SEB Asset Management AB Makes New Investment in Union Pacific Corporation $UNP

Key Points

• SEB Asset Management AB initiated a new position in Union Pacific, buying 281,977 shares worth about $68.4 million in the first quarter.
• Union Pacific recently beat quarterly expectations, reporting $2.93 EPS on $6.22 billion in revenue, both above analyst estimates, and revenue rose 3.2% year over year.
• Analyst sentiment remains constructive, with several firms raising price targets; the stock currently has a Moderate Buy consensus and an average target price of $299.11.

SEB Asset Management AB purchased a new stake in shares of Union Pacific Corporation (NYSE:UNP - Free Report) in the first quarter, according to its most recent filing with the Securities & Exchange Commission. The firm purchased 281,977 shares of the railroad operator's stock, valued at approximately $68,413,000.

A number of other institutional investors and hedge funds have also made changes to their positions in UNP. Key Financial Inc boosted its position in shares of Union Pacific by 2.1% during the 1st quarter. Key Financial Inc now owns 1,821 shares of the railroad operator's stock worth $442,000 after purchasing an additional 38 shares during the period. Members Trust Co raised its position in Union Pacific by 2.5% in the first quarter. Members Trust Co now owns 1,573 shares of the railroad operator's stock valued at $382,000 after purchasing an additional 38 shares during the period. EJMK Ventures LLC raised its position in Union Pacific by 4.0% in the first quarter. EJMK Ventures LLC now owns 1,016 shares of the railroad operator's stock valued at $247,000 after purchasing an additional 39 shares during the period. Rehmann Capital Advisory Group lifted its stake in Union Pacific by 0.6% during the fourth quarter. Rehmann Capital Advisory Group now owns 6,637 shares of the railroad operator's stock worth $1,535,000 after purchasing an additional 42 shares in the last quarter. Finally, Fairvoy Private Wealth LLC lifted its stake in Union Pacific by 3.8% during the first quarter. Fairvoy Private Wealth LLC now owns 1,156 shares of the railroad operator's stock worth $280,000 after purchasing an additional 42 shares in the last quarter. 80.38% of the stock is owned by hedge funds and other institutional investors.

Union Pacific Stock Up 0.7%

Shares of NYSE:UNP opened at $301.44 on Friday. The firm's 50 day moving average price is $271.93 and its 200 day moving average price is $256.00. The stock has a market cap of $178.96 billion, a price-to-earnings ratio of 24.83, a price-to-earnings-growth ratio of 3.16 and a beta of 0.96. Union Pacific Corporation has a fifty-two week low of $210.84 and a fifty-two week high of $303.15. The company has a quick ratio of 0.73, a current ratio of 0.92 and a debt-to-equity ratio of 1.53.

Union Pacific (NYSE:UNP - Get Free Report) last posted its quarterly earnings results on Thursday, April 23rd. The railroad operator reported $2.93 EPS for the quarter, topping the consensus estimate of $2.86 by $0.07. Union Pacific had a net margin of 29.20% and a return on equity of 39.58%. The company had revenue of $6.22 billion during the quarter, compared to analysts' expectations of $6.12 billion. During the same quarter in the previous year, the business posted $2.70 EPS. The firm's revenue was up 3.2% on a year-over-year basis. As a group, equities research analysts predict that Union Pacific Corporation will post 12.62 earnings per share for the current fiscal year.

Union Pacific Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Friday, May 29th were given a dividend of $1.38 per share. This represents a $5.52 annualized dividend and a dividend yield of 1.8%. The ex-dividend date of this dividend was Friday, May 29th. Union Pacific's dividend payout ratio is currently 45.47%.

Key Headlines Impacting Union Pacific

Here are the key news stories impacting Union Pacific this week:

• Positive Sentiment: Union Pacific received the first rail from Rocky Mountain Steel’s new $1.2 billion Pueblo mill, kicking off a seven-year domestic supply contract that could improve rail-input reliability and support efficiency. Article Title
• Positive Sentiment: Several analysts remain constructive, with recent price-target increases and buy/outperform-style ratings helping reinforce expectations for stronger earnings and continued momentum. Article Title
• Positive Sentiment: Heading into Q2 results, earnings estimates have been rising as stronger freight demand may offset volume and supply-chain pressures, which could set up a positive catalyst if Union Pacific beats expectations. Article Title
• Neutral Sentiment: A valuation article said Union Pacific looks fairly valued on cash flow, suggesting the shares may be closer to intrinsic value than deeply discounted, which is less of a near-term trading catalyst. Article Title
• Negative Sentiment: Dan Loeb’s Third Point cut its Union Pacific stake by more than 90% while also slashing other railroad holdings, a move that may pressure sentiment around the sector amid merger uncertainty. Article Title

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on UNP shares. Wells Fargo & Company lifted their price objective on Union Pacific from $300.00 to $315.00 and gave the company an "overweight" rating in a research note on Wednesday, July 8th. Sanford C. Bernstein increased their target price on Union Pacific from $289.00 to $293.00 and gave the stock an "outperform" rating in a research note on Tuesday, March 31st. Benchmark reissued a "buy" rating and set a $325.00 target price (up from $300.00) on shares of Union Pacific in a research note on Wednesday. JPMorgan Chase & Co. raised their target price on Union Pacific from $275.00 to $304.00 and gave the company a "neutral" rating in a report on Friday, July 10th. Finally, UBS Group reaffirmed a "neutral" rating and issued a $274.00 target price (up from $253.00) on shares of Union Pacific in a research report on Friday, April 24th. Two analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, Union Pacific presently has a consensus rating of "Moderate Buy" and an average price target of $299.11.

Insider Transactions at Union Pacific

In related news, EVP Kenyatta G. Rocker sold 27,387 shares of the business's stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $271.76, for a total transaction of $7,442,691.12. Following the completion of the sale, the executive vice president owned 61,102 shares in the company, valued at $16,605,079.52. The trade was a 30.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Jennifer L. Hamann sold 2,000 shares of the company's stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $274.70, for a total value of $549,400.00. Following the completion of the transaction, the chief financial officer directly owned 114,642 shares of the company's stock, valued at $31,492,157.40. This trade represents a 1.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 32,378 shares of company stock valued at $8,781,595. 0.22% of the stock is currently 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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