Union Pacific Corporation $UNP Shares Sold by Skylands Capital LLC

Key Points

• Skylands Capital LLC trimmed its Union Pacific stake by 2.5% in Q1, but the railroad remained its largest holding at 6.9% of the portfolio. The firm still owned 217,255 shares valued at about $52.7 million.
• Union Pacific reported better-than-expected quarterly results, with EPS of $2.93 topping estimates and revenue of $6.22 billion also beating forecasts. Revenue rose 3.2% year over year, and analysts now expect about 12.55 EPS for the full fiscal year.
• The company also announced a quarterly dividend of $1.38 per share, payable June 30, implying an annualized dividend of $5.52 and a yield of about 2.0%. Meanwhile, analysts remain generally constructive, with an average Moderate Buy rating and a consensus target price of $283.11.

Skylands Capital LLC cut its stake in Union Pacific Corporation (NYSE:UNP - Free Report) by 2.5% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 217,255 shares of the railroad operator's stock after selling 5,640 shares during the quarter. Union Pacific comprises about 6.9% of Skylands Capital LLC's investment portfolio, making the stock its biggest position. Skylands Capital LLC's holdings in Union Pacific were worth $52,710,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors also recently modified their holdings of the company. Cambient Family Office LLC acquired a new stake in Union Pacific in the fourth quarter valued at approximately $1,319,000. Jefferies Financial Group Inc. lifted its position in shares of Union Pacific by 1,581.2% during the third quarter. Jefferies Financial Group Inc. now owns 232,000 shares of the railroad operator's stock worth $54,838,000 after purchasing an additional 218,200 shares in the last quarter. North Dakota State Investment Board acquired a new position in shares of Union Pacific during the fourth quarter worth $4,746,000. First National Bank of Omaha lifted its position in shares of Union Pacific by 35.8% during the fourth quarter. First National Bank of Omaha now owns 54,635 shares of the railroad operator's stock worth $12,665,000 after purchasing an additional 14,399 shares in the last quarter. Finally, Avanza Fonder AB purchased a new position in shares of Union Pacific in the fourth quarter valued at $1,449,000. Institutional investors and hedge funds own 80.38% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the stock. Benchmark raised their price target on shares of Union Pacific from $275.00 to $300.00 and gave the company a "buy" rating in a report on Friday, April 24th. Weiss Ratings lowered shares of Union Pacific from a "buy (b)" rating to a "buy (b-)" rating in a report on Tuesday. UBS Group reissued a "neutral" rating and issued a $274.00 price objective (up from $253.00) on shares of Union Pacific in a research report on Friday, April 24th. Evercore reaffirmed an "outperform" rating and set a $294.00 target price on shares of Union Pacific in a research report on Thursday. Finally, Sanford C. Bernstein boosted their price target on Union Pacific from $289.00 to $293.00 and gave the stock an "outperform" rating in a research note on Tuesday, March 31st. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and eight have given a Hold rating to the company. According to MarketBeat.com, Union Pacific has an average rating of "Moderate Buy" and an average target price of $283.11.

Union Pacific Stock Up 0.7%

Shares of NYSE:UNP opened at $269.56 on Friday. The company has a current ratio of 0.92, a quick ratio of 0.73 and a debt-to-equity ratio of 1.53. The company has a fifty day simple moving average of $265.05 and a 200 day simple moving average of $250.81. The firm has a market cap of $160.04 billion, a PE ratio of 22.20, a price-to-earnings-growth ratio of 2.84 and a beta of 0.97. Union Pacific Corporation has a 12-month low of $210.84 and a 12-month high of $279.70.

Union Pacific (NYSE:UNP - Get Free Report) last posted its quarterly earnings results on Thursday, April 23rd. The railroad operator reported $2.93 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $6.22 billion for the quarter, compared to analysts' expectations of $6.12 billion. During the same period in the prior year, the company posted $2.70 earnings per share. The firm's quarterly revenue was up 3.2% on a year-over-year basis. On average, equities research analysts anticipate that Union Pacific Corporation will post 12.55 EPS for the current fiscal year.

Union Pacific Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Friday, May 29th will be paid a $1.38 dividend. This represents a $5.52 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date is Friday, May 29th. Union Pacific's dividend payout ratio is 45.47%.

Insider Transactions at Union Pacific

In other news, EVP Eric J. Gehringer sold 2,991 shares of the stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $263.96, for a total transaction of $789,504.36. Following the transaction, the executive vice president owned 43,012 shares of the company's stock, valued at approximately $11,353,447.52. This trade represents a 6.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Kenyatta G. Rocker sold 27,387 shares of Union Pacific stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $271.76, for a total value of $7,442,691.12. Following the completion of the transaction, the executive vice president owned 61,102 shares of the company's stock, valued at $16,605,079.52. This trade represents a 30.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 32,378 shares of company stock valued at $8,781,595. Insiders own 0.22% of the company's stock.

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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