Magellan Asset Management Ltd Cuts Stock Position in Union Pacific Corporation $UNP

Key Points

• Magellan Asset Management trimmed its Union Pacific stake by 2.4% in the fourth quarter, selling 6,928 shares and leaving it with 286,438 shares valued at about $66.3 million.
• Union Pacific beat quarterly expectations, reporting 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 railroad also announced a $1.38 quarterly dividend, implying a $5.52 annual payout and a 2.1% yield, while analysts currently rate the stock a consensus Moderate Buy with an average target price of $280.47.

Magellan Asset Management Ltd lessened its stake in shares of Union Pacific Corporation (NYSE:UNP - Free Report) by 2.4% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 286,438 shares of the railroad operator's stock after selling 6,928 shares during the quarter. Magellan Asset Management Ltd's holdings in Union Pacific were worth $66,259,000 at the end of the most recent quarter.

Several other large investors have also modified their holdings of the stock. Stephens Consulting LLC raised its stake in shares of Union Pacific by 48.4% during the fourth quarter. Stephens Consulting LLC now owns 135 shares of the railroad operator's stock worth $31,000 after purchasing an additional 44 shares during the last quarter. Macroview Investment Management LLC raised its stake in shares of Union Pacific by 3.4% during the fourth quarter. Macroview Investment Management LLC now owns 1,349 shares of the railroad operator's stock worth $312,000 after purchasing an additional 44 shares during the last quarter. Prestige Wealth Management Group LLC raised its stake in shares of Union Pacific by 1.4% during the third quarter. Prestige Wealth Management Group LLC now owns 3,186 shares of the railroad operator's stock worth $753,000 after purchasing an additional 45 shares during the last quarter. U.S. Capital Wealth Advisors LLC raised its stake in shares of Union Pacific by 0.9% during the fourth quarter. U.S. Capital Wealth Advisors LLC now owns 4,988 shares of the railroad operator's stock worth $1,154,000 after purchasing an additional 45 shares during the last quarter. Finally, Keebeck Wealth Management raised its stake in shares of Union Pacific by 1.7% during the third quarter. Keebeck Wealth Management now owns 2,691 shares of the railroad operator's stock worth $636,000 after purchasing an additional 45 shares during the last quarter. Hedge funds and other institutional investors own 80.38% of the company's stock.

Union Pacific Trading Up 0.5%

NYSE:UNP opened at $263.54 on Friday. The stock has a fifty day moving average price of $258.71 and a two-hundred day moving average price of $246.85. The stock has a market capitalization of $156.47 billion, a price-to-earnings ratio of 21.71, a PEG ratio of 2.78 and a beta of 0.97. 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 Corporation has a 1 year low of $210.84 and a 1 year high of $279.70.

Union Pacific (NYSE:UNP - Get Free Report) last announced its quarterly earnings results on Thursday, April 23rd. The railroad operator reported $2.93 earnings per share for the quarter, beating 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 business had revenue of $6.22 billion during the quarter, compared to analysts' expectations of $6.12 billion. During the same quarter last year, the business posted $2.70 earnings per share. The business's revenue for the quarter was up 3.2% on a year-over-year basis. As a group, sell-side analysts anticipate that Union Pacific Corporation will post 12.53 earnings per share for the current fiscal year.

Union Pacific Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Friday, May 29th will be given a $1.38 dividend. The ex-dividend date is Friday, May 29th. This represents a $5.52 dividend on an annualized basis and a dividend yield of 2.1%. Union Pacific's dividend payout ratio (DPR) is currently 45.47%.

Insider Activity

In related news, EVP Kenyatta G. Rocker sold 27,387 shares of the stock in a transaction on 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 sale, the executive vice president owned 61,102 shares of the company's stock, valued at $16,605,079.52. This trade represents a 30.95% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Jennifer L. Hamann sold 2,000 shares of the stock in a transaction on Friday, April 24th. The shares were sold at an average price of $274.70, for a total value of $549,400.00. Following the sale, the chief financial officer directly owned 114,642 shares in the company, valued at approximately $31,492,157.40. The trade was a 1.71% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 34,377 shares of company stock worth $9,251,221 over the last 90 days. 0.22% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

Several research firms have recently commented on UNP. Benchmark upped their price target on Union Pacific from $275.00 to $300.00 and gave the stock a "buy" rating in a research note on Friday, April 24th. Royal Bank Of Canada restated an "outperform" rating and set a $289.00 price target (up from $273.00) on shares of Union Pacific in a research note on Friday, April 24th. UBS Group reiterated a "neutral" rating and issued a $274.00 price objective (up from $253.00) on shares of Union Pacific in a research report on Friday, April 24th. Raymond James Financial set a $310.00 price objective on Union Pacific in a research report on Friday, April 24th. Finally, BMO Capital Markets reiterated a "market perform" rating and issued a $285.00 price objective (up from $278.00) on shares of Union Pacific in a research report on Friday, April 24th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat.com, Union Pacific presently has a consensus rating of "Moderate Buy" and an average target price of $280.47.

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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