Capital World Investors Raises Holdings in Union Pacific Corporation $UNP

Key Points

• Capital World Investors boosted its stake in Union Pacific by 193.3% in the third quarter to 10,481,043 shares, about 1.77% of the company worth roughly $2.48 billion.
• Union Pacific slightly missed quarterly estimates (EPS $2.86 vs. $2.92; revenue $6.09B vs. $6.15B), with revenue down 0.6% year‑over‑year; the stock trades near $253.20 and has a P/E of 21.15.
• Analysts' consensus is a "Moderate Buy" (1 Strong Buy, 14 Buy, 9 Hold) with a $263.77 target, and the company declared a $1.38 quarterly dividend ($5.52 annualized) for about a 2.2% yield.

Capital World Investors lifted its position in shares of Union Pacific Corporation (NYSE:UNP - Free Report) by 193.3% in the 3rd quarter, according to its most recent 13F filing with the SEC. The firm owned 10,481,043 shares of the railroad operator's stock after acquiring an additional 6,908,016 shares during the quarter. Capital World Investors owned approximately 1.77% of Union Pacific worth $2,477,404,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in UNP. Acadian Asset Management LLC increased its stake in shares of Union Pacific by 40.4% in the first quarter. Acadian Asset Management LLC now owns 2,312 shares of the railroad operator's stock worth $546,000 after purchasing an additional 665 shares in the last quarter. Schnieders Capital Management LLC. lifted its stake 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 buying an additional 102 shares in the last quarter. AE Wealth Management LLC boosted its holdings in Union Pacific by 4.7% in the 2nd quarter. AE Wealth Management LLC now owns 26,429 shares of the railroad operator's stock worth $6,081,000 after buying an additional 1,180 shares during the period. AGF Management Ltd. grew its stake in Union Pacific by 412.7% in the 2nd quarter. AGF Management Ltd. now owns 16,483 shares of the railroad operator's stock valued at $3,792,000 after buying an additional 13,268 shares in the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. grew its stake in Union Pacific by 21.7% in the 2nd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 57,498 shares of the railroad operator's stock valued at $13,229,000 after buying an additional 10,255 shares in the last quarter. 80.38% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the company. Raymond James Financial reaffirmed a "strong-buy" rating on shares of Union Pacific in a report on Tuesday, January 27th. JPMorgan Chase & Co. cut their target price on Union Pacific from $270.00 to $265.00 and set a "neutral" rating for the company in a research note on Wednesday, January 28th. The Goldman Sachs Group reiterated a "neutral" rating and set a $267.00 price target on shares of Union Pacific in a research report on Tuesday, January 27th. Citigroup restated a "buy" rating and issued a $270.00 price objective (up from $265.00) on shares of Union Pacific in a research report on Wednesday, January 28th. Finally, TD Cowen decreased their target price on shares of Union Pacific from $257.00 to $255.00 and set a "buy" rating on the stock in a report on Wednesday, January 28th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $263.77.

Union Pacific Trading Down 0.4%

NYSE UNP opened at $253.20 on Tuesday. The stock has a market cap of $150.25 billion, a P/E ratio of 21.15, a price-to-earnings-growth ratio of 2.77 and a beta of 0.95. Union Pacific Corporation has a fifty-two week low of $204.66 and a fifty-two week high of $268.14. The stock has a 50 day simple moving average of $245.27 and a two-hundred day simple moving average of $233.25. The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.75 and a current ratio of 0.91.

Union Pacific (NYSE:UNP - Get Free Report) last announced its earnings results on Tuesday, January 27th. The railroad operator reported $2.86 EPS for the quarter, missing analysts' consensus estimates of $2.92 by ($0.06). The business had revenue of $6.09 billion for the quarter, compared to the consensus estimate of $6.15 billion. Union Pacific had a net margin of 29.12% and a return on equity of 40.89%. Union Pacific's revenue was down .6% compared to the same quarter last year. During the same quarter in the prior year, the company earned $2.91 EPS. On average, analysts forecast that Union Pacific Corporation will post 11.99 earnings per share for the current year.

Union Pacific Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Friday, February 27th will be given a dividend of $1.38 per share. This represents a $5.52 annualized dividend and a yield of 2.2%. The ex-dividend date of this dividend is Friday, February 27th. Union Pacific's payout ratio is presently 46.12%.

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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