MUFG Securities EMEA plc Raises Stake in Union Pacific Corporation $UNP

Key Points

• MUFG Securities EMEA plc more than doubled its Union Pacific stake in the fourth quarter, increasing holdings by 114.3% to 24,320 shares worth about $5.63 million.
• Institutional interest remains high, with several other funds also buying shares and institutions now owning 80.38% of Union Pacific stock.
• Union Pacific recently reported better-than-expected earnings and also declared a quarterly dividend of $1.38 per share, while the company’s proposed merger with Norfolk Southern is facing ongoing regulatory scrutiny.

MUFG Securities EMEA plc boosted its stake in shares of Union Pacific Corporation (NYSE:UNP - Free Report) by 114.3% in the 4th quarter, according to the company in its most recent disclosure with the SEC. The firm owned 24,320 shares of the railroad operator's stock after buying an additional 12,969 shares during the quarter. MUFG Securities EMEA plc's holdings in Union Pacific were worth $5,626,000 as of its most recent SEC filing.

Several other institutional investors also recently added to or reduced their stakes in the stock. Impact Partnership Wealth LLC bought a new position in Union Pacific during the fourth quarter valued at about $343,000. Norges Bank bought a new position in Union Pacific during the fourth quarter valued at about $1,779,907,000. Eurizon SLJ Capital Ltd bought a new position in Union Pacific during the fourth quarter valued at about $440,000. Eurizon Capital SGR S.p.A. bought a new position in Union Pacific during the fourth quarter valued at about $31,917,000. Finally, Fideuram Asset Management Ireland dac bought a new position in Union Pacific during the fourth quarter valued at about $3,908,000. Institutional investors own 80.38% of the company's stock.

Key Union Pacific News

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

• Positive Sentiment: The STB did accept Union Pacific’s revised merger application, which keeps the transaction alive and moves it one step forward in the regulatory process. Article Title
• Neutral Sentiment: Brookfield Infrastructure may benefit from divestitures if the merger eventually proceeds, since regulators are expected to require sales of regional lines, yards, or equipment. Article Title
• Neutral Sentiment: Union Pacific and Norfolk Southern said they will work with regulators and continue pushing the case for creating the first transcontinental railroad. Article Title
• Negative Sentiment: The STB’s pause signals more regulatory friction, extending the approval timeline and increasing uncertainty around whether the merger will close on the company’s preferred schedule. Article Title
• Negative Sentiment: CN publicly backed the regulator’s decision to freeze the review, arguing Union Pacific and Norfolk Southern still haven’t met the higher standard needed to justify the deal. Article Title

Union Pacific Price Performance

NYSE UNP opened at $262.83 on Monday. The company has a market cap of $156.04 billion, a PE ratio of 21.65, a price-to-earnings-growth ratio of 2.79 and a beta of 0.97. Union Pacific Corporation has a 52 week low of $210.84 and a 52 week high of $279.70. The company has a quick ratio of 0.73, a current ratio of 0.92 and a debt-to-equity ratio of 1.53. The firm's 50-day simple moving average is $256.57 and its two-hundred day simple moving average is $245.71.

Union Pacific (NYSE:UNP - Get Free Report) last released its quarterly earnings data 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 business had revenue of $6.22 billion for the quarter, compared to the consensus estimate of $6.12 billion. Union Pacific had a net margin of 29.20% and a return on equity of 39.58%. The company's revenue was up 3.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.70 earnings per share. Research analysts predict that Union Pacific Corporation will post 12.53 earnings per share for the current year.

Union Pacific Dividend Announcement

The business 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 dividend of $1.38 per share. The ex-dividend date is Friday, May 29th. This represents a $5.52 annualized dividend and a dividend yield of 2.1%. Union Pacific's dividend payout ratio is currently 45.47%.

Insider Activity

In other news, EVP Kenyatta G. Rocker sold 27,387 shares of the firm's stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $271.76, for a total value of $7,442,691.12. Following the completion of the transaction, the executive vice president directly owned 61,102 shares in the company, valued at approximately $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 can be accessed through the SEC website. Also, EVP Eric J. Gehringer sold 1,999 shares of the firm's stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $234.93, for a total transaction of $469,625.07. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 31,386 shares of company stock worth $8,461,716 over the last ninety days. Company insiders own 0.22% of the company's stock.

Wall Street Analyst Weigh In

Several research firms recently weighed in on UNP. Sanford C. Bernstein increased their price target on shares of Union Pacific from $289.00 to $293.00 and gave the company an "outperform" rating in a research report on Tuesday, March 31st. JPMorgan Chase & Co. increased their price target on shares of Union Pacific from $267.00 to $275.00 and gave the company a "neutral" rating in a research report on Friday, April 24th. Robert W. Baird set a $311.00 price objective on shares of Union Pacific and gave the company an "outperform" rating in a report on Friday, March 6th. Evercore reaffirmed an "outperform" rating and set a $277.00 price objective on shares of Union Pacific in a report on Friday, April 24th. Finally, Benchmark upped their price objective on shares of Union Pacific from $275.00 to $300.00 and gave the company a "buy" rating in a report on Friday, April 24th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target 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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