Alyeska Investment Group L.P. Makes New $16.25 Million Investment in Union Pacific Corporation $UNP

Key Points

• Alyeska Investment Group initiated a $16.25 million position in Union Pacific by purchasing 59,728 shares during the second quarter. Institutional investors and hedge funds collectively own 80.38% of the company.
• Union Pacific reported stronger-than-expected quarterly results, with earnings of $3.41 per share and revenue of $6.86 billion, up 11.5% year over year. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $320.89.
• The company raised its quarterly dividend from $1.38 to $1.42 per share, equivalent to $5.68 annually and a 1.9% yield. Shares recently traded at $301.28, down 2.0%.

Alyeska Investment Group L.P. bought a new stake in Union Pacific Corporation (NYSE:UNP - Free Report) in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 59,728 shares of the railroad operator's stock, valued at approximately $16,246,000.

Other hedge funds have also modified their holdings of the company. Acadian Asset Management LLC increased its stake in shares of Union Pacific by 40.4% in the 1st quarter. Acadian Asset Management LLC now owns 2,312 shares of the railroad operator's stock worth $546,000 after acquiring an additional 665 shares during the last quarter. Schnieders Capital Management LLC. boosted its position in shares of Union Pacific by 0.5% during the 2nd quarter. Schnieders Capital Management LLC. now owns 20,606 shares of the railroad operator's stock valued at $4,741,000 after acquiring an additional 102 shares during the last quarter. Main Street Financial Solutions LLC boosted its position in shares of Union Pacific by 1.6% during the 2nd quarter. Main Street Financial Solutions LLC now owns 3,733 shares of the railroad operator's stock valued at $859,000 after acquiring an additional 58 shares during the last quarter. HUB Investment Partners LLC grew its holdings in shares of Union Pacific by 10.0% in the second quarter. HUB Investment Partners LLC now owns 6,091 shares of the railroad operator's stock valued at $1,401,000 after purchasing an additional 554 shares during the period. Finally, Alliancebernstein L.P. grew its holdings in shares of Union Pacific by 7.4% in the second quarter. Alliancebernstein L.P. now owns 1,528,426 shares of the railroad operator's stock valued at $351,660,000 after purchasing an additional 105,664 shares during the period. 80.38% of the stock is currently owned by institutional investors and hedge funds.

Union Pacific Stock Down 2.0%

Shares of UNP opened at $301.28 on Tuesday. The firm has a market cap of $178.98 billion, a P/E ratio of 24.40, a price-to-earnings-growth ratio of 3.06 and a beta of 0.96. Union Pacific Corporation has a 12-month low of $210.84 and a 12-month high of $315.99. The company's 50-day moving average price is $291.90 and its 200 day moving average price is $270.19. The company has a current ratio of 0.99, a quick ratio of 0.82 and a debt-to-equity ratio of 1.40.

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, topping the consensus estimate of $3.26 by $0.15. Union Pacific had a net margin of 28.85% and a return on equity of 38.46%. The company had revenue of $6.86 billion during the quarter, compared to analyst estimates of $6.72 billion. During the same quarter last year, the firm posted $3.03 earnings per share. Union Pacific's revenue was up 11.5% compared to the same quarter last year. On average, sell-side analysts forecast that Union Pacific Corporation will post 13.01 earnings per share for the current year.

Union Pacific Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, August 31st will be issued a $1.42 dividend. The ex-dividend date is Monday, August 31st. This represents a $5.68 annualized dividend and a dividend yield of 1.9%. This is an increase from Union Pacific's previous quarterly dividend of $1.38. Union Pacific's dividend payout ratio (DPR) is currently 44.70%.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on UNP. Weiss Ratings upgraded shares of Union Pacific from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, July 24th. Benchmark boosted their target price on shares of Union Pacific from $325.00 to $335.00 and gave the company a "buy" rating in a report on Friday, July 24th. Royal Bank Of Canada reissued an "outperform" rating and issued a $339.00 price target (up from $289.00) on shares of Union Pacific in a research note on Friday, July 24th. UBS Group restated a "neutral" rating and set a $310.00 price target (up from $286.00) on shares of Union Pacific in a report on Friday, July 24th. Finally, JPMorgan Chase & Co. lifted their price target on shares of Union Pacific from $304.00 to $334.00 and gave the company a "neutral" rating in a research report on Friday, July 24th. Two research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, Union Pacific presently has an average rating of "Moderate Buy" and an average price target of $320.89.

Insider Activity at Union Pacific

In related news, EVP Eric J. Gehringer sold 2,991 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $263.96, for a total transaction of $789,504.36. Following the completion of the transaction, the executive vice president owned 43,012 shares of the company's stock, valued at approximately $11,353,447.52. This trade represents a 6.50% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.22% of the company's stock.

Union Pacific Company Profile

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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