Principal Financial Group Inc. Acquires 29,586 Shares of Union Pacific Corporation $UNP

Key Points

• Principal Financial Group increased its Union Pacific stake by 4.1% in the second quarter, adding 29,586 shares to hold 743,819 shares valued at approximately $202.3 million.
• Union Pacific reported quarterly earnings and revenue above analyst expectations, with EPS of $3.41 and revenue of $6.86 billion, up 11.5% year over year.
• The company raised its quarterly dividend to $1.42 per share, or $5.68 annualized, while analysts maintained a consensus “Moderate Buy” rating with an average price target of $320.89.

Principal Financial Group Inc. boosted its holdings in Union Pacific Corporation (NYSE:UNP - Free Report) by 4.1% during the second quarter, according to the company in its most recent disclosure with the SEC. The firm owned 743,819 shares of the railroad operator's stock after purchasing an additional 29,586 shares during the quarter. Principal Financial Group Inc. owned about 0.13% of Union Pacific worth $202,319,000 at the end of the most recent quarter.

Other large investors have also recently made changes to their positions in the company. Fox Run Management L.L.C. bought a new stake in shares of Union Pacific in the 2nd quarter worth approximately $1,203,000. Nicholas Hoffman & Company LLC. increased its position in Union Pacific by 13.4% during the 2nd quarter. Nicholas Hoffman & Company LLC. now owns 5,951 shares of the railroad operator's stock valued at $1,619,000 after buying an additional 705 shares in the last quarter. Capital City Trust Co. FL raised its stake in Union Pacific by 0.8% during the second quarter. Capital City Trust Co. FL now owns 19,666 shares of the railroad operator's stock valued at $5,349,000 after buying an additional 164 shares during the last quarter. Gateway Wealth Partners LLC raised its stake in Union Pacific by 4.0% during the second quarter. Gateway Wealth Partners LLC now owns 2,659 shares of the railroad operator's stock valued at $723,000 after buying an additional 102 shares during the last quarter. Finally, SmartHarvest Portfolios LLC grew its stake in shares of Union Pacific by 9.2% in the second quarter. SmartHarvest Portfolios LLC now owns 1,723 shares of the railroad operator's stock worth $469,000 after acquiring an additional 145 shares during the last quarter. 80.38% of the stock is currently owned by hedge funds and other institutional investors.

Union Pacific Stock Down 1.4%

UNP stock opened at $293.57 on Friday. The company has a market capitalization of $174.40 billion, a P/E ratio of 23.77, a price-to-earnings-growth ratio of 3.00 and a beta of 0.96. The firm's fifty day simple moving average is $283.00 and its 200-day simple moving average is $265.13. The company has a debt-to-equity ratio of 1.40, a current ratio of 0.99 and a quick ratio of 0.82. Union Pacific Corporation has a 12 month low of $210.84 and a 12 month high of $315.99.

Union Pacific (NYSE:UNP - Get Free Report) last announced its quarterly earnings results on Thursday, July 23rd. The railroad operator reported $3.41 earnings per share for the quarter, beating the consensus estimate of $3.26 by $0.15. Union Pacific had a return on equity of 38.46% and a net margin of 28.85%.The company had revenue of $6.86 billion during the quarter, compared to analysts' expectations of $6.72 billion. During the same period last year, the business earned $3.03 earnings per share. Union Pacific's quarterly revenue was up 11.5% on a year-over-year basis. As a group, equities research analysts forecast that Union Pacific Corporation will post 12.93 earnings per share for the current year.

Union Pacific Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Monday, August 31st will be issued a dividend of $1.42 per share. This represents a $5.68 dividend on an annualized basis and a yield of 1.9%. This is a boost from Union Pacific's previous quarterly dividend of $1.38. The ex-dividend date of this dividend is Monday, August 31st. Union Pacific's payout ratio is currently 44.70%.

Insider Transactions at Union Pacific

In related news, EVP Eric J. Gehringer sold 2,991 shares of the firm's 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 sale, the executive vice president owned 43,012 shares in the company, valued at approximately $11,353,447.52. This trade represents a 6.50% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 0.22% of the company's stock.

Analyst Ratings Changes

A number of research analysts recently weighed in on the stock. JPMorgan Chase & Co. increased their price objective on shares of Union Pacific from $304.00 to $334.00 and gave the company a "neutral" rating in a research report on Friday, July 24th. Royal Bank Of Canada reissued an "outperform" rating and set a $339.00 price target (up from $289.00) on shares of Union Pacific in a research note on Friday, July 24th. Wells Fargo & Company restated an "overweight" rating and set a $335.00 price objective (up from $315.00) on shares of Union Pacific in a research report on Friday, July 24th. Bank of America increased their price objective on shares of Union Pacific from $301.00 to $334.00 and gave the stock a "buy" rating in a research report on Thursday, July 23rd. Finally, Susquehanna lifted their target price on Union Pacific from $305.00 to $333.00 and gave the company a "positive" rating in a research report on Tuesday, July 14th. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and six have issued a Hold rating to the company's stock. According to MarketBeat, Union Pacific has a consensus rating of "Moderate Buy" and a consensus target price of $320.89.

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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