Westpac Banking Corp Invests $9.66 Million in Union Pacific Corporation $UNP

Key Points

• Westpac Banking Corp. acquired a new $9.66 million stake in Union Pacific during the second quarter, purchasing 35,519 shares. Institutional investors collectively own 80.38% of the railroad operator.
• Analyst sentiment remains positive, with Union Pacific holding a consensus “Moderate Buy” rating and an average price target of $320.89. Several analysts recently raised their targets, including Barclays to $350.
• Union Pacific exceeded quarterly expectations, reporting $3.41 in adjusted EPS and $6.86 billion in revenue, while revenue grew 11.5% year over year. The company also raised its quarterly dividend to $1.42 per share, implying a 1.8% yield.

Westpac Banking Corp bought a new stake in shares of Union Pacific Corporation (NYSE:UNP - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor bought 35,519 shares of the railroad operator's stock, valued at approximately $9,661,000.

Other institutional investors and hedge funds have also recently modified their holdings of the company. TRB Wealth Management LLC bought a new stake in Union Pacific in the second quarter worth $775,000. Sumitomo Life Insurance Co. bought a new position in Union Pacific during the second quarter valued at $1,933,000. Korea Investment CORP bought a new position in Union Pacific during the second quarter valued at $68,449,000. EP Wealth Advisors LLC purchased a new position in shares of Union Pacific in the 2nd quarter worth $79,784,000. Finally, Heartland Bank & Trust Co purchased a new position in shares of Union Pacific in the 2nd quarter worth $837,000. 80.38% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of analysts have recently weighed in on the stock. Barclays restated an "overweight" rating and issued a $350.00 target price (up from $315.00) on shares of Union Pacific in a report on Friday, July 24th. Robert W. Baird lifted their price target on Union Pacific from $311.00 to $344.00 and gave the stock an "outperform" rating in a research report on Monday, July 27th. UBS Group reissued a "neutral" rating and set a $310.00 price objective (up from $286.00) on shares of Union Pacific in a research note on Friday, July 24th. Weiss Ratings upgraded Union Pacific from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, July 24th. Finally, Stephens raised Union Pacific to a "strong-buy" rating in a research note on Wednesday, July 8th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, Union Pacific currently has an average rating of "Moderate Buy" and a consensus price target of $320.89.

Union Pacific Price Performance

Union Pacific stock opened at $307.97 on Friday. Union Pacific Corporation has a 12-month low of $210.84 and a 12-month high of $315.99. The company has a current ratio of 0.99, a quick ratio of 0.82 and a debt-to-equity ratio of 1.40. The firm has a 50-day moving average price of $286.30 and a 200-day moving average price of $267.60. The firm has a market capitalization of $182.96 billion, a PE ratio of 24.94, a price-to-earnings-growth ratio of 3.10 and a beta of 0.96.

Union Pacific (NYSE:UNP - Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The railroad operator reported $3.41 EPS for the quarter, beating the consensus estimate of $3.26 by $0.15. The company had revenue of $6.86 billion for 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 firm's revenue was up 11.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $3.03 EPS. As a group, equities research analysts forecast that Union Pacific Corporation will post 12.93 EPS for the current year.

Union Pacific Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, August 31st will be paid a dividend of $1.42 per share. This is a positive change from Union Pacific's previous quarterly dividend of $1.38. This represents a $5.68 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date of this dividend is Monday, August 31st. Union Pacific's payout ratio is currently 44.70%.

Insider Buying and Selling at Union Pacific

In other news, EVP Eric J. Gehringer sold 2,991 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $263.96, for a total value of $789,504.36. Following the sale, the executive vice president directly owned 43,012 shares in the company, valued at approximately $11,353,447.52. This represents a 6.50% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 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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