Ferguson Wellman Capital Management Inc. Trims Stake in Union Pacific Corporation $UNP

Key Points

• Ferguson Wellman Capital Management Inc. reduced its stake in Union Pacific Corporation by 3.8%, holding 47,216 shares valued at approximately $10.86 million at the end of the second quarter.
• Union Pacific announced a quarterly dividend increase to $1.38 per share, up from $1.34, providing an annualized yield of 2.5% and a payout ratio of 47.96%.
• Analysts have mixed opinions on Union Pacific, with a consensus rating of "Moderate Buy" and an average price target of $259.38, alongside various revisions to price objectives from several major investment firms.

Ferguson Wellman Capital Management Inc. trimmed its position in Union Pacific Corporation (NYSE:UNP - Free Report) by 3.8% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 47,216 shares of the railroad operator's stock after selling 1,875 shares during the quarter. Ferguson Wellman Capital Management Inc.'s holdings in Union Pacific were worth $10,863,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also made changes to their positions in the company. Northern Trust Corp boosted its position in shares of Union Pacific by 2.0% during the 1st quarter. Northern Trust Corp now owns 7,105,382 shares of the railroad operator's stock valued at $1,678,575,000 after acquiring an additional 142,732 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its holdings in Union Pacific by 5.4% in the first quarter. Price T Rowe Associates Inc. MD now owns 6,949,345 shares of the railroad operator's stock valued at $1,641,715,000 after acquiring an additional 354,463 shares during the last quarter. Royal Bank of Canada lifted its stake in shares of Union Pacific by 1.7% in the 1st quarter. Royal Bank of Canada now owns 5,105,784 shares of the railroad operator's stock valued at $1,206,191,000 after purchasing an additional 86,292 shares during the period. Canada Pension Plan Investment Board increased its stake in shares of Union Pacific by 10.8% in the 1st quarter. Canada Pension Plan Investment Board now owns 4,626,200 shares of the railroad operator's stock valued at $1,092,893,000 after acquiring an additional 452,788 shares during the last quarter. Finally, Nuveen LLC acquired a new position in shares of Union Pacific in the 1st quarter valued at $988,822,000. Institutional investors own 80.38% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on UNP. Jefferies Financial Group raised Union Pacific from a "hold" rating to a "buy" rating and upped their price objective for the stock from $250.00 to $285.00 in a research report on Friday, July 25th. Evercore ISI lowered their target price on Union Pacific from $244.00 to $238.00 and set an "in-line" rating on the stock in a research report on Friday, July 25th. Loop Capital raised Union Pacific from a "sell" rating to a "hold" rating and increased their price objective for the company from $214.00 to $227.00 in a report on Tuesday, September 16th. UBS Group boosted their target price on shares of Union Pacific from $238.00 to $240.00 and gave the stock a "neutral" rating in a report on Friday, July 25th. Finally, Robert W. Baird started coverage on shares of Union Pacific in a research note on Tuesday, July 1st. They set a "neutral" rating and a $231.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $259.38.

Union Pacific Stock Up 0.2%

UNP stock traded up $0.50 during trading on Friday, reaching $220.86. 8,631,770 shares of the stock were exchanged, compared to its average volume of 4,396,240. The company has a current ratio of 0.65, a quick ratio of 0.53 and a debt-to-equity ratio of 1.86. Union Pacific Corporation has a twelve month low of $204.66 and a twelve month high of $256.84. The firm's 50 day moving average is $222.66 and its 200 day moving average is $225.01. The firm has a market cap of $130.98 billion, a P/E ratio of 19.19, a price-to-earnings-growth ratio of 2.14 and a beta of 1.03.

Union Pacific (NYSE:UNP - Get Free Report) last issued its quarterly earnings data on Thursday, July 24th. The railroad operator reported $3.03 earnings per share for the quarter, beating the consensus estimate of $2.84 by $0.19. Union Pacific had a return on equity of 41.73% and a net margin of 28.43%.The business had revenue of $6.15 billion for the quarter, compared to analysts' expectations of $6.09 billion. During the same period last year, the business earned $2.74 EPS. The business's revenue was up 2.4% on a year-over-year basis. As a group, research analysts forecast that Union Pacific Corporation will post 11.99 EPS for the current year.

Union Pacific Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Friday, August 29th will be paid a $1.38 dividend. This is an increase from Union Pacific's previous quarterly dividend of $1.34. The ex-dividend date of this dividend is Friday, August 29th. This represents a $5.52 dividend on an annualized basis and a yield of 2.5%. Union Pacific's payout ratio is presently 47.96%.

About Union Pacific

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. The company offers transportation services for grain and grain products, fertilizers, food and refrigerated products, and coal and renewables to grain processors, animal feeders, ethanol producers, renewable biofuel producers, and other agricultural users; and construction products, industrial chemicals, plastics, forest products, specialized products, metals and ores, petroleum, liquid petroleum gases, soda ash, and sand, as well as finished automobiles, automotive parts, and merchandise in intermodal containers.