EdgePoint Investment Group Inc. Cuts Stock Holdings in Union Pacific Corporation $UNP

Key Points

• EdgePoint Investment Group cut its Union Pacific stake by 18% in the first quarter, selling 477,320 shares and retaining 2.17 million shares worth approximately $526.1 million. Institutional investors collectively own 80.38% of UNP.
• Union Pacific exceeded quarterly expectations, reporting $3.41 in earnings per share and $6.86 billion in revenue, with revenue up 11.5% year over year. The company also maintains a quarterly dividend of $1.38 per share, equivalent to a 1.8% annual yield.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $320.89. Investors are also monitoring the proposed Norfolk Southern merger, which still requires regulatory approval despite added customer protections and reduced opposition risk.

EdgePoint Investment Group Inc. trimmed its stake in Union Pacific Corporation (NYSE:UNP - Free Report) by 18.0% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 2,168,586 shares of the railroad operator's stock after selling 477,320 shares during the period. Union Pacific makes up approximately 4.2% of EdgePoint Investment Group Inc.'s portfolio, making the stock its 11th biggest holding. EdgePoint Investment Group Inc. owned approximately 0.37% of Union Pacific worth $526,142,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also bought and sold shares of UNP. Capital World Investors grew its stake in Union Pacific by 92.1% in the 4th quarter. Capital World Investors now owns 20,136,349 shares of the railroad operator's stock worth $4,658,142,000 after buying an additional 9,655,306 shares in the last quarter. Norges Bank purchased a new stake in shares of Union Pacific during the 4th quarter valued at $1,779,907,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of 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 buying an additional 3,861,636 shares in the last quarter. Capital Research Global Investors lifted its holdings in shares of Union Pacific by 26.0% during the 4th quarter. Capital Research Global Investors now owns 10,980,904 shares of the railroad operator's stock worth $2,540,105,000 after acquiring an additional 2,267,708 shares during the last quarter. Finally, Baupost Group LLC MA purchased a new position in Union Pacific in the third quarter worth $353,658,000. 80.38% of the stock is owned by hedge funds and other institutional investors.

Union Pacific Stock Performance

NYSE UNP opened at $299.47 on Tuesday. The company has a 50-day simple moving average of $275.61 and a two-hundred day simple moving average of $258.97. Union Pacific Corporation has a 12-month low of $210.84 and a 12-month high of $315.99. The firm has a market cap of $177.91 billion, a price-to-earnings ratio of 24.25, a PEG ratio of 3.16 and a beta of 0.96. The company has a quick ratio of 0.82, a current ratio of 0.99 and a debt-to-equity ratio of 1.40.

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 analysts' consensus estimates of $3.26 by $0.15. The company had revenue of $6.86 billion during the quarter, compared to analyst estimates of $6.72 billion. Union Pacific had a return on equity of 38.46% and a net margin of 28.85%.Union Pacific's revenue for the quarter was up 11.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $3.03 EPS. On average, equities analysts forecast that Union Pacific Corporation will post 12.84 EPS for the current year.

Union Pacific Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Friday, May 29th were paid a dividend of $1.38 per share. This represents a $5.52 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date of this dividend was Friday, May 29th. Union Pacific's dividend payout ratio is 44.70%.

Key Headlines Impacting Union Pacific

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

• Positive Sentiment: Merger application strengthened: Union Pacific and Norfolk Southern submitted supplemental information to the Surface Transportation Board, adding customer protections including expanded gateway pricing and assurances aimed at delivering faster, more reliable service. The commitments could improve the merger’s regulatory prospects, although approval remains pending. Union Pacific, Norfolk Southern File Supplemental Information to STB on Merger
• Positive Sentiment: Canadian National support reduces opposition risk: Canadian National reportedly will not challenge the Union Pacific–Norfolk Southern transaction under a revised arrangement that would give it access to certain shipper sites. This may remove a potential obstacle before the STB review. Canadian National won’t fight UP-NS merger under new deal
• Positive Sentiment: More bullish valuation outlook: Robert W. Baird raised its UNP price target to $344 from $311 and reiterated an “outperform” rating. Other recent coverage remains broadly favorable, including a consensus “moderate buy” recommendation and a higher $335 target from Benchmark.
• Positive Sentiment: Standalone operating case remains constructive: Recent analysis highlights service-led growth as a potential driver of improved margins and earnings. Union Pacific’s latest quarterly results also exceeded expectations, with revenue growth and earnings above consensus.
• Neutral Sentiment: Options activity signals interest, not certainty: Investors purchased approximately 10,816 UNP call options, about 44% above average volume. The activity may indicate bullish positioning but does not guarantee near-term gains.
• Negative Sentiment: Merger execution remains a risk: The proposed transaction is still subject to STB approval, and the added customer assurances could underscore the regulatory and integration challenges involved. Investors may also be taking profits after UNP approached its 52-week high.

Analysts Set New Price Targets

A number of research analysts recently commented on the company. Susquehanna increased their target price on Union Pacific from $305.00 to $333.00 and gave the company a "positive" rating in a research note on Tuesday, July 14th. Benchmark upped their price objective on Union Pacific from $325.00 to $335.00 and gave the stock a "buy" rating in a report on Friday. Citizens Jmp began coverage on Union Pacific in a research report on Wednesday, July 15th. They set an "outperform" rating and a $350.00 price objective on the stock. Bank of America raised their price objective on Union Pacific from $301.00 to $334.00 and gave the company a "buy" rating in a report on Thursday, July 23rd. Finally, TD Cowen restated a "buy" rating and issued a $325.00 target price (up from $282.00) on shares of Union Pacific in a research report on Friday. Two research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and seven have issued a Hold rating to the company's stock. According to data from MarketBeat, Union Pacific has a consensus rating of "Moderate Buy" and an average price target of $320.89.

Insider Activity

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

Union Pacific Company 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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