Traders Buy High Volume of Call Options on Union Pacific (NYSE:UNP)

Key Points

• UNP call-option activity jumped 44% above normal, with traders purchasing 10,816 contracts, signaling increased near-term bullish positioning.
• Union Pacific reported better-than-expected quarterly results, including $3.41 EPS and $6.86 billion in revenue, with revenue rising 11.5% year over year.
• Analyst sentiment remains constructive, with a consensus “Moderate Buy” rating and a $320.89 price target, while the proposed Norfolk Southern acquisition still requires regulatory approval and faces execution risks.

Union Pacific Corporation (NYSE:UNP - Get Free Report) saw some unusual options trading on Monday. Traders acquired 10,816 call options on the company. This represents an increase of 44% compared to the typical daily volume of 7,529 call options.

Insiders Place Their Bets

In other Union Pacific news, EVP Eric J. Gehringer sold 2,991 shares of the firm's stock in a transaction 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 $11,353,447.52. This trade represents a 6.50% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.22% of the stock is currently owned by corporate insiders.

Institutional Trading of Union Pacific

A number of hedge funds have recently added to or reduced their stakes in UNP. Tucker Asset Management LLC purchased a new stake in shares of Union Pacific during the 4th quarter worth $25,000. SWAN Capital LLC increased its holdings in shares of Union Pacific by 2,575.0% in the 4th quarter. SWAN Capital LLC now owns 107 shares of the railroad operator's stock valued at $25,000 after purchasing an additional 103 shares in the last quarter. Rachor Investment Advisory Services LLC purchased a new position in shares of Union Pacific in the 4th quarter valued at about $25,000. High Point Wealth Management LLC acquired a new stake in shares of Union Pacific in the fourth quarter valued at about $26,000. Finally, Scarborough Advisors LLC acquired a new stake in shares of Union Pacific in the first quarter valued at about $27,000. 80.38% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on UNP shares. UBS Group reiterated a "neutral" rating and issued a $310.00 price objective (up from $286.00) on shares of Union Pacific in a report on Friday. Citigroup boosted their target price on Union Pacific from $326.00 to $349.00 and gave the stock a "buy" rating in a research note on Friday. Evercore reaffirmed an "outperform" rating and issued a $294.00 price target on shares of Union Pacific in a report on Thursday, June 25th. Bank of America increased their price target on shares of Union Pacific from $301.00 to $334.00 and gave the company a "buy" rating in a research note on Thursday. Finally, Raymond James Financial reissued a "strong-buy" rating on shares of Union Pacific in a report on Monday, July 13th. Two research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and seven have given a Hold rating to the company's stock. According to data from MarketBeat.com, Union Pacific has a consensus rating of "Moderate Buy" and a consensus price target of $320.89.

Trending Headlines about Union Pacific

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

• Positive Sentiment: Canadian National said it will not oppose Union Pacific’s proposed acquisition of Norfolk Southern under a revised agreement. The arrangement would give Canadian National access to shipper facilities that could otherwise face fewer Class I railroad options, potentially reducing a source of regulatory resistance. The transaction still requires approval from the Surface Transportation Board. Canadian National won’t fight UP-NS merger under new deal
• Positive Sentiment: Robert W. Baird raised its UNP price target to $344 from $311 and maintained an “outperform” rating, signaling confidence in the railroad’s earnings outlook and potential merger benefits.
• Positive Sentiment: Union Pacific’s latest quarterly results exceeded expectations, with earnings and revenue above consensus and revenue growth of 11.5% year over year. Analysts also point to service-led growth as a potential driver of better margins and future earnings. Union Pacific: Service-Led Growth Can Drive Better Margins And Earnings
• Positive Sentiment: Traders purchased approximately 10,816 UNP call options, about 44% above typical volume, indicating increased near-term bullish positioning, although options activity is not a guarantee of future gains.
• Neutral Sentiment: Analyst coverage remains broadly constructive: Benchmark raised its price target to $335, while the overall analyst consensus is “Moderate Buy.”
• Neutral Sentiment: Market commentary contrasts UNP’s standalone growth prospects with Norfolk Southern’s merger-dependent investment case, potentially making UNP more attractive to investors seeking operating growth rather than event-driven exposure. UNP vs. NSC: One Is a Growth Play, the Other a Merger Bet
• Negative Sentiment: The Norfolk Southern transaction remains subject to STB approval and could face additional scrutiny over competition, shipper access, integration execution, and the cost of combining two major railroads. UNP’s relatively high valuation may also leave the stock vulnerable to profit-taking when merger news does not produce immediate approval.

Union Pacific Stock Performance

NYSE UNP traded down $7.85 during trading hours on Monday, hitting $299.47. The company had a trading volume of 3,061,179 shares, compared to its average volume of 3,177,588. The business has a 50 day moving average of $275.12 and a 200-day moving average of $258.50. The company has a market cap of $177.91 billion, a PE ratio of 24.25, a price-to-earnings-growth ratio of 3.16 and a beta of 0.96. Union Pacific has a 1-year low of $210.84 and a 1-year high of $315.99. The company has a debt-to-equity ratio of 1.40, a quick ratio of 0.82 and a current ratio of 0.99.

Union Pacific (NYSE:UNP - Get Free Report) last posted its earnings results on Thursday, July 23rd. The railroad operator reported $3.41 EPS for the quarter, topping analysts' consensus estimates of $3.26 by $0.15. The business had revenue of $6.86 billion for the quarter, compared to analysts' expectations of $6.72 billion. Union Pacific had a return on equity of 38.46% and a net margin of 28.85%.The business's revenue was up 11.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.03 earnings per share. As a group, equities research analysts expect that Union Pacific will post 12.84 EPS for the current year.

Union Pacific Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Friday, May 29th were issued a $1.38 dividend. This represents a $5.52 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date of this dividend was Friday, May 29th. Union Pacific's dividend payout ratio is presently 44.70%.

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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