Union Pacific Corporation $UNP Stake Boosted by California State Teachers Retirement System

Key Points

• California State Teachers Retirement System dramatically increased its Union Pacific stake by 246.9 million shares in the second quarter, bringing its holdings to 247.7 million shares, or approximately 41.69% of the company. Institutional investors collectively own 80.38% of UNP.
• Analysts remain broadly bullish: Union Pacific has a “Moderate Buy” consensus rating and an average price target of $320.89, with several firms recently raising their targets to as high as $350.
• Union Pacific exceeded quarterly earnings and revenue expectations, reporting $3.41 in EPS and $6.86 billion in revenue. The company also raised its quarterly dividend to $1.42 per share, equivalent to a 2.0% annual yield.

California State Teachers Retirement System increased its position in shares of Union Pacific Corporation (NYSE:UNP - Free Report) by 29,250.5% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 247,700,336 shares of the railroad operator's stock after acquiring an additional 246,856,396 shares during the period. California State Teachers Retirement System owned about 41.69% of Union Pacific worth $67,374,491,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also recently bought and sold shares of the company. Capital Advisors Inc. OK lifted its holdings in shares of Union Pacific by 1.8% during the 2nd quarter. Capital Advisors Inc. OK now owns 1,888 shares of the railroad operator's stock valued at $513,000 after buying an additional 34 shares during the last quarter. Tiemann Investment Advisors LLC increased its holdings in Union Pacific by 1.7% in the second quarter. Tiemann Investment Advisors LLC now owns 2,117 shares of the railroad operator's stock worth $576,000 after buying an additional 35 shares during the last quarter. Burford Brothers Inc. increased its holdings in Union Pacific by 1.9% in the second quarter. Burford Brothers Inc. now owns 1,877 shares of the railroad operator's stock worth $511,000 after buying an additional 35 shares during the last quarter. TFR Capital LLC. raised its position in Union Pacific by 3.8% during the second quarter. TFR Capital LLC. now owns 979 shares of the railroad operator's stock valued at $266,000 after acquiring an additional 36 shares in the last quarter. Finally, Key Financial Inc raised its position in Union Pacific by 2.1% during the first quarter. Key Financial Inc now owns 1,821 shares of the railroad operator's stock valued at $442,000 after acquiring an additional 38 shares in the last quarter. Institutional investors and hedge funds own 80.38% of the company's stock.

Wall Street Analysts Forecast Growth

UNP has been the subject of several recent research reports. TD Cowen reissued a "buy" rating and issued a $325.00 target price (up from $282.00) on shares of Union Pacific in a research report on Friday, July 24th. Robert W. Baird raised their price target on shares of Union Pacific from $311.00 to $344.00 and gave the company an "outperform" rating in a report on Monday, July 27th. Barclays reaffirmed an "overweight" rating and issued a $350.00 price objective (up from $315.00) on shares of Union Pacific in a research note on Friday, July 24th. Evercore reissued an "outperform" rating and set a $294.00 target price on shares of Union Pacific in a research report on Thursday, June 25th. Finally, Stephens upgraded Union Pacific to a "strong-buy" rating in a report on Wednesday, July 8th. Two analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $320.89.

Union Pacific Stock Performance

Shares of UNP opened at $289.54 on Monday. The company has a market capitalization of $172.01 billion, a PE ratio of 23.44, a price-to-earnings-growth ratio of 2.88 and a beta of 0.96. The company has a debt-to-equity ratio of 1.40, a current ratio of 0.99 and a quick ratio of 0.82. Union Pacific Corporation has a one year low of $210.84 and a one year high of $315.99. The company's fifty day moving average price is $293.96 and its 200 day moving average price is $271.00.

Union Pacific (NYSE:UNP - Get Free Report) last released its quarterly earnings results on Thursday, July 23rd. The railroad operator reported $3.41 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.26 by $0.15. The company had revenue of $6.86 billion during the quarter, compared to analysts' expectations of $6.72 billion. Union Pacific had a net margin of 28.85% and a return on equity of 38.46%. The business's quarterly revenue was up 11.5% compared to the same quarter last year. During the same period in the prior year, the company earned $3.03 earnings per share. As a group, analysts expect that Union Pacific Corporation will post 13.02 earnings per share for the current year.

Union Pacific Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Monday, August 31st will be given a dividend of $1.42 per share. The ex-dividend date of this dividend is Monday, August 31st. This represents a $5.68 annualized dividend and a dividend yield of 2.0%. This is a boost from Union Pacific's previous quarterly dividend of $1.38. Union Pacific's payout ratio is presently 45.99%.

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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