RNC Capital Management LLC Cuts Stock Position in Union Pacific Corporation $UNP

Key Points

• RNC Capital Management LLC has significantly reduced its stake in Union Pacific Corporation by 80.2%, now owning 1,066 shares valued at approximately $252,000.
• Union Pacific's stock price recently dipped 1.3%, opening at $217.41, with a market cap of $128.93 billion and a price-to-earnings ratio of 18.89.
• The company announced an increase in its quarterly dividend to $1.38, resulting in a yield of 2.5% for shareholders, up from the previous dividend of $1.34.

RNC Capital Management LLC lessened its stake in shares of Union Pacific Corporation (NYSE:UNP - Free Report) by 80.2% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,066 shares of the railroad operator's stock after selling 4,326 shares during the quarter. RNC Capital Management LLC's holdings in Union Pacific were worth $252,000 at the end of the most recent quarter.

Several other large investors have also modified their holdings of the stock. Northern Trust Corp raised its stake in shares of Union Pacific by 2.0% during the first quarter. Northern Trust Corp now owns 7,105,382 shares of the railroad operator's stock worth $1,678,575,000 after purchasing an additional 142,732 shares during the last quarter. Price T Rowe Associates Inc. MD raised its position in Union Pacific by 5.4% in the first quarter. Price T Rowe Associates Inc. MD now owns 6,949,345 shares of the railroad operator's stock worth $1,641,715,000 after acquiring an additional 354,463 shares in the last quarter. Royal Bank of Canada raised its position in Union Pacific by 1.7% in the first quarter. Royal Bank of Canada now owns 5,105,784 shares of the railroad operator's stock worth $1,206,191,000 after acquiring an additional 86,292 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in Union Pacific by 35.2% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,968,658 shares of the railroad operator's stock worth $1,133,053,000 after acquiring an additional 1,294,643 shares in the last quarter. Finally, Canada Pension Plan Investment Board raised its position in Union Pacific by 10.8% in the first quarter. Canada Pension Plan Investment Board now owns 4,626,200 shares of the railroad operator's stock worth $1,092,893,000 after acquiring an additional 452,788 shares in the last quarter. Hedge funds and other institutional investors own 80.38% of the company's stock.

Union Pacific Stock Down 1.3%

Union Pacific stock opened at $217.41 on Tuesday. The company has a debt-to-equity ratio of 1.86, a quick ratio of 0.53 and a current ratio of 0.65. The firm has a market capitalization of $128.93 billion, a price-to-earnings ratio of 18.89, a price-to-earnings-growth ratio of 2.14 and a beta of 1.03. Union Pacific Corporation has a fifty-two week low of $204.66 and a fifty-two week high of $256.84. The stock's fifty day moving average is $226.14 and its two-hundred day moving average is $226.61.

Union Pacific (NYSE:UNP - Get Free Report) last posted its earnings results on Thursday, July 24th. The railroad operator reported $3.03 earnings per share for the quarter, beating the consensus estimate of $2.84 by $0.19. The company had revenue of $6.15 billion for the quarter, compared to analyst estimates of $6.09 billion. Union Pacific had a return on equity of 41.73% and a net margin of 28.43%.Union Pacific's revenue was up 2.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $2.74 earnings per share. Analysts predict that Union Pacific Corporation will post 11.99 EPS for the current fiscal year.

Union Pacific Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Friday, August 29th will be issued a $1.38 dividend. This represents a $5.52 annualized dividend and a yield of 2.5%. This is a positive change from Union Pacific's previous quarterly dividend of $1.34. The ex-dividend date of this dividend is Friday, August 29th. Union Pacific's dividend payout ratio is currently 47.96%.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the company. Argus cut Union Pacific from a "buy" rating to a "hold" rating in a research report on Tuesday, August 12th. Jefferies Financial Group upgraded Union Pacific from a "hold" rating to a "buy" rating and increased their price objective for the stock from $250.00 to $285.00 in a research report on Friday, July 25th. Susquehanna cut their price objective on Union Pacific from $260.00 to $257.00 and set a "positive" rating for the company in a research report on Wednesday, July 30th. Raymond James Financial reiterated a "strong-buy" rating on shares of Union Pacific in a research report on Tuesday, July 15th. Finally, BMO Capital Markets increased their price objective on Union Pacific from $270.00 to $277.00 and gave the stock an "outperform" rating in a research report on Friday, July 25th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $258.21.

About Union Pacific

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. The company offers transportation services for grain and grain products, fertilizers, food and refrigerated products, and coal and renewables to grain processors, animal feeders, ethanol producers, renewable biofuel producers, and other agricultural users; and construction products, industrial chemicals, plastics, forest products, specialized products, metals and ores, petroleum, liquid petroleum gases, soda ash, and sand, as well as finished automobiles, automotive parts, and merchandise in intermodal containers.

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