Fifth Third Bancorp Buys 228,567 Shares of Union Pacific Corporation $UNP

Key Points

• Fifth Third Bancorp increased its Union Pacific stake by 40.4% in the first quarter, buying 228,567 additional shares and bringing its total holding to 793,795 shares worth about $192.6 million.
• Union Pacific reported better-than-expected quarterly results, posting EPS of $2.93 versus $2.86 expected and revenue of $6.22 billion versus $6.12 billion expected, with revenue up 3.2% year over year.
• The stock has seen support from analysts, with multiple firms raising price targets and the consensus view remaining a Moderate Buy with a target price of $290.39, while the company also pays a quarterly dividend of $1.38 per share.

Fifth Third Bancorp boosted its stake in shares of Union Pacific Corporation (NYSE:UNP - Free Report) by 40.4% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 793,795 shares of the railroad operator's stock after purchasing an additional 228,567 shares during the period. Fifth Third Bancorp owned about 0.13% of Union Pacific worth $192,591,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also bought and sold shares of UNP. Acadian Asset Management LLC lifted its stake in shares of Union Pacific by 40.4% in the 1st quarter. Acadian Asset Management LLC now owns 2,312 shares of the railroad operator's stock valued at $546,000 after purchasing an additional 665 shares during the last quarter. Schnieders Capital Management LLC. raised its holdings in Union Pacific by 0.5% during the 2nd quarter. Schnieders Capital Management LLC. now owns 20,606 shares of the railroad operator's stock valued at $4,741,000 after buying an additional 102 shares during the period. Main Street Financial Solutions LLC raised its holdings in Union Pacific by 1.6% during the 2nd quarter. Main Street Financial Solutions LLC now owns 3,733 shares of the railroad operator's stock valued at $859,000 after buying an additional 58 shares during the period. HUB Investment Partners LLC lifted its position in Union Pacific by 10.0% in the second quarter. HUB Investment Partners LLC now owns 6,091 shares of the railroad operator's stock worth $1,401,000 after buying an additional 554 shares during the last quarter. Finally, Alliancebernstein L.P. boosted its stake in Union Pacific by 7.4% during the second quarter. Alliancebernstein L.P. now owns 1,528,426 shares of the railroad operator's stock worth $351,660,000 after buying an additional 105,664 shares during the period. Hedge funds and other institutional investors own 80.38% of the company's stock.

Union Pacific Stock Up 0.8%

NYSE UNP traded up $2.23 on Friday, reaching $287.27. 1,876,184 shares of the stock traded hands, compared to its average volume of 2,394,006. Union Pacific Corporation has a 12 month low of $210.84 and a 12 month high of $288.90. The company has a market cap of $170.55 billion, a price-to-earnings ratio of 23.66, a PEG ratio of 3.02 and a beta of 0.96. The company has a fifty day moving average price of $269.23 and a 200-day moving average price of $253.94. The company has a debt-to-equity ratio of 1.53, a quick ratio of 0.73 and a current ratio of 0.92.

Union Pacific (NYSE:UNP - Get Free Report) last announced its quarterly earnings results on Thursday, April 23rd. The railroad operator reported $2.93 EPS for the quarter, beating the consensus estimate of $2.86 by $0.07. The firm had revenue of $6.22 billion for the quarter, compared to analyst estimates of $6.12 billion. Union Pacific had a return on equity of 39.58% and a net margin of 29.20%.The business's revenue for the quarter was up 3.2% on a year-over-year basis. During the same quarter last year, the firm posted $2.70 earnings per share. As a group, research analysts forecast that Union Pacific Corporation will post 12.56 EPS for the current fiscal year.

Union Pacific Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Friday, May 29th were given a $1.38 dividend. This represents a $5.52 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend was Friday, May 29th. Union Pacific's payout ratio is presently 45.47%.

Analysts Set New Price Targets

UNP has been the topic of several recent analyst reports. Raymond James Financial set a $310.00 target price on shares of Union Pacific in a research note on Friday, April 24th. Sanford C. Bernstein lifted their price target on shares of Union Pacific from $289.00 to $293.00 and gave the stock an "outperform" rating in a research note on Tuesday, March 31st. Wells Fargo & Company upped their price target on shares of Union Pacific from $300.00 to $315.00 and gave the company an "overweight" rating in a report on Wednesday. JPMorgan Chase & Co. increased their price objective on shares of Union Pacific from $275.00 to $304.00 and gave the stock a "neutral" rating in a research report on Friday. Finally, BMO Capital Markets reissued a "market perform" rating and issued a $285.00 price objective (up from $278.00) on shares of Union Pacific in a research note on Friday, April 24th. Two research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $290.39.

Union Pacific News Summary

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

• Positive Sentiment: JPMorgan raised its price target on Union Pacific to $304 from $275, implying additional upside from current levels, while keeping a neutral rating. Article: Union Pacific price target raised by JPMorgan Chase & Co.
• Positive Sentiment: Stephens upgraded Union Pacific to strong-buy, signaling confidence in the railroad’s earnings outlook and valuation momentum. Article: Union Pacific was upgraded by Stephens
• Positive Sentiment: Coverage around Union Pacific and Norfolk Southern’s proposed merger continues to advance, with both companies filing responses as the regulatory review moves forward. Investors may see the deal as a potential long-term strategic catalyst if approved. Article: Norfolk Southern (NSC) Files Merger Response With Union Pacific As STB Review Advances
• Neutral Sentiment: Commentary on the proposed rail merger from Union Pacific and Norfolk Southern CEOs highlights the scale of the strategic opportunity, but also underscores that the deal remains subject to significant regulatory scrutiny. Article: EXCLUSIVE: Union Pacific, Norfolk Southern CEOs talk about the rail merger
• Neutral Sentiment: Seeking Alpha published a downgrade saying buying Union Pacific now may be “too late,” which adds a cautionary note but does not appear to outweigh the bullish analyst actions. Article: Union Pacific: Buying Now Feels Too Late (Rating Downgrade)

Insider Buying and Selling

In other Union Pacific news, EVP Eric J. Gehringer sold 2,991 shares of Union Pacific stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $263.96, for a total value of $789,504.36. Following the transaction, the executive vice president owned 43,012 shares in the company, valued at $11,353,447.52. The trade was a 6.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Kenyatta G. Rocker sold 27,387 shares of the business's stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $271.76, for a total transaction of $7,442,691.12. Following the completion of the transaction, the executive vice president owned 61,102 shares of the company's stock, valued at $16,605,079.52. This represents a 30.95% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 32,378 shares of company stock worth $8,781,595 in the last three months. 0.22% of the stock is owned by insiders.

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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