Capital International Investors Has $963.76 Million Stock Position in Union Pacific Corporation $UNP

Key Points

• Capital International Investors boosted its Union Pacific stake by 14.2% in the fourth quarter, adding 518,370 shares and bringing its holding to 4.17 million shares worth about $963.76 million.
• Union Pacific reported better-than-expected quarterly results, with EPS of $2.93 versus estimates of $2.86 and revenue of $6.22 billion versus $6.12 billion forecast, while revenue rose 3.2% year over year.
• The company also announced a quarterly dividend of $1.38 per share, payable June 30, implying a 2.0% annualized yield. Analysts remain broadly positive, with a consensus rating of Moderate Buy and an average price target of $282.21.

Capital International Investors increased its position in shares of Union Pacific Corporation (NYSE:UNP - Free Report) by 14.2% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 4,166,042 shares of the railroad operator's stock after acquiring an additional 518,370 shares during the quarter. Capital International Investors owned 0.70% of Union Pacific worth $963,756,000 as of its most recent SEC filing.

Other hedge funds have also made changes to their positions in the company. Norges Bank purchased a new position in Union Pacific during the 4th quarter worth approximately $1,779,907,000. Capital World Investors lifted its holdings in shares of Union Pacific by 193.3% in the third quarter. Capital World Investors now owns 10,481,043 shares of the railroad operator's stock valued at $2,477,404,000 after purchasing an additional 6,908,016 shares in the last quarter. Capital Research Global Investors lifted its holdings in shares of Union Pacific by 95.0% in the third quarter. Capital Research Global Investors now owns 8,713,196 shares of the railroad operator's stock valued at $2,059,538,000 after purchasing an additional 4,244,226 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Union Pacific by 72.7% in the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,177,002 shares of the railroad operator's stock worth $2,169,168,000 after buying an additional 3,861,636 shares during the period. Finally, EdgePoint Investment Group Inc. acquired a new stake in shares of Union Pacific in the third quarter worth $408,592,000. Hedge funds and other institutional investors own 80.38% of the company's stock.

Insider Activity

In related news, CFO Jennifer L. Hamann sold 2,000 shares of Union Pacific stock in a transaction on Friday, April 24th. The shares were sold at an average price of $274.70, for a total value of $549,400.00. Following the completion of the sale, the chief financial officer owned 114,642 shares of the company's stock, valued at approximately $31,492,157.40. The trade was a 1.71% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Eric J. Gehringer sold 2,991 shares of the company's 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 owned 43,012 shares of the company's stock, valued at $11,353,447.52. This represents a 6.50% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 34,377 shares of company stock worth $9,251,221. 0.22% of the stock is owned by corporate insiders.

Union Pacific Stock Performance

Shares of UNP stock opened at $272.28 on Monday. Union Pacific Corporation has a fifty-two week low of $210.84 and a fifty-two week high of $279.70. The stock's 50-day moving average is $259.32 and its two-hundred day moving average is $247.21. The company has a debt-to-equity ratio of 1.53, a current ratio of 0.92 and a quick ratio of 0.73. The firm has a market cap of $161.66 billion, a P/E ratio of 22.43, a PEG ratio of 2.89 and a beta of 0.97.

Union Pacific (NYSE:UNP - Get Free Report) last announced its quarterly earnings results on Thursday, April 23rd. The railroad operator reported $2.93 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.86 by $0.07. The business had revenue of $6.22 billion during the quarter, compared to analyst estimates of $6.12 billion. Union Pacific had a return on equity of 39.58% and a net margin of 29.20%.The firm's revenue was up 3.2% on a year-over-year basis. During the same period in the previous year, the company earned $2.70 EPS. Analysts predict that Union Pacific Corporation will post 12.53 earnings per share for the current fiscal year.

Union Pacific Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Friday, May 29th will be paid a dividend of $1.38 per share. The ex-dividend date is Friday, May 29th. This represents a $5.52 annualized dividend and a dividend yield of 2.0%. Union Pacific's dividend payout ratio is 45.47%.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on UNP shares. Royal Bank Of Canada reissued an "outperform" rating and issued a $289.00 price objective (up from $273.00) on shares of Union Pacific in a research note on Friday, April 24th. Raymond James Financial set a $310.00 target price on Union Pacific in a report on Friday, April 24th. Evercore reissued an "outperform" rating and issued a $277.00 price target on shares of Union Pacific in a research report on Friday, April 24th. UBS Group restated a "neutral" rating and set a $274.00 price target (up from $253.00) on shares of Union Pacific in a report on Friday, April 24th. Finally, Weiss Ratings raised shares of Union Pacific from a "buy (b-)" rating to a "buy (b)" rating in a research report on Tuesday, April 21st. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and eight have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $282.21.

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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