Axiom Investment Management LLC Takes $9.15 Million Position in Union Pacific Corporation $UNP

Key Points

• Axiom Investment Management acquired a new $9.15 million stake in Union Pacific, making the railroad operator its largest holding at 7% of the portfolio. Institutional investors collectively own 80.38% of Union Pacific.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $320.89; several firms recently raised their targets to between $333 and $349.
• Union Pacific exceeded quarterly expectations, reporting $3.41 in EPS and $6.86 billion in revenue, while revenue rose 11.5% year over year. The company also increased its quarterly dividend to $1.42, implying a 1.9% yield.

Axiom Investment Management LLC acquired a new stake in Union Pacific Corporation (NYSE:UNP - Free Report) in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund acquired 37,719 shares of the railroad operator's stock, valued at approximately $9,151,000. Union Pacific comprises 7.0% of Axiom Investment Management LLC's holdings, making the stock its biggest position.

A number of other hedge funds have also modified their holdings of the business. Cambient Family Office LLC bought a new position in shares of Union Pacific during the fourth quarter valued at about $1,319,000. First National Bank of Omaha boosted its holdings in Union Pacific by 35.8% in the 4th quarter. First National Bank of Omaha now owns 54,635 shares of the railroad operator's stock valued at $12,665,000 after purchasing an additional 14,399 shares during the period. North Dakota State Investment Board purchased a new position in Union Pacific in the 4th quarter worth approximately $4,746,000. Sage Investment Advisers LLC purchased a new stake in shares of Union Pacific in the 4th quarter valued at $997,000. Finally, Truist Financial Corp lifted its stake in shares of Union Pacific by 3.1% in the 4th quarter. Truist Financial Corp now owns 1,016,071 shares of the railroad operator's stock valued at $235,038,000 after acquiring an additional 30,079 shares during the last quarter. 80.38% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the company. Citigroup lifted their price objective on Union Pacific from $326.00 to $349.00 and gave the stock a "buy" rating in a research report on Friday, July 24th. JPMorgan Chase & Co. raised their target price on Union Pacific from $304.00 to $334.00 and gave the company a "neutral" rating in a research note on Friday, July 24th. Raymond James Financial reissued a "strong-buy" rating on shares of Union Pacific in a research note on Monday, July 13th. UBS Group reaffirmed a "neutral" rating and set a $310.00 target price (up from $286.00) on shares of Union Pacific in a research note on Friday, July 24th. Finally, Susquehanna boosted their price objective on shares of Union Pacific from $305.00 to $333.00 and gave the stock a "positive" rating in a report on Tuesday, July 14th. Two research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $320.89.

Union Pacific Price Performance

Union Pacific stock opened at $291.83 on Friday. Union Pacific Corporation has a 52-week low of $210.84 and a 52-week high of $315.99. The company has a quick ratio of 0.82, a current ratio of 0.99 and a debt-to-equity ratio of 1.40. The firm's fifty day moving average is $277.60 and its 200 day moving average is $260.55. The company has a market cap of $173.37 billion, a price-to-earnings ratio of 23.63, a PEG ratio of 2.96 and a beta of 0.96.

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 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 company posted $3.03 EPS. The company's revenue for the quarter was up 11.5% compared to the same quarter last year. Sell-side analysts forecast that Union Pacific Corporation will post 12.9 EPS for the current fiscal year.

Union Pacific Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Monday, August 31st will be given a $1.42 dividend. This is a boost from Union Pacific's previous quarterly dividend of $1.38. The ex-dividend date of this dividend is Monday, August 31st. This represents a $5.68 annualized dividend and a yield of 1.9%. Union Pacific's dividend payout ratio is currently 44.70%.

Insider Buying and Selling at Union Pacific

In other news, EVP Eric J. Gehringer sold 2,991 shares of Union Pacific stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $263.96, for a total transaction of $789,504.36. Following the completion of the sale, the executive vice president directly owned 43,012 shares in the company, valued at approximately $11,353,447.52. This trade represents a 6.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 0.22% of the company's stock.

Union Pacific 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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