S Bank Fund Management Ltd Makes New Investment in Union Pacific Corporation (NYSE:UNP)

Key Points

• S Bank Fund Management Ltd has acquired 9,849 shares of Union Pacific Corporation, valued at approximately $2.3 million, marking a new investment during the first quarter.
• Union Pacific recently declared a quarterly dividend increase to $1.38, up from $1.34, reflecting a 2.5% yield for investors.
• The stock currently has a consensus rating of Moderate Buy among analysts, with an average target price set at $258.21.

S Bank Fund Management Ltd purchased a new stake in shares of Union Pacific Corporation (NYSE:UNP - Free Report) during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 9,849 shares of the railroad operator's stock, valued at approximately $2,327,000.

Several other large investors have also made changes to their positions in UNP. Capital Research Global Investors increased its holdings in Union Pacific by 14.3% in the fourth quarter. Capital Research Global Investors now owns 10,395,364 shares of the railroad operator's stock valued at $2,370,559,000 after purchasing an additional 1,298,178 shares during the last quarter. Northern Trust Corp increased its holdings in shares of Union Pacific by 15.2% in the fourth quarter. Northern Trust Corp now owns 6,962,650 shares of the railroad operator's stock worth $1,587,763,000 after acquiring an additional 920,414 shares in the last quarter. Price T Rowe Associates Inc. MD increased its holdings in shares of Union Pacific by 1.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 6,594,882 shares of the railroad operator's stock worth $1,503,899,000 after acquiring an additional 105,111 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in shares of 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, Nuveen Asset Management LLC increased its holdings in shares of Union Pacific by 2.1% in the fourth quarter. Nuveen Asset Management LLC now owns 4,372,636 shares of the railroad operator's stock worth $997,136,000 after acquiring an additional 89,199 shares in the last quarter. Institutional investors and hedge funds own 80.38% of the company's stock.

Analysts Set New Price Targets

A number of research analysts recently issued reports on UNP shares. Citigroup downgraded Union Pacific from a "strong-buy" rating to a "hold" rating and decreased their price objective for the stock from $270.00 to $250.00 in a report on Wednesday, July 30th. Stephens decreased their price target on Union Pacific from $275.00 to $255.00 and set an "overweight" rating for the company in a research note on Monday, April 28th. Argus cut Union Pacific from a "buy" rating to a "hold" rating in a research report on Tuesday. 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. Finally, Morgan Stanley cut their price objective on Union Pacific from $220.00 to $215.00 and set an "equal weight" rating for the company in a research report on Monday, July 7th. One research analyst has rated the stock with a sell rating, twelve have given a hold rating, fourteen have given a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $258.21.

Union Pacific Price Performance

Shares of UNP traded down $1.56 during midday trading on Thursday, hitting $221.62. The company's stock had a trading volume of 6,245,623 shares, compared to its average volume of 5,492,426. Union Pacific Corporation has a one year low of $204.66 and a one year high of $258.07. The company's fifty day simple moving average is $227.11 and its two-hundred day simple moving average is $229.77. The company has a quick ratio of 0.53, a current ratio of 0.65 and a debt-to-equity ratio of 1.86. The stock has a market capitalization of $131.43 billion, a price-to-earnings ratio of 19.25, a price-to-earnings-growth ratio of 2.17 and a beta of 1.05.

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

Union Pacific Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Friday, August 29th will be given a dividend of $1.38 per share. The ex-dividend date is Friday, August 29th. This represents a $5.52 dividend on an annualized basis and a yield of 2.5%. This is an increase from Union Pacific's previous quarterly dividend of $1.34. Union Pacific's dividend payout ratio is presently 46.57%.

Union Pacific Company Profile

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.