Empowered Funds LLC Sells 11,909 Shares of Union Pacific Corporation $UNP

Key Points

• Empowered Funds LLC cut its Union Pacific stake by 14.6% in the first quarter, selling 11,909 shares and retaining 69,927 shares valued at approximately $16.97 million. Institutional investors collectively own 80.38% of the company.
• Union Pacific reported stronger-than-expected quarterly results, with EPS of $3.41 and revenue of $6.86 billion, up 11.5% year over year. The company also maintains a $1.38 quarterly dividend, equivalent to a 1.9% yield.
• The proposed Union Pacific–Norfolk Southern merger gained support from additional customer protections and reduced opposition from Canadian National, but STB approval remains uncertain. Analysts remain generally bullish, with a “Moderate Buy” consensus and an average price target of $320.89.

Empowered Funds LLC lessened its stake in Union Pacific Corporation (NYSE:UNP - Free Report) by 14.6% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 69,927 shares of the railroad operator's stock after selling 11,909 shares during the period. Empowered Funds LLC's holdings in Union Pacific were worth $16,966,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other large investors have also added to or reduced their stakes in the company. Vanguard Group Inc. boosted its holdings in shares of Union Pacific by 1.1% in the 4th quarter. Vanguard Group Inc. now owns 59,329,262 shares of the railroad operator's stock valued at $13,724,045,000 after buying an additional 659,378 shares in the last quarter. State Street Corp raised its stake in shares of Union Pacific by 4.3% during the 4th quarter. State Street Corp now owns 26,330,080 shares of the railroad operator's stock worth $6,090,674,000 after acquiring an additional 1,082,285 shares in the last quarter. Capital World Investors raised its stake in shares of Union Pacific by 92.1% during the 4th quarter. Capital World Investors now owns 20,136,349 shares of the railroad operator's stock worth $4,658,142,000 after acquiring an additional 9,655,306 shares in the last quarter. Geode Capital Management LLC raised its stake in shares of Union Pacific by 2.0% during the 4th quarter. Geode Capital Management LLC now owns 15,360,668 shares of the railroad operator's stock worth $3,552,550,000 after acquiring an additional 296,814 shares in the last quarter. Finally, Morgan Stanley lifted its position in Union Pacific by 5.0% during the fourth quarter. Morgan Stanley now owns 12,636,050 shares of the railroad operator's stock valued at $2,922,971,000 after acquiring an additional 602,647 shares during the last quarter. 80.38% of the stock is currently owned by institutional investors.

Key Headlines Impacting Union Pacific

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

• Positive Sentiment: Union Pacific and Norfolk Southern submitted additional customer protections to the Surface Transportation Board (STB), including expanded gateway pricing and temporary access to competing rail service if performance deteriorates. The commitments are intended to address shipper concerns and improve the merger’s chances of regulatory approval. Union Pacific, Norfolk Southern add new customer protections as STB merger review advances
• Positive Sentiment: Canadian National reportedly will not oppose the transaction under the revised arrangement, which would give CN access to certain shipper facilities facing fewer Class I railroad options. Reduced opposition may help the regulatory review advance. Canadian National won’t fight UP-NS merger under new deal
• Positive Sentiment: Robert W. Baird raised its Union Pacific price target to $344 from $311 and maintained an “outperform” rating, citing potential upside from the company’s operating outlook. Baird raises Union Pacific price target
• Positive Sentiment: Unusual options activity and recent analyst commentary point to continued investor interest in Union Pacific’s service-led growth strategy, margin improvement potential and standalone earnings prospects.
• Neutral Sentiment: Union Pacific’s second-quarter results exceeded expectations, with earnings of $3.41 per share and revenue of $6.86 billion. Revenue increased 11.5% year over year, providing fundamental support for the stock, although valuation remains elevated at roughly 24 times earnings.
• Negative Sentiment: The merger remains subject to STB approval, and the new customer guarantees could increase execution obligations and limit some of the anticipated financial benefits. Investors are also comparing UNP’s operating growth with Norfolk Southern’s more event-driven merger valuation, contributing to near-term uncertainty. Union Pacific, Norfolk Southern file supplemental information to STB on merger

Insider Buying and Selling at Union Pacific

In other news, EVP Eric J. Gehringer sold 2,991 shares of the business's stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $263.96, for a total transaction of $789,504.36. Following the sale, 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 hyperlink. 0.22% of the stock is owned by company insiders.

Union Pacific Stock Performance

Shares of Union Pacific stock opened at $294.48 on Wednesday. The company has a 50 day moving average price of $276.08 and a 200 day moving average price of $259.46. The firm has a market capitalization of $174.94 billion, a P/E ratio of 23.84, a PEG ratio of 3.08 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 Corporation has a 52 week low of $210.84 and a 52 week high of $315.99.

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, topping the consensus estimate of $3.26 by $0.15. Union Pacific had a net margin of 28.85% and a return on equity of 38.46%. The company had revenue of $6.86 billion for the quarter, compared to the consensus estimate of $6.72 billion. During the same quarter in the previous year, the firm earned $3.03 EPS. Union Pacific's revenue was up 11.5% compared to the same quarter last year. Sell-side analysts expect that Union Pacific Corporation will post 12.84 EPS for the current year.

Union Pacific Dividend Announcement

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 annualized dividend and a dividend yield of 1.9%. The ex-dividend date was Friday, May 29th. Union Pacific's payout ratio is presently 44.70%.

Analyst Ratings Changes

UNP has been the subject of several recent analyst reports. Robert W. Baird raised their target price on shares of Union Pacific from $311.00 to $344.00 and gave the company an "outperform" rating in a research note on Monday. Citigroup upped their price target on Union Pacific from $326.00 to $349.00 and gave the stock a "buy" rating in a research report on Friday, July 24th. UBS Group reiterated a "neutral" rating and set a $310.00 price objective (up from $286.00) on shares of Union Pacific in a report on Friday. Stephens raised Union Pacific to a "strong-buy" rating in a research report on Wednesday, July 8th. Finally, Weiss Ratings upgraded Union Pacific from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $320.89.

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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