Union Pacific Corporation $UNP Shares Purchased by Canada Pension Plan Investment Board

Key Points

• The Canada Pension Plan Investment Board increased its stake in Union Pacific Corporation by 10.8%, now owning over 4.6 million shares valued at approximately $1.09 billion.
• Union Pacific's recent quarterly earnings surpassed expectations, reporting an EPS of $3.03 against a forecast of $2.84, along with revenues of $6.15 billion.
• The company announced a quarterly dividend increase to $1.38 per share, reflecting a positive change and a 2.5% yield for shareholders.

Canada Pension Plan Investment Board raised its stake in Union Pacific Corporation (NYSE:UNP - Free Report) by 10.8% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 4,626,200 shares of the railroad operator's stock after purchasing an additional 452,788 shares during the period. Union Pacific accounts for 1.1% of Canada Pension Plan Investment Board's holdings, making the stock its 20th biggest holding. Canada Pension Plan Investment Board owned 0.77% of Union Pacific worth $1,092,893,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. AQR Capital Management LLC grew its holdings in shares of Union Pacific by 7.8% during the fourth quarter. AQR Capital Management LLC now owns 185,886 shares of the railroad operator's stock valued at $42,389,000 after buying an additional 13,410 shares during the last quarter. Freestone Grove Partners LP bought a new stake in Union Pacific during the 4th quarter worth approximately $36,189,000. LGT Financial Advisors LLC bought a new position in shares of Union Pacific in the 4th quarter worth $91,000. FAS Wealth Partners Inc. increased its holdings in shares of Union Pacific by 2.6% in the 4th quarter. FAS Wealth Partners Inc. now owns 13,954 shares of the railroad operator's stock worth $3,182,000 after buying an additional 360 shares during the last quarter. Finally, Keel Point LLC increased its holdings in shares of Union Pacific by 8.0% in the 4th quarter. Keel Point LLC now owns 4,187 shares of the railroad operator's stock worth $955,000 after buying an additional 311 shares during the last quarter. 80.38% of the stock is owned by institutional investors.

Union Pacific Stock Performance

UNP stock traded down $1.67 during trading on Tuesday, reaching $221.90. The company had a trading volume of 3,529,892 shares, compared to its average volume of 3,427,007. Union Pacific Corporation has a twelve month low of $204.66 and a twelve month high of $258.07. 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 company has a market cap of $131.60 billion, a price-to-earnings ratio of 19.28, a price-to-earnings-growth ratio of 2.17 and a beta of 1.03. The firm has a 50-day simple moving average of $226.98 and a 200-day simple moving average of $227.56.

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 firm had revenue of $6.15 billion during the quarter, compared to analyst estimates of $6.09 billion. Union Pacific had a net margin of 28.43% and a return on equity of 41.73%. The business's quarterly revenue was up 2.4% on a year-over-year basis. During the same period in the previous year, the firm earned $2.74 EPS. As a group, sell-side analysts expect that Union Pacific Corporation will post 11.99 earnings per share for the current year.

Union Pacific Increases Dividend

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

Analysts Set New Price Targets

A number of equities analysts have recently commented on the stock. Wells Fargo & Company increased their price target on shares of Union Pacific from $250.00 to $260.00 and gave the stock an "overweight" rating in a report on Friday, July 25th. Baird R W raised shares of Union Pacific to a "hold" rating in a report on Tuesday, July 1st. Citigroup lowered shares of Union Pacific from a "strong-buy" rating to a "hold" rating and decreased their price target for the stock from $270.00 to $250.00 in a report on Wednesday, July 30th. Royal Bank Of Canada increased their price target on shares of Union Pacific from $257.00 to $276.00 and gave the stock an "outperform" rating in a report on Wednesday, July 30th. Finally, The Goldman Sachs Group reissued a "neutral" rating and issued a $263.00 price target on shares of Union Pacific in a report on Monday, June 2nd. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, Union Pacific currently has an average rating of "Moderate Buy" and a consensus target price of $258.21.

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.