Korea Investment CORP Invests $68.45 Million in Union Pacific Corporation $UNP

Key Points

• Korea Investment Corp. acquired 251,650 Union Pacific shares worth approximately $68.45 million in the second quarter, while institutional investors collectively own 80.38% of the stock.
• Union Pacific exceeded quarterly earnings expectations, reporting $3.41 in EPS and $6.86 billion in revenue; revenue rose 11.5% year over year.
• The company raised its quarterly dividend from $1.38 to $1.42 per share, equivalent to a $5.68 annualized payout and a 1.8% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $320.89.

Korea Investment CORP bought a new stake in shares of Union Pacific Corporation (NYSE:UNP - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 251,650 shares of the railroad operator's stock, valued at approximately $68,449,000.

Other hedge funds have also recently made changes to their positions in the company. Rachor Investment Advisory Services LLC purchased a new position in Union Pacific in the 4th quarter worth about $25,000. Tucker Asset Management LLC purchased a new stake in Union Pacific in the 4th quarter valued at about $25,000. SWAN Capital LLC boosted its position in Union Pacific by 2,575.0% in the 4th quarter. SWAN Capital LLC now owns 107 shares of the railroad operator's stock valued at $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 about $26,000. Finally, Cornerstone Financial Management LLC bought a new position in Union Pacific in the 4th quarter worth about $27,000. 80.38% of the stock is currently owned by institutional investors.

Union Pacific Stock Performance

UNP stock opened at $307.97 on Friday. Union Pacific Corporation has a one year low of $210.84 and a one year high of $315.99. The firm has a market cap of $182.96 billion, a price-to-earnings ratio of 24.94, a PEG ratio of 3.10 and a beta of 0.96. The company has a debt-to-equity ratio of 1.40, a quick ratio of 0.82 and a current ratio of 0.99. The firm has a 50-day simple moving average of $286.30 and a two-hundred day simple moving average of $267.60.

Union Pacific (NYSE:UNP - Get Free Report) last issued its quarterly earnings data on Thursday, July 23rd. The railroad operator reported $3.41 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.26 by $0.15. Union Pacific had a net margin of 28.85% and a return on equity of 38.46%. The firm 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. The company's quarterly revenue was up 11.5% compared to the same quarter last year. On average, equities analysts forecast that Union Pacific Corporation will post 12.93 EPS for the current fiscal year.

Union Pacific Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Monday, August 31st will be paid a $1.42 dividend. This represents a $5.68 annualized dividend and a yield of 1.8%. This is a positive change from Union Pacific's previous quarterly dividend of $1.38. The ex-dividend date is Monday, August 31st. Union Pacific's payout ratio is 44.70%.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on UNP shares. Wells Fargo & Company reaffirmed an "overweight" rating and set a $335.00 price target (up from $315.00) on shares of Union Pacific in a research note on Friday, July 24th. UBS Group reissued a "neutral" rating and issued a $310.00 price objective (up from $286.00) on shares of Union Pacific in a research note on Friday, July 24th. Barclays reissued an "overweight" rating and issued a $350.00 price objective (up from $315.00) on shares of Union Pacific in a research note on Friday, July 24th. Robert W. Baird lifted their target price on Union Pacific from $311.00 to $344.00 and gave the company an "outperform" rating in a research report on Monday, July 27th. Finally, Evercore reaffirmed an "outperform" rating and set a $294.00 target price on shares of Union Pacific in a research report on Thursday, June 25th. Two analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $320.89.

Insiders Place Their Bets

In other Union Pacific news, EVP Eric J. Gehringer sold 2,991 shares of Union Pacific stock in a transaction 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 directly owned 43,012 shares of the company's stock, valued at approximately $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 can be accessed through the SEC website. 0.22% of the stock is currently owned by company 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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