Union Pacific Corporation (NYSE:UNP) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• Analyst sentiment is favorable: Union Pacific has a consensus “Moderate Buy” rating from 21 analysts, with 13 buys, six holds and two strong buys. The average 12-month price target is approximately $320.89.
• Quarterly results exceeded expectations: Union Pacific reported earnings of $3.41 per share versus the $3.26 consensus estimate, while revenue reached $6.86 billion and rose 11.5% year over year.
• The company raised its dividend: The quarterly payout increased from $1.38 to $1.42 per share, equating to $5.68 annually and a 1.9% yield.

Shares of Union Pacific Corporation (NYSE:UNP - Get Free Report) have received a consensus rating of "Moderate Buy" from the twenty-one analysts that are presently covering the company, MarketBeat reports. Six research analysts have rated the stock with a hold rating, thirteen have issued a buy rating and two have given a strong buy rating to the company. The average twelve-month target price among brokerages that have issued a report on the stock in the last year is $320.8947.

A number of brokerages have issued reports on UNP. Citigroup increased their price objective on shares of Union Pacific from $326.00 to $349.00 and gave the stock a "buy" rating in a research note on Friday, July 24th. Barclays reissued 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. Benchmark boosted their price objective on shares of Union Pacific from $325.00 to $335.00 and gave the company a "buy" rating in a research report on Friday, July 24th. Wells Fargo & Company restated an "overweight" rating and set a $335.00 target price (up from $315.00) on shares of Union Pacific in a research note on Friday, July 24th. Finally, JPMorgan Chase & Co. raised their target price on Union Pacific from $304.00 to $334.00 and gave the company a "neutral" rating in a report on Friday, July 24th.

Union Pacific Stock Performance

NYSE:UNP opened at $304.34 on Friday. The company has a market cap of $180.80 billion, a price-to-earnings ratio of 24.64, a PEG ratio of 3.08 and a beta of 0.96. Union Pacific has a fifty-two week low of $210.84 and a fifty-two week 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. The stock has a fifty day moving average price of $285.59 and a 200-day moving average price of $267.31.

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, topping analysts' consensus estimates of $3.26 by $0.15. The company 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%.Union Pacific's revenue was up 11.5% on a year-over-year basis. During the same quarter last year, the business earned $3.03 earnings per share. As a group, equities analysts anticipate that Union Pacific will post 12.93 EPS for the current fiscal 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 is Monday, August 31st. This represents a $5.68 annualized dividend and a dividend yield of 1.9%. This is an increase from Union Pacific's previous quarterly dividend of $1.38. Union Pacific's dividend payout ratio is currently 44.70%.

Insider Buying and Selling at Union Pacific

In related news, EVP Eric J. Gehringer sold 2,991 shares of the firm's stock in a transaction dated 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 of the company's stock, 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 SEC, which is available through this link. 0.22% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Capital World Investors increased its holdings in shares of Union Pacific by 92.1% during the fourth quarter. Capital World Investors now owns 20,136,349 shares of the railroad operator's stock worth $4,658,142,000 after buying an additional 9,655,306 shares in the last quarter. Norges Bank bought a new position in Union Pacific during the fourth quarter worth $1,779,907,000. Legal & General Group Plc bought a new position in shares of Union Pacific in the 2nd quarter worth about $1,193,135,000. Canada Pension Plan Investment Board acquired a new position in Union Pacific in the second quarter valued at approximately $1,094,677,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Union Pacific by 72.7% during the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,177,002 shares of the railroad operator's stock worth $2,169,168,000 after acquiring an additional 3,861,636 shares in the last quarter. Institutional investors own 80.38% of the company's stock.

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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