Element Capital Management LLC Makes New Investment in Union Pacific Corporation $UNP

Key Points

• Element Capital Management acquired a new stake of 25,511 shares of Union Pacific in Q3 valued at about $6.03 million, making UNP 8.5% of the fund's portfolio and its fourth-largest holding.
• Union Pacific reported $2.86 EPS for the quarter versus $2.92 expected and $6.09 billion revenue versus $6.15 billion expected (revenue down 0.6% YoY), while maintaining a strong net margin of 29.12% and ROE of 40.89%.
• Analysts hold a consensus "Moderate Buy" with a $263.77 price target, and the company announced a quarterly dividend of $1.38 (annualized $5.52), implying a 2.3% yield.

Element Capital Management LLC acquired a new stake in shares of Union Pacific Corporation (NYSE:UNP - Free Report) during the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund acquired 25,511 shares of the railroad operator's stock, valued at approximately $6,030,000. Union Pacific comprises 8.5% of Element Capital Management LLC's portfolio, making the stock its 4th largest holding.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Caitlin John LLC purchased a new position in shares of Union Pacific during the 3rd quarter worth about $27,000. Howard Hughes Medical Institute bought a new position in Union Pacific during the 2nd quarter valued at about $30,000. Total Investment Management Inc. purchased a new stake in Union Pacific in the 2nd quarter worth about $31,000. Financial Gravity Companies Inc. bought a new stake in Union Pacific in the second quarter worth about $31,000. Finally, Sagard Holdings Management Inc. bought a new stake in Union Pacific in the second quarter worth about $33,000. Hedge funds and other institutional investors own 80.38% of the company's stock.

Analyst Ratings Changes

UNP has been the topic of a number of analyst reports. Deutsche Bank Aktiengesellschaft set a $245.00 target price on Union Pacific in a research note on Thursday, December 11th. Citigroup reissued a "buy" rating and set a $270.00 price target (up from $265.00) on shares of Union Pacific in a research note on Wednesday, January 28th. Royal Bank Of Canada set a $280.00 price objective on Union Pacific in a report on Thursday, December 18th. TD Cowen cut their price objective on Union Pacific from $257.00 to $255.00 and set a "buy" rating on the stock in a research report on Wednesday, January 28th. Finally, Susquehanna reiterated a "buy" rating on shares of Union Pacific in a research note on Monday, January 19th. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and nine have given a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $263.77.

Union Pacific Stock Performance

Shares of NYSE:UNP opened at $242.22 on Friday. The firm's 50 day simple moving average is $246.47 and its 200-day simple moving average is $233.81. 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 Corporation has a one year low of $204.66 and a one year high of $268.14. The firm has a market cap of $143.73 billion, a PE ratio of 20.24, a price-to-earnings-growth ratio of 2.65 and a beta of 0.95.

Union Pacific (NYSE:UNP - Get Free Report) last announced its quarterly earnings results on Tuesday, January 27th. The railroad operator reported $2.86 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.92 by ($0.06). Union Pacific had a net margin of 29.12% and a return on equity of 40.89%. The firm had revenue of $6.09 billion during the quarter, compared to analysts' expectations of $6.15 billion. During the same quarter in the previous year, the firm posted $2.91 EPS. The firm's revenue for the quarter was down .6% on a year-over-year basis. As a group, equities analysts predict that Union Pacific Corporation will post 11.99 EPS for the current year.

Union Pacific Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Friday, February 27th will be issued a $1.38 dividend. This represents a $5.52 annualized dividend and a dividend yield of 2.3%. The ex-dividend date is Friday, February 27th. Union Pacific's dividend payout ratio is currently 46.12%.

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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