Northwestern Mutual Wealth Management Co. Acquires Shares of 280,437 Union Pacific Corporation $UNP

Key Points

• Northwestern Mutual Wealth Management acquired 280,437 Union Pacific shares in the second quarter, valued at approximately $76.3 million. Institutional investors collectively own 80.38% of the railroad operator.
• Analysts raised their price targets, with a consensus rating of “Moderate Buy” and an average target of $320.89. Targets range from $325 to $349, while Union Pacific recently traded near $307.97.
• Union Pacific exceeded quarterly expectations, reporting $3.41 in earnings per share and $6.86 billion in revenue, with revenue up 11.5% year over year. The company also increased its quarterly dividend to $1.42, equivalent to a 1.8% annual yield.

Northwestern Mutual Wealth Management Co. acquired a new stake in Union Pacific Corporation (NYSE:UNP - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm acquired 280,437 shares of the railroad operator's stock, valued at approximately $76,279,000.

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

Analysts Set New Price Targets

Several research analysts recently commented on the stock. TD Cowen reaffirmed a "buy" rating and issued a $325.00 price target (up from $282.00) on shares of Union Pacific in a research note on Friday, July 24th. JPMorgan Chase & Co. upped their price objective on Union Pacific from $304.00 to $334.00 and gave the stock a "neutral" rating in a research note on Friday, July 24th. Raymond James Financial restated a "strong-buy" rating on shares of Union Pacific in a research note on Monday, July 13th. Citigroup increased their price objective on Union Pacific from $326.00 to $349.00 and gave the company a "buy" rating in a report on Friday, July 24th. Finally, Royal Bank Of Canada reissued an "outperform" rating and issued a $339.00 price objective (up from $289.00) on shares of Union Pacific in a research report on Friday, July 24th. 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.com, Union Pacific presently has a consensus rating of "Moderate Buy" and an average price target of $320.89.

Union Pacific Stock Up 1.3%

NYSE:UNP opened at $307.97 on Friday. The company has a market cap of $182.96 billion, a PE ratio of 24.94, a P/E/G ratio of 3.14 and a beta of 0.96. Union Pacific Corporation has a twelve month low of $210.84 and a twelve month high of $315.99. 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 company's 50 day moving average is $286.30 and its two-hundred day moving average is $267.60.

Union Pacific (NYSE:UNP - Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The railroad operator reported $3.41 EPS for the quarter, topping analysts' consensus estimates of $3.26 by $0.15. The company had revenue of $6.86 billion during the quarter, compared to analysts' expectations of $6.72 billion. Union Pacific had a return on equity of 38.46% and a net margin of 28.85%.The firm's revenue was up 11.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $3.03 EPS. Analysts anticipate that Union Pacific Corporation will post 12.93 EPS for the current year.

Union Pacific Increases Dividend

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

Insider Buying and Selling

In related news, EVP Eric J. Gehringer sold 2,991 shares of the stock in a transaction that occurred 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 owned 43,012 shares in the company, valued at approximately $11,353,447.52. This represents a 6.50% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.22% of the stock is currently owned by corporate insiders.

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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