Dividend Assets Capital LLC Trims Stake in Union Pacific Corporation $UNP

Key Points

• Dividend Assets Capital LLC cut its Union Pacific stake by 32.1% in the first quarter, selling 8,834 shares and leaving it with 18,709 shares valued at about $4.54 million.
• Wall Street remains broadly positive on UNP, with a consensus “Moderate Buy” rating and an average price target of $283.11. Several firms recently reiterated or raised targets, including Citigroup’s $307 target.
• Union Pacific posted better-than-expected quarterly results, reporting EPS of $2.93 on revenue of $6.22 billion, while also paying a quarterly dividend of $1.38 per share for a 2.0% yield.

Dividend Assets Capital LLC lowered its position in Union Pacific Corporation (NYSE:UNP - Free Report) by 32.1% in the 1st quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 18,709 shares of the railroad operator's stock after selling 8,834 shares during the period. Dividend Assets Capital LLC's holdings in Union Pacific were worth $4,539,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds also recently made changes to their positions in UNP. Rachor Investment Advisory Services LLC purchased a new stake in Union Pacific in the fourth quarter worth $25,000. Tucker Asset Management LLC purchased a new position in Union Pacific during the fourth quarter valued at $25,000. SWAN Capital LLC boosted its holdings in shares of Union Pacific by 2,575.0% during the 4th quarter. SWAN Capital LLC now owns 107 shares of the railroad operator's stock valued at $25,000 after buying an additional 103 shares in the last quarter. High Point Wealth Management LLC bought a new stake in shares of Union Pacific during the 4th quarter valued at $26,000. Finally, Saranac Partners Ltd purchased a new stake in shares of Union Pacific in the 3rd quarter worth about $27,000. Hedge funds and other institutional investors own 80.38% of the company's stock.

Wall Street Analyst Weigh In

UNP has been the subject of several research reports. Citigroup reiterated a "buy" rating and issued a $307.00 price target (up from $285.00) on shares of Union Pacific in a research note on Friday, April 24th. Evercore restated an "outperform" rating and issued a $294.00 price objective on shares of Union Pacific in a report on Thursday, June 25th. Royal Bank Of Canada restated an "outperform" rating and issued a $289.00 price objective (up from $273.00) on shares of Union Pacific in a report on Friday, April 24th. JPMorgan Chase & Co. raised their target price on shares of Union Pacific from $267.00 to $275.00 and gave the company a "neutral" rating in a research note on Friday, April 24th. Finally, BMO Capital Markets reiterated a "market perform" rating and set a $285.00 target price (up from $278.00) on shares of Union Pacific in a report on Friday, April 24th. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $283.11.

Key Headlines Impacting Union Pacific

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

• Positive Sentiment: Union Pacific is drawing attention after a stake change, which can signal renewed investor interest and sometimes sparks buying. Union Pacific NYSE: UNP Draws Attention After Stake Change
• Positive Sentiment: Shares are being helped by commentary that rail momentum is building and UNP is hitting fresh highs, reinforcing a bullish technical and industry backdrop. Union Pacific NYSE: UNP Hits Fresh High As Rail Momentum Builds
• Positive Sentiment: Analyst and preview pieces suggest Union Pacific could post another earnings beat, with expectations for single-digit bottom-line growth and favorable freight trends. Union Pacific's Quarterly Earnings Preview: What You Need to Know
• Positive Sentiment: Brokerage coverage remains constructive, with Union Pacific still carrying a consensus “Moderate Buy” rating. Union Pacific Corporation NYSE: UNP Given Consensus Rating of "Moderate Buy" by Brokerages
• Neutral Sentiment: Some coverage notes that rising intermodal volumes are affecting major railroads, but the article frames the trend as an industry-wide dynamic rather than a company-specific catalyst. Rising intermodal volume slows big four U.S. rail systems
• Negative Sentiment: A class action was certified against Union Pacific over alleged dumping of carcinogenic chemicals in Wichita neighborhoods, adding legal and reputational risk that could weigh on the stock. Lanier Law Firm: Class Action Certified Against Union Pacific for Dumping Carcinogenic Chemicals in Historically Black Wichita Neighborhoods

Insider Buying and Selling

In related news, EVP Kenyatta G. Rocker sold 27,387 shares of the company's stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $271.76, for a total value of $7,442,691.12. Following the transaction, the executive vice president directly owned 61,102 shares of the company's stock, valued at approximately $16,605,079.52. This represents a 30.95% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Jennifer L. Hamann sold 2,000 shares of the 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 sale, the chief financial officer owned 114,642 shares in the company, valued at approximately $31,492,157.40. This represents a 1.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 32,378 shares of company stock worth $8,781,595 in the last three months. Insiders own 0.22% of the company's stock.

Union Pacific Price Performance

Shares of NYSE:UNP opened at $282.50 on Monday. The business has a fifty day moving average price of $267.68 and a 200-day moving average price of $252.36. 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 company has a market capitalization of $167.73 billion, a PE ratio of 23.27, a PEG ratio of 2.97 and a beta of 0.96. Union Pacific Corporation has a 1-year low of $210.84 and a 1-year high of $282.80.

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, topping analysts' consensus estimates of $2.86 by $0.07. Union Pacific had a net margin of 29.20% and a return on equity of 39.58%. The company had revenue of $6.22 billion for the quarter, compared to analysts' expectations of $6.12 billion. During the same quarter in the previous year, the business posted $2.70 EPS. Union Pacific's revenue was up 3.2% compared to the same quarter last year. As a group, equities analysts expect that Union Pacific Corporation will post 12.55 EPS for the current fiscal year.

Union Pacific Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Friday, May 29th were paid a $1.38 dividend. This represents a $5.52 annualized dividend and a dividend yield of 2.0%. The ex-dividend date was Friday, May 29th. Union Pacific's dividend payout ratio is currently 45.47%.

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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