Palestra Capital Management LLC Boosts Holdings in Union Pacific Corporation $UNP

Key Points

• Palestra Capital Management increased its Union Pacific stake by 5.3% in the second quarter, adding 38,563 shares to own 762,465 shares valued at approximately $207.4 million. Institutional investors collectively own 80.38% of the company.
• Analysts maintain a “Moderate Buy” consensus on Union Pacific, with an average price target of $320.89; several firms recently raised their targets to as high as $349.
• Union Pacific exceeded quarterly earnings and revenue expectations, reporting $3.41 EPS and $6.86 billion in revenue, while raising its quarterly dividend to $1.42 per share, an annualized yield of about 1.8%.

Palestra Capital Management LLC boosted its position in shares of Union Pacific Corporation (NYSE:UNP - Free Report) by 5.3% during the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 762,465 shares of the railroad operator's stock after acquiring an additional 38,563 shares during the period. Union Pacific makes up approximately 7.0% of Palestra Capital Management LLC's holdings, making the stock its 5th largest holding. Palestra Capital Management LLC owned approximately 0.13% of Union Pacific worth $207,390,000 at the end of the most recent reporting period.

Several other large investors have also recently added to or reduced their stakes in the company. Cambient Family Office LLC acquired a new stake in shares of Union Pacific during the fourth quarter worth $1,319,000. First National Bank of Omaha lifted its stake in Union Pacific by 35.8% in the fourth quarter. First National Bank of Omaha now owns 54,635 shares of the railroad operator's stock valued at $12,665,000 after buying an additional 14,399 shares during the period. North Dakota State Investment Board acquired a new position in Union Pacific in the fourth quarter valued at about $4,746,000. Sage Investment Advisers LLC bought a new position in Union Pacific during the fourth quarter worth about $997,000. Finally, Truist Financial Corp boosted its holdings in Union Pacific by 3.1% during the fourth quarter. Truist Financial Corp now owns 1,016,071 shares of the railroad operator's stock worth $235,038,000 after buying an additional 30,079 shares during the last quarter. Institutional investors and hedge funds own 80.38% of the company's stock.

Wall Street Analyst Weigh In

UNP has been the subject of several analyst reports. Benchmark boosted their target price on Union Pacific from $325.00 to $335.00 and gave the stock a "buy" rating in a research report on Friday, July 24th. Citigroup lifted their price objective on shares of Union Pacific from $326.00 to $349.00 and gave the stock a "buy" rating in a research note on Friday, July 24th. JPMorgan Chase & Co. boosted their price objective on shares of Union Pacific from $304.00 to $334.00 and gave the company a "neutral" rating in a report on Friday, July 24th. TD Cowen reaffirmed a "buy" rating and issued a $325.00 target price (up from $282.00) on shares of Union Pacific in a research note on Friday, July 24th. Finally, The Goldman Sachs Group set a $317.00 price target on shares of Union Pacific and gave the stock a "neutral" rating in a research report on Thursday, July 23rd. Two research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Union Pacific presently has a consensus rating of "Moderate Buy" and a consensus target price of $320.89.

Union Pacific Trading Up 0.5%

NYSE:UNP opened at $311.21 on Thursday. The company has a debt-to-equity ratio of 1.40, a current ratio of 0.99 and a quick ratio of 0.82. The business's 50-day simple moving average is $289.07 and its 200-day simple moving average is $269.15. Union Pacific Corporation has a fifty-two week low of $210.84 and a fifty-two week high of $315.99. The stock has a market capitalization of $184.88 billion, a PE ratio of 25.20, a price-to-earnings-growth ratio of 3.16 and a beta of 0.96.

Union Pacific (NYSE:UNP - Get Free Report) last posted its earnings results 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. The business 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%.Union Pacific's revenue for the quarter was up 11.5% compared to the same quarter last year. During the same period in the prior year, the business earned $3.03 EPS. Sell-side analysts expect that Union Pacific Corporation will post 12.93 earnings per share for the current fiscal year.

Union Pacific Increases Dividend

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

Insider Activity

In other news, EVP Eric J. Gehringer sold 2,991 shares of the stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $263.96, for a total transaction of $789,504.36. Following the completion of the sale, the executive vice president owned 43,012 shares of the company's stock, valued at $11,353,447.52. This represents a 6.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.22% of the stock is owned by corporate 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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