Jennison Associates LLC Increases Stake in Union Pacific Corporation $UNP

Key Points

• Jennison Associates increased its Union Pacific stake by 16.6% in the second quarter, adding 115,192 shares to own 808,441 shares worth approximately $219.9 million. Institutional investors collectively hold 80.38% of the company.
• Union Pacific exceeded quarterly expectations, reporting $3.41 EPS and $6.86 billion in revenue, with revenue up 11.5% year over year. The company also raised its quarterly dividend to $1.42, implying a 1.9% yield.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and a $320.89 price target; recent targets range from $310 to $350. Shares opened at $293.57 and have traded between $210.84 and $315.99 over the past year.

Jennison Associates LLC raised its holdings in shares of Union Pacific Corporation (NYSE:UNP - Free Report) by 16.6% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 808,441 shares of the railroad operator's stock after purchasing an additional 115,192 shares during the quarter. Jennison Associates LLC owned approximately 0.14% of Union Pacific worth $219,896,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Rachor Investment Advisory Services LLC purchased a new position in shares of Union Pacific in the fourth quarter worth about $25,000. Tucker Asset Management LLC purchased a new stake in shares of Union Pacific during the 4th quarter valued at approximately $25,000. SWAN Capital LLC boosted its holdings in Union Pacific by 2,575.0% in the 4th quarter. SWAN Capital LLC now owns 107 shares of the railroad operator's stock worth $25,000 after buying an additional 103 shares during the period. High Point Wealth Management LLC bought a new position in Union Pacific in the 4th quarter worth approximately $26,000. Finally, Cornerstone Financial Management LLC bought a new position in Union Pacific in the 4th quarter worth approximately $27,000. Institutional investors own 80.38% of the company's stock.

Insider Buying and Selling at Union Pacific

In related news, EVP Eric J. Gehringer sold 2,991 shares of the stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $263.96, for a total value of $789,504.36. Following the sale, the executive vice president owned 43,012 shares in the company, valued at approximately $11,353,447.52. This trade represents a 6.50% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 0.22% of the company's stock.

Union Pacific Price Performance

Shares of NYSE:UNP opened at $293.57 on Friday. The company has a 50 day moving average of $283.00 and a 200 day moving average of $265.13. The company has a current ratio of 0.99, a quick ratio of 0.82 and a debt-to-equity ratio of 1.40. The stock has a market cap of $174.40 billion, a P/E ratio of 23.77, a P/E/G ratio of 3.04 and a beta of 0.96. Union Pacific Corporation has a 12 month low of $210.84 and a 12 month high of $315.99.

Union Pacific (NYSE:UNP - Get Free Report) last posted its earnings results on Thursday, July 23rd. The railroad operator reported $3.41 earnings per share (EPS) 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 business had revenue of $6.86 billion for the quarter, compared to analysts' expectations of $6.72 billion. During the same period in the prior year, the company posted $3.03 EPS. The business's revenue for the quarter was up 11.5% compared to the same quarter last year. As a group, sell-side analysts forecast that Union Pacific Corporation will post 12.93 EPS for the current fiscal year.

Union Pacific Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, August 31st will be issued a $1.42 dividend. The ex-dividend date of this dividend is Monday, August 31st. This is an increase from Union Pacific's previous quarterly dividend of $1.38. This represents a $5.68 annualized dividend and a dividend yield of 1.9%. Union Pacific's payout ratio is currently 44.70%.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on UNP. UBS Group reissued a "neutral" rating and set a $310.00 target price (up from $286.00) on shares of Union Pacific in a report on Friday, July 24th. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $339.00 price target (up from $289.00) on shares of Union Pacific in a report on Friday, July 24th. Bank of America raised their price target on Union Pacific from $301.00 to $334.00 and gave the stock a "buy" rating in a report on Thursday, July 23rd. Barclays reiterated an "overweight" rating and issued a $350.00 price target (up from $315.00) on shares of Union Pacific in a research report on Friday, July 24th. Finally, Benchmark increased their price objective on Union Pacific from $325.00 to $335.00 and gave the stock a "buy" rating in a report on Friday, July 24th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $320.89.

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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