Norges Bank Purchases Shares of 7,694,566 Union Pacific Corporation $UNP

Key Points

• Norges Bank disclosed a new fourth-quarter stake in Union Pacific, buying 7.69 million shares worth about $1.78 billion and giving it roughly 1.3% ownership of the railroad.
• Institutional interest in UNP remains strong, with hedge funds and other large investors owning 80.38% of the company. Several firms, including Capital World Investors and Capital Research Global Investors, also significantly increased their positions.
• Union Pacific’s proposed merger with Norfolk Southern is still in play after the STB accepted the revised application, but regulatory scrutiny remains high and could delay or complicate approval.

Norges Bank acquired a new stake in shares of Union Pacific Corporation (NYSE:UNP - Free Report) during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The firm acquired 7,694,566 shares of the railroad operator's stock, valued at approximately $1,779,907,000. Norges Bank owned approximately 1.30% of Union Pacific as of its most recent filing with the SEC.

Several other institutional investors and hedge funds have also recently made changes to their positions in UNP. Capital World Investors raised its position in shares of Union Pacific by 193.3% during the 3rd quarter. Capital World Investors now owns 10,481,043 shares of the railroad operator's stock valued at $2,477,404,000 after buying an additional 6,908,016 shares in the last quarter. Capital Research Global Investors raised its position in shares of Union Pacific by 95.0% during the 3rd quarter. Capital Research Global Investors now owns 8,713,196 shares of the railroad operator's stock valued at $2,059,538,000 after buying an additional 4,244,226 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Union Pacific by 72.7% during the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,177,002 shares of the railroad operator's stock valued at $2,169,168,000 after buying an additional 3,861,636 shares in the last quarter. EdgePoint Investment Group Inc. purchased a new stake in shares of Union Pacific during the 3rd quarter valued at $408,592,000. Finally, Baupost Group LLC MA purchased a new stake in shares of Union Pacific during the 3rd quarter valued at $353,658,000. Hedge funds and other institutional investors own 80.38% of the company's stock.

Key Headlines Impacting Union Pacific

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

Insider Buying and Selling at Union Pacific

In other Union Pacific news, EVP Eric J. Gehringer sold 1,999 shares of the business's stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $234.93, for a total value of $469,625.07. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, EVP Kenyatta G. Rocker sold 27,387 shares of the business's stock in a transaction dated Friday, April 24th. The shares were sold at an average price of $271.76, for a total transaction of $7,442,691.12. Following the completion of the transaction, the executive vice president owned 61,102 shares in the company, valued at $16,605,079.52. The trade was a 30.95% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 31,386 shares of company stock worth $8,461,716. 0.22% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

Several analysts have recently weighed in on UNP shares. Wells Fargo & Company restated an "overweight" rating and set a $300.00 price objective (up from $260.00) on shares of Union Pacific 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 research report on Friday, March 6th. TD Cowen increased their target price on shares of Union Pacific from $256.00 to $282.00 and gave the company a "buy" rating in a report on Friday, April 24th. Weiss Ratings upgraded shares of Union Pacific from a "buy (b-)" rating to a "buy (b)" rating in a research report on Tuesday, April 21st. Finally, JPMorgan Chase & Co. lifted their target price on shares of Union Pacific from $267.00 to $275.00 and gave the stock a "neutral" rating in a research report on Friday, April 24th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $280.47.

Union Pacific Price Performance

Shares of NYSE:UNP opened at $262.83 on Friday. The stock has a market cap of $156.04 billion, a PE ratio of 21.65, a PEG ratio of 2.83 and a beta of 0.99. The company's fifty day moving average is $256.57 and its 200 day moving average is $245.56. 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.

Union Pacific (NYSE:UNP - Get Free Report) last issued its earnings results on Thursday, April 23rd. The railroad operator reported $2.93 EPS for the quarter, topping analysts' consensus estimates of $2.86 by $0.07. The company had revenue of $6.22 billion for the quarter, compared to analysts' expectations of $6.12 billion. Union Pacific had a net margin of 29.20% and a return on equity of 39.58%. The firm's revenue was up 3.2% compared to the same quarter last year. During the same quarter last year, the company earned $2.70 EPS. Research analysts anticipate that Union Pacific Corporation will post 12.53 earnings per share for the current year.

Union Pacific Announces Dividend

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

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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