Park Presidio Capital LLC Invests $108.47 Million in Union Pacific Corporation $UNP

Key Points

• Park Presidio Capital initiated a 398,803-share Union Pacific position valued at approximately $108.5 million, making UNP its 10th-largest holding and about 6.1% of its portfolio. Institutional investors collectively own 80.38% of the railroad operator.
• Union Pacific reported stronger-than-expected quarterly results, with EPS of $3.41 and revenue of $6.86 billion, representing 11.5% year-over-year revenue growth. The company also raised its quarterly dividend to $1.42 per share, or $5.68 annually.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and a $320.89 price target; several firms recently raised targets to between $325 and $350.

Park Presidio Capital LLC bought a new stake in Union Pacific Corporation (NYSE:UNP - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm bought 398,803 shares of the railroad operator's stock, valued at approximately $108,474,000. Union Pacific accounts for about 6.1% of Park Presidio Capital LLC's portfolio, making the stock its 10th largest holding. Park Presidio Capital LLC owned about 0.07% of Union Pacific as of its most recent SEC filing.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Kelly Lawrence W & Associates Inc. CA purchased a new stake in Union Pacific during the 2nd quarter worth $34,000. Jones Financial Companies Lllp purchased a new position in Union Pacific in the second quarter valued at about $4,602,000. Sone Capital Management LLC purchased a new position in Union Pacific in the second quarter valued at about $26,061,000. Van Hulzen Asset Management LLC purchased a new position in Union Pacific in the second quarter valued at about $3,554,000. Finally, Peak Asset Management LLC acquired a new position in shares of Union Pacific during the second quarter worth about $3,790,000. Institutional investors and hedge funds own 80.38% of the company's stock.

Insiders Place Their Bets

In other Union Pacific news, EVP Eric J. Gehringer sold 2,991 shares of Union Pacific stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $263.96, for a total transaction of $789,504.36. Following the sale, the executive vice president directly owned 43,012 shares in the company, valued at $11,353,447.52. The trade was a 6.50% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.22% of the stock is currently owned by company insiders.

Union Pacific Stock Performance

NYSE:UNP opened at $309.83 on Tuesday. 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 firm has a 50-day moving average of $287.14 and a two-hundred day moving average of $268.31. The stock has a market cap of $184.06 billion, a P/E ratio of 25.09, a PEG ratio of 3.14 and a beta of 0.96. Union Pacific Corporation has a 1-year low of $210.84 and a 1-year high of $315.99.

Union Pacific (NYSE:UNP - Get Free Report) last announced 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. Union Pacific had a return on equity of 38.46% and a net margin of 28.85%.The business had revenue of $6.86 billion for the quarter, compared to analyst estimates of $6.72 billion. During the same period in the previous year, the company earned $3.03 earnings per share. The company's revenue for the quarter was up 11.5% compared to the same quarter last year. On average, research analysts expect that Union Pacific Corporation will post 12.93 earnings per share for the current fiscal year.

Union Pacific Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Monday, August 31st will be paid a dividend of $1.42 per share. This is a boost from Union Pacific's previous quarterly dividend of $1.38. The ex-dividend date is Monday, August 31st. This represents a $5.68 dividend on an annualized basis and a yield of 1.8%. Union Pacific's payout ratio is 45.99%.

Analyst Upgrades and Downgrades

UNP has been the subject of several analyst reports. Citigroup upped their target price on Union Pacific from $326.00 to $349.00 and gave the stock a "buy" rating in a research report on Friday, July 24th. Barclays reiterated an "overweight" rating and set a $350.00 target price (up from $315.00) on shares of Union Pacific in a report on Friday, July 24th. Evercore restated an "outperform" rating and issued a $294.00 price target on shares of Union Pacific in a report on Thursday, June 25th. BMO Capital Markets reaffirmed a "market perform" rating and issued a $320.00 price objective (up from $285.00) on shares of Union Pacific in a research report on Friday, July 24th. Finally, TD Cowen reaffirmed a "buy" rating and issued a $325.00 price objective (up from $282.00) 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. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $320.89.

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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