Union Pacific Corporation $UNP Stock Position Cut by Scharf Investments LLC

Key Points

• Scharf Investments LLC trimmed its Union Pacific stake by 1.8% in Q4 to 655,996 shares (about $151.75M), representing roughly 4.1% of the firm’s holdings and ~0.11% of UNP.
• Union Pacific missed Q4 expectations, reporting EPS of $2.86 versus $2.92 expected and revenue of $6.09B (versus $6.15B), with revenue down 0.6% year‑over‑year.
• The company pays a quarterly dividend of $1.38 ($5.52 annualized, ~2.3% yield), and Wall Street consensus rates UNP as a "Moderate Buy" with a $265.18 average price target.

Scharf Investments LLC lessened its stake in Union Pacific Corporation (NYSE:UNP - Free Report) by 1.8% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 655,996 shares of the railroad operator's stock after selling 12,096 shares during the period. Union Pacific makes up approximately 4.1% of Scharf Investments LLC's holdings, making the stock its 6th largest position. Scharf Investments LLC owned about 0.11% of Union Pacific worth $151,748,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently modified their holdings of UNP. Stephens Consulting LLC increased its position in Union Pacific by 48.4% during the fourth quarter. Stephens Consulting LLC now owns 135 shares of the railroad operator's stock valued at $31,000 after acquiring an additional 44 shares during the last quarter. Howard Capital Management Group LLC boosted its position in Union Pacific by 2.0% in the third quarter. Howard Capital Management Group LLC now owns 2,252 shares of the railroad operator's stock worth $532,000 after purchasing an additional 45 shares during the last quarter. Prestige Wealth Management Group LLC boosted its position in Union Pacific by 1.4% in the third quarter. Prestige Wealth Management Group LLC now owns 3,186 shares of the railroad operator's stock worth $753,000 after purchasing an additional 45 shares during the last quarter. Keebeck Wealth Management grew its stake in shares of Union Pacific by 1.7% during the 3rd quarter. Keebeck Wealth Management now owns 2,691 shares of the railroad operator's stock valued at $636,000 after purchasing an additional 45 shares during the period. Finally, Hanson & Doremus Investment Management increased its position in shares of Union Pacific by 2.5% during the 3rd quarter. Hanson & Doremus Investment Management now owns 1,880 shares of the railroad operator's stock valued at $444,000 after purchasing an additional 46 shares during the last quarter. 80.38% of the stock is owned by institutional investors.

Union Pacific Trading Up 1.4%

Shares of Union Pacific stock opened at $242.55 on Wednesday. Union Pacific Corporation has a fifty-two week low of $204.66 and a fifty-two week high of $268.14. The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.75 and a current ratio of 0.91. The company has a market capitalization of $143.93 billion, a P/E ratio of 20.26, a P/E/G ratio of 2.61 and a beta of 0.95. The company has a fifty day moving average of $248.96 and a 200 day moving average of $235.56.

Union Pacific (NYSE:UNP - Get Free Report) last released its earnings results on Tuesday, January 27th. The railroad operator reported $2.86 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.92 by ($0.06). The business had revenue of $6.09 billion for the quarter, compared to analysts' expectations of $6.15 billion. Union Pacific had a return on equity of 40.89% and a net margin of 29.12%.The business's revenue for the quarter was down .6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.91 EPS. On average, sell-side analysts anticipate that Union Pacific Corporation will post 11.99 earnings per share for the current fiscal year.

Union Pacific Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Friday, February 27th were issued a $1.38 dividend. This represents a $5.52 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date was Friday, February 27th. Union Pacific's payout ratio is currently 46.12%.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on UNP. JPMorgan Chase & Co. cut their target price on shares of Union Pacific from $270.00 to $265.00 and set a "neutral" rating for the company in a research report on Wednesday, January 28th. Susquehanna reiterated a "buy" rating on shares of Union Pacific in a research report on Monday, January 19th. The Goldman Sachs Group reiterated a "neutral" rating and set a $267.00 price target on shares of Union Pacific in a research note on Tuesday, January 27th. Weiss Ratings raised shares of Union Pacific from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, February 6th. Finally, Barclays restated an "overweight" rating and issued a $285.00 price objective (up from $270.00) on shares of Union Pacific in a research note on Tuesday, December 16th. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and eight have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $265.18.

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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