Wellington Management Group LLP Trims Stock Holdings in Union Pacific Corporation $UNP

Key Points

• Wellington Management cut its Union Pacific position by 13.1% in the second quarter, selling 41,409 shares and retaining 273,793 shares valued at approximately $74.5 million. Institutional investors and hedge funds own 80.38% of the company.
• Union Pacific reported quarterly EPS of $3.41 and revenue of $6.86 billion, exceeding analyst estimates, while revenue increased 11.5% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $320.89.
• The company raised its quarterly dividend to $1.42 per share, equivalent to an annualized $5.68 dividend and a 2.0% yield. Despite positive earnings and analyst sentiment, valuation appears close to fair value, potentially limiting near-term upside.

Wellington Management Group LLP lessened its position in shares of Union Pacific Corporation (NYSE:UNP - Free Report) by 13.1% during the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 273,793 shares of the railroad operator's stock after selling 41,409 shares during the quarter. Wellington Management Group LLP's holdings in Union Pacific were worth $74,472,000 at the end of the most recent reporting period.

A number of other hedge funds have also modified their holdings of the company. Cambient Family Office LLC purchased a new position in Union Pacific during the fourth quarter valued at approximately $1,319,000. First National Bank of Omaha increased its holdings in Union Pacific by 35.8% in the 4th quarter. First National Bank of Omaha now owns 54,635 shares of the railroad operator's stock worth $12,665,000 after acquiring an additional 14,399 shares in the last quarter. North Dakota State Investment Board purchased a new stake in shares of Union Pacific during the fourth quarter worth about $4,746,000. Sage Investment Advisers LLC purchased a new stake in Union Pacific during the 4th quarter worth approximately $997,000. Finally, National Pension Service increased its position in shares of Union Pacific by 1.2% during the fourth quarter. National Pension Service now owns 1,316,496 shares of the railroad operator's stock worth $304,532,000 after purchasing an additional 15,785 shares in the last quarter. 80.38% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of research firms have commented on UNP. JPMorgan Chase & Co. increased their price objective on shares of Union Pacific from $304.00 to $334.00 and gave the company a "neutral" rating in a report on Friday, July 24th. Weiss Ratings raised Union Pacific from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, July 24th. Wells Fargo & Company restated an "overweight" rating and set a $335.00 price target (up from $315.00) on shares of Union Pacific in a research note on Friday, July 24th. Bank of America boosted their price target on shares of Union Pacific from $301.00 to $334.00 and gave the stock a "buy" rating in a research note on Thursday, July 23rd. Finally, UBS Group reaffirmed a "neutral" rating and set a $310.00 price objective (up from $286.00) on shares of Union Pacific in a research report on Friday, July 24th. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $320.89.

Union Pacific Trading Down 0.1%

Shares of UNP stock opened at $290.24 on Thursday. The firm has a market capitalization of $172.42 billion, a PE ratio of 23.50, a P/E/G ratio of 2.89 and a beta of 0.96. Union Pacific Corporation has a 1-year low of $210.84 and a 1-year high of $315.99. The business's fifty day moving average price is $293.12 and its 200 day moving average price is $270.59. 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 (NYSE:UNP - Get Free Report) last posted 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 the consensus estimate of $6.72 billion. Union Pacific had a net margin of 28.85% and a return on equity of 38.46%. The company's revenue for the quarter was up 11.5% on a year-over-year basis. During the same period last year, the firm earned $3.03 EPS. As a group, sell-side analysts forecast that Union Pacific Corporation will post 13.02 EPS for the current fiscal year.

Union Pacific Increases Dividend

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

Key Headlines Impacting Union Pacific

Here are the key news stories impacting Union Pacific this week:

• Positive Sentiment: Analyst upgrade supports near-term optimism. Zacks upgraded Union Pacific to Rank #2 (Buy), citing improving earnings prospects that could attract additional investor interest. Zacks Union Pacific rating upgrade
• Positive Sentiment: Union Pacific continues to outperform the broader market. Coverage indicates UNP has beaten the S&P 500 over the past year, with analysts remaining moderately optimistic about its outlook. Union Pacific versus the S&P 500
• Positive Sentiment: Some analysts see earnings growth ahead. Erste Group Bank maintained a Buy rating and projected EPS of $13.08 for fiscal 2026 and $14.20 for fiscal 2027, with the latter above the current consensus estimate of roughly $13.01. Union Pacific analyst estimates
• Neutral Sentiment: Merger and railroad execution remain important catalysts. Recent management commentary addressed the state of Union Pacific’s railroad and progress on the proposed Southern merger. The updates may influence long-term growth expectations, but the supplied reports do not identify a definitive new financial impact. Union Pacific railroad and merger update
• Negative Sentiment: Valuation appears close to fair value. After a roughly 51% five-year total return, a DCF analysis places intrinsic value only slightly below UNP’s current price. That suggests limited margin of safety and may encourage profit-taking despite the company’s strong operating record. Union Pacific fair value analysis

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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