Hsbc Holdings PLC Reduces Holdings in Union Pacific Corporation $UNP

Key Points

• HSBC Holdings trimmed its Union Pacific stake by 3.3% in the first quarter, selling 38,797 shares and ending with 1,127,236 shares valued at about $273.1 million.
• Union Pacific continues to draw heavy institutional interest, with hedge funds and other institutional investors owning about 80.38% of the stock. Several large holders, including Vanguard and State Street, also increased their positions in recent periods.
• The company’s latest quarterly results were solid, with EPS of $2.93 beating estimates and revenue of $6.22 billion topping expectations. Union Pacific also paid a quarterly dividend of $1.38 per share, and analysts currently view the stock as a Moderate Buy.

Hsbc Holdings PLC lowered its position in Union Pacific Corporation (NYSE:UNP - Free Report) by 3.3% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 1,127,236 shares of the railroad operator's stock after selling 38,797 shares during the quarter. Hsbc Holdings PLC owned about 0.19% of Union Pacific worth $273,123,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in UNP. Vanguard Group Inc. boosted its position in shares of Union Pacific by 1.1% during the fourth 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 during the period. State Street Corp lifted 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 during the last quarter. Capital World Investors boosted its holdings in Union Pacific by 92.1% during the 4th quarter. Capital World Investors now owns 20,136,349 shares of the railroad operator's stock valued at $4,658,142,000 after acquiring an additional 9,655,306 shares during the period. Geode Capital Management LLC boosted its holdings in 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 valued at $3,552,550,000 after acquiring an additional 296,814 shares during the period. Finally, Morgan Stanley grew its position in Union Pacific by 5.0% in the 4th 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 owned by hedge funds and other institutional investors.

Insider Buying and Selling at Union Pacific

In other news, EVP Eric J. Gehringer sold 2,991 shares of Union Pacific stock in a transaction that occurred 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 owned 43,012 shares of the company's stock, valued at $11,353,447.52. The trade was a 6.50% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Jennifer L. Hamann sold 2,000 shares of the business's stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $274.70, for a total transaction of $549,400.00. Following the transaction, the chief financial officer owned 114,642 shares of the company's stock, valued at approximately $31,492,157.40. This trade represents a 1.71% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 32,378 shares of company stock valued at $8,781,595. 0.22% of the stock is currently owned by insiders.

Key Stories Impacting Union Pacific

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

• Positive Sentiment: Union Pacific received the first rail from Rocky Mountain Steel’s new $1.2 billion Pueblo mill, kicking off a seven-year domestic supply contract that could improve rail-input reliability and support efficiency. Article Title
• Positive Sentiment: Several analysts remain constructive, with recent price-target increases and buy/outperform-style ratings helping reinforce expectations for stronger earnings and continued momentum. Article Title
• Positive Sentiment: Heading into Q2 results, earnings estimates have been rising as stronger freight demand may offset volume and supply-chain pressures, which could set up a positive catalyst if Union Pacific beats expectations. Article Title
• Neutral Sentiment: A valuation article said Union Pacific looks fairly valued on cash flow, suggesting the shares may be closer to intrinsic value than deeply discounted, which is less of a near-term trading catalyst. Article Title
• Negative Sentiment: Dan Loeb’s Third Point cut its Union Pacific stake by more than 90% while also slashing other railroad holdings, a move that may pressure sentiment around the sector amid merger uncertainty. Article Title

Union Pacific Stock Up 0.7%

Shares of NYSE UNP opened at $301.44 on Friday. Union Pacific Corporation has a 12-month low of $210.84 and a 12-month high of $303.15. The stock's fifty day simple moving average is $271.93 and its two-hundred day simple moving average is $256.00. The stock has a market capitalization of $178.96 billion, a PE ratio of 24.83, a price-to-earnings-growth ratio of 3.16 and a beta of 0.96. The company has a current ratio of 0.92, a quick ratio of 0.73 and a debt-to-equity ratio of 1.53.

Union Pacific (NYSE:UNP - Get Free Report) last issued its quarterly earnings data on Thursday, April 23rd. The railroad operator reported $2.93 earnings per share for the quarter, topping analysts' consensus estimates of $2.86 by $0.07. Union Pacific had a return on equity of 39.58% and a net margin of 29.20%.The firm had revenue of $6.22 billion during the quarter, compared to analysts' expectations of $6.12 billion. During the same period in the prior year, the business posted $2.70 EPS. The firm's quarterly revenue was up 3.2% on a year-over-year basis. As a group, analysts expect that Union Pacific Corporation will post 12.62 EPS for the current fiscal year.

Union Pacific Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Friday, May 29th were given a dividend of $1.38 per share. This represents a $5.52 annualized dividend 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 presently 45.47%.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on UNP. Stephens upgraded Union Pacific to a "strong-buy" rating in a research report on Wednesday, July 8th. JPMorgan Chase & Co. raised their price target on shares of Union Pacific from $275.00 to $304.00 and gave the stock a "neutral" rating in a research note on Friday, July 10th. Citizens Jmp initiated coverage on shares of Union Pacific in a report on Wednesday. They set an "outperform" rating and a $350.00 price objective for the company. Royal Bank Of Canada reissued an "outperform" rating and issued a $289.00 price objective (up from $273.00) on shares of Union Pacific in a research report on Friday, April 24th. Finally, Susquehanna upped their target price on shares of Union Pacific from $305.00 to $333.00 and gave the stock a "positive" rating in a research note on Tuesday, July 14th. Two analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, Union Pacific presently has an average rating of "Moderate Buy" and a consensus target price of $299.11.

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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