Union Pacific Corporation $UNP Shares Sold by Jennison Associates LLC

Key Points

• Jennison Associates LLC reduced its Union Pacific stake by 18.1% in the first quarter, selling 153,204 shares and ending with 693,249 shares valued at about $168.2 million.
• Analysts remain broadly bullish on UNP, with several firms raising price targets and the stock carrying a consensus “Moderate Buy” rating and average target of $299.11.
• Union Pacific reported solid recent results and continues to pay a dividend, with quarterly EPS and revenue both beating estimates and a $1.38 per-share dividend recently paid, yielding about 1.8% annually.

Jennison Associates LLC lessened its stake in Union Pacific Corporation (NYSE:UNP - Free Report) by 18.1% in the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 693,249 shares of the railroad operator's stock after selling 153,204 shares during the quarter. Jennison Associates LLC owned about 0.12% of Union Pacific worth $168,196,000 at the end of the most recent reporting period.

Several other large investors also recently bought and sold shares of UNP. Rachor Investment Advisory Services LLC acquired a new position in shares of Union Pacific during the fourth quarter worth $25,000. Tucker Asset Management LLC purchased a new position in shares of Union Pacific in the fourth quarter valued at $25,000. SWAN Capital LLC boosted its stake in shares of Union Pacific by 2,575.0% in the fourth 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 acquired a new stake in Union Pacific during the 4th quarter valued at $26,000. Finally, Cornerstone Financial Management LLC acquired a new stake in Union Pacific during the 4th quarter valued at $27,000. Institutional investors and hedge funds own 80.38% of the company's stock.

Analyst Ratings Changes

Several analysts have recently weighed in on UNP shares. Sanford C. Bernstein raised their target price on Union Pacific from $289.00 to $293.00 and gave the company an "outperform" rating in a research note on Tuesday, March 31st. Evercore reissued an "outperform" rating and issued a $294.00 price target on shares of Union Pacific in a report on Thursday, June 25th. Barclays restated an "overweight" rating and set a $315.00 price objective (up from $285.00) on shares of Union Pacific in a research note on Friday, April 24th. Wells Fargo & Company lifted their price objective on Union Pacific from $300.00 to $315.00 and gave the stock an "overweight" rating in a report on Wednesday, July 8th. Finally, Royal Bank Of Canada reiterated an "outperform" rating and set a $289.00 target price (up from $273.00) on shares of Union Pacific in a research note on Friday, April 24th. Two analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $299.11.

Insider Transactions at Union Pacific

In related news, EVP Eric J. Gehringer sold 2,991 shares of the company's stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $263.96, for a total transaction of $789,504.36. Following the sale, the executive vice president directly owned 43,012 shares of the company's stock, valued at approximately $11,353,447.52. This represents a 6.50% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Jennifer L. Hamann sold 2,000 shares of the firm's stock in a transaction on Friday, April 24th. The stock was sold at an average price of $274.70, for a total value of $549,400.00. Following the transaction, the chief financial officer owned 114,642 shares in the company, valued at $31,492,157.40. This trade represents a 1.71% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 32,378 shares of company stock worth $8,781,595. 0.22% of the stock is currently owned by corporate insiders.

Key Union Pacific News

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

Union Pacific Price Performance

UNP opened at $301.44 on Friday. The company has a market capitalization of $178.96 billion, a P/E ratio of 24.83, a PEG ratio of 3.16 and a beta of 0.96. The company has a 50-day moving average of $271.93 and a 200-day moving average of $256.00. The company has a debt-to-equity ratio of 1.53, a quick ratio of 0.73 and a current ratio of 0.92. Union Pacific Corporation has a 1-year low of $210.84 and a 1-year high of $303.15.

Union Pacific (NYSE:UNP - Get Free Report) last issued 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. The business had revenue of $6.22 billion for the quarter, compared to analysts' expectations of $6.12 billion. Union Pacific had a net margin of 29.20% and a return on equity of 39.58%. The company's quarterly revenue was up 3.2% compared to the same quarter last year. During the same quarter last year, the company posted $2.70 earnings per share. Equities analysts expect that Union Pacific Corporation will post 12.62 EPS for the current fiscal year.

Union Pacific Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Friday, May 29th were issued a dividend of $1.38 per share. This represents a $5.52 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date of this dividend was Friday, May 29th. Union Pacific's dividend payout ratio (DPR) is currently 45.47%.

About Union Pacific

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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