has been the topic of a number of recent analyst reports. JPMorgan Chase & Co. decreased their price target on Union Pacific from $334.00 to $322.00 and set a "neutral" rating on the stock in a report on Monday, October 5th. Erste Group Bank started coverage on Union Pacific in a research note on Thursday, August 27th. They issued a "buy" rating for the company. Susquehanna cut their target price on Union Pacific from $345.00 to $333.00 and set a "positive" rating for the company in a research report on Friday, October 2nd. Robert W. Baird lifted their target price on Union Pacific from $311.00 to $344.00 and gave the company an "outperform" rating in a research note on Monday, July 27th. Finally, UBS Group raised Union Pacific from a "neutral" rating to a "buy" rating and lifted their target price for the company from $310.00 to $339.00 in a research note on Wednesday, September 16th.

Union Pacific Stock Up 0.0%

Shares of UNP stock opened at $278.32 on Friday. The company has a market capitalization of $165.34 billion, a price-to-earnings ratio of 22.54, a PEG ratio of 2.77 and a beta of 0.95. Union Pacific has a one year low of $215.53 and a one year high of $315.99. The company's fifty day moving average price is $288.63 and its 200-day moving average price is $275.00. The company has a debt-to-equity ratio of 1.40, a current ratio of 0.99 and a quick ratio of 0.82.

Union Pacific (NYSE:UNP - Get Free Report) last released its earnings results on Thursday, July 23rd. The railroad operator reported $3.41 earnings per share for the quarter, beating analysts' consensus estimates of $3.26 by $0.15. The company had revenue of $6.86 billion for the quarter, compared to analysts' expectations of $6.72 billion. Union Pacific had a net margin of 28.85% and a return on equity of 38.46%. Union Pacific's revenue for the quarter was up 11.5% on a year-over-year basis. During the same quarter in the previous year, the company earned $3.03 EPS. Sell-side analysts expect that Union Pacific will post 13.03 EPS for the current fiscal year.

Union Pacific Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, August 31st were given a dividend of $1.42 per share. The ex-dividend date was Monday, August 31st. This is an increase from Union Pacific's previous quarterly dividend of $1.38. This represents a $5.68 annualized dividend and a dividend yield of 2.0%. Union Pacific's dividend payout ratio (DPR) is 45.99%.

Hedge Funds Weigh In On Union Pacific

Hedge funds and other institutional investors have recently modified their holdings of the stock. Cambient Family Office LLC purchased a new position in shares of Union Pacific during the fourth quarter valued at about $1,319,000. First National Bank of Omaha lifted its position in shares of Union Pacific by 35.8% in the fourth quarter. First National Bank of Omaha now owns 54,635 shares of the railroad operator's stock worth $12,665,000 after buying an additional 14,399 shares in the last quarter. BNP Paribas lifted its position in shares of Union Pacific by 21.5% in the second quarter. BNP Paribas now owns 60,465 shares of the railroad operator's stock worth $16,454,000 after buying an additional 10,706 shares in the last quarter. KBC Group NV boosted its stake in Union Pacific by 17.7% during the second quarter. KBC Group NV now owns 108,489 shares of the railroad operator's stock valued at $29,509,000 after buying an additional 16,295 shares during the last quarter. Finally, QRG Capital Management Inc. boosted its stake in Union Pacific by 9.4% during the second quarter. QRG Capital Management Inc. now owns 102,949 shares of the railroad operator's stock valued at $28,002,000 after buying an additional 8,842 shares during the last quarter. Institutional investors own 80.38% of the company's stock.

Union Pacific Company Profile

Union Pacific Corporation NYSE: UNP is a freight railroad company that operates one of the largest rail networks in North America. Through its principal subsidiary, Union Pacific Railroad, the company provides transportation services for businesses across the western two-thirds of the United States.

Union Pacific transports a broad range of commodities and manufactured goods, including agricultural products, automotive vehicles and parts, chemicals, coal, industrial products, forest products, and intermodal containers.

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