Trust Co. of Vermont Makes New $20.40 Million Investment in Union Pacific Corporation $UNP

Key Points

• Trust Co. of Vermont bought 75,008 Union Pacific shares worth approximately $20.4 million in the second quarter. Institutional investors collectively own 80.38% of the railroad operator.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $320.89; several firms recently raised their targets to between $335 and $350.
• Union Pacific exceeded quarterly expectations, reporting $3.41 in EPS and $6.86 billion in revenue, while revenue increased 11.5% year over year. The company also raised its quarterly dividend to $1.42 per share, equivalent to a 1.9% annual yield.

Trust Co. of Vermont purchased a new position in shares of 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 institutional investor purchased 75,008 shares of the railroad operator's stock, valued at approximately $20,402,000.

Other institutional investors have also recently made changes to their positions in the company. Rachor Investment Advisory Services LLC bought a new stake in shares of Union Pacific in the fourth quarter valued at about $25,000. Tucker Asset Management LLC bought a new position in Union Pacific during the 4th quarter worth about $25,000. SWAN Capital LLC increased its position in Union Pacific by 2,575.0% during the 4th quarter. SWAN Capital LLC now owns 107 shares of the railroad operator's stock valued at $25,000 after purchasing an additional 103 shares during the period. High Point Wealth Management LLC purchased a new position in Union Pacific during the 4th quarter valued at about $26,000. Finally, Cornerstone Financial Management LLC purchased a new stake in shares of Union Pacific in the 4th quarter worth approximately $27,000. Hedge funds and other institutional investors own 80.38% of the company's stock.

Insiders Place Their Bets

In related news, EVP Eric J. Gehringer sold 2,991 shares of the company's stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $263.96, for a total transaction of $789,504.36. Following the transaction, the executive vice president directly owned 43,012 shares of the company's stock, valued at $11,353,447.52. This represents a 6.50% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 0.22% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on UNP shares. Benchmark increased their price objective on shares of Union Pacific from $325.00 to $335.00 and gave the company a "buy" rating in a research note on Friday, July 24th. Wells Fargo & Company reissued an "overweight" rating and issued a $335.00 price objective (up from $315.00) on shares of Union Pacific in a research note on Friday, July 24th. Barclays restated 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. Raymond James Financial reiterated a "strong-buy" rating on shares of Union Pacific in a report on Monday, July 13th. Finally, Royal Bank Of Canada reissued an "outperform" rating and issued a $339.00 price target (up from $289.00) 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 given a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $320.89.

Union Pacific Price Performance

Shares of UNP opened at $299.10 on Wednesday. The company has a 50 day moving average of $284.18 and a two-hundred day moving average of $266.34. The company has a quick ratio of 0.82, a current ratio of 0.99 and a debt-to-equity ratio of 1.40. Union Pacific Corporation has a twelve month low of $210.84 and a twelve month high of $315.99. The company has a market cap of $177.69 billion, a price-to-earnings ratio of 24.22, a price-to-earnings-growth ratio of 3.00 and a beta of 0.96.

Union Pacific (NYSE:UNP - Get Free Report) last issued its quarterly 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 the consensus estimate of $6.72 billion. During the same period in the prior year, the firm posted $3.03 earnings per share. The business's quarterly revenue was up 11.5% on a year-over-year basis. As a group, analysts predict that Union Pacific Corporation will post 12.93 earnings per share for the current fiscal year.

Union Pacific Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Monday, August 31st will be paid a dividend of $1.42 per share. This is a positive change from Union Pacific's previous quarterly dividend of $1.38. The ex-dividend date is Monday, August 31st. This represents a $5.68 annualized dividend and a yield of 1.9%. Union Pacific's dividend payout ratio (DPR) is presently 44.70%.

Union Pacific Company 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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