Coronation Fund Managers Ltd. Makes New Investment in Union Pacific Corporation $UNP

Key Points

• Coronation Fund Managers opened a new position in Union Pacific, buying 16,150 shares worth about $3.74 million in Q4, while institutional ownership sits at roughly 80.38% as several large funds (Capital World, Capital Research, UBS) materially increased their stakes.
• Q1 results beat expectations—adjusted EPS $2.93 vs. $2.86 and revenue $6.22B vs. $6.12B—and management reaffirmed guidance, prompting multiple analyst target raises and a MarketBeat consensus of “Moderate Buy” with a $278.38 price target.
• Merger optionality resurfaced as management signaled an imminent revised filing for the proposed Norfolk Southern acquisition, but regulatory approval risks and rising fuel costs remain material headwinds.

Coronation Fund Managers Ltd. bought a new position in Union Pacific Corporation (NYSE:UNP - Free Report) during the fourth quarter, according to its most recent 13F filing with the SEC. The institutional investor bought 16,150 shares of the railroad operator's stock, valued at approximately $3,736,000.

Other institutional investors have also added to or reduced their stakes in the company. Capital World Investors increased its position in shares of Union Pacific by 193.3% during the 3rd 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 during the last quarter. Capital Research Global Investors boosted its holdings in Union Pacific by 95.0% during the 3rd quarter. Capital Research Global Investors now owns 8,713,196 shares of the railroad operator's stock valued at $2,059,538,000 after acquiring an additional 4,244,226 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Union Pacific by 72.7% during the 3rd 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 valued at $2,169,168,000 after acquiring an additional 3,861,636 shares during the period. EdgePoint Investment Group Inc. purchased a new stake in Union Pacific during the 3rd quarter valued at about $408,592,000. Finally, Baupost Group LLC MA purchased a new stake in Union Pacific during the 3rd quarter valued at about $353,658,000. 80.38% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

UNP has been the subject of several research analyst reports. Citigroup reiterated a "buy" rating and issued a $307.00 price objective (up from $285.00) on shares of Union Pacific in a report on Friday. Benchmark increased their price objective on Union Pacific from $275.00 to $300.00 and gave the stock a "buy" rating in a report on Friday. Weiss Ratings upgraded Union Pacific from a "buy (b-)" rating to a "buy (b)" rating in a report on Tuesday. Susquehanna reiterated a "buy" rating on shares of Union Pacific in a report on Monday, January 19th. Finally, UBS Group reiterated a "neutral" rating and issued a $274.00 price objective (up from $253.00) on shares of Union Pacific in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $278.38.

Union Pacific Trading Down 0.8%

NYSE UNP opened at $269.21 on Friday. Union Pacific Corporation has a fifty-two week low of $210.53 and a fifty-two week high of $274.79. The company has a debt-to-equity ratio of 1.53, a quick ratio of 0.75 and a current ratio of 0.92. The stock has a 50 day simple moving average of $251.76 and a two-hundred day simple moving average of $238.29. The stock has a market cap of $159.75 billion, a P/E ratio of 22.18, a price-to-earnings-growth ratio of 3.00 and a beta of 0.96.

Union Pacific (NYSE:UNP - Get Free Report) last released its quarterly earnings data on Thursday, April 23rd. The railroad operator reported $2.93 earnings per share for the quarter, topping the consensus estimate of $2.86 by $0.07. The business had revenue of $6.22 billion during the quarter, compared to analysts' expectations of $6.12 billion. Union Pacific had a return on equity of 39.58% and a net margin of 29.20%.The business's revenue was up 3.2% on a year-over-year basis. During the same quarter last year, the business posted $2.70 EPS. On average, analysts forecast that Union Pacific Corporation will post 12.44 earnings per share for the current year.

Union Pacific Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Friday, February 27th were paid a $1.38 dividend. This represents a $5.52 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date was Friday, February 27th. Union Pacific's dividend payout ratio (DPR) is presently 45.47%.

Key Headlines Impacting Union Pacific

Here are the key news stories impacting Union Pacific this week:

• Positive Sentiment: Q1 results beat and guidance reaffirmed — UNP reported upside to consensus (adjusted EPS $2.93, revenue ~$6.22B) and reiterated its full‑year outlook, with management highlighting efficiency gains and record net income that support near‑term earnings visibility. Business Wire: Q1 Results
• Positive Sentiment: Analysts lifting targets and ratings — Multiple firms raised price targets or reiterated buy/neutral views after the upbeat quarter, signaling Wall Street is repricing UNP higher on execution and pricing power. Benzinga: Analyst Note
• Positive Sentiment: Merger optionality resurfacing — Management said a revised regulatory filing for the proposed Norfolk Southern acquisition is imminent, keeping upside from potential synergies and deal progress in play. That comment has supported optimistic positioning. QuiverQuant: Deal Progress
• Positive Sentiment: Momentum drove a 52‑week high — The combination of the beat, guidance affirmation and deal commentary pushed UNP to fresh highs earlier this week, reflecting strong sentiment among growth/value investors. American Banking News: 12‑Month High
• Neutral Sentiment: Earnings call/transcripts available — The full Q1 call and transcripts provide detail on freight mix, pricing, merger prep and cost items for investors doing due diligence. Yahoo Finance: Earnings Highlights
• Negative Sentiment: Fuel costs threaten margins — Management warned that higher fuel prices will pressure margins, a near‑term headwind that could erode some of the beat if fuel/operating costs accelerate. MSN: Fuel Headwind
• Negative Sentiment: Regulatory and execution risks on the merger remain — The STB previously found the initial filing incomplete and merger‑related costs hit results; regulatory timing and potential additional remediation remain material risks that can re‑rate the stock if progress stalls. QuiverQuant: Regulatory Update

Insider Activity at Union Pacific

In other news, EVP Eric J. Gehringer sold 1,999 shares of the firm's stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $234.93, for a total value of $469,625.07. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.22% of the stock is currently owned by insiders.

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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