Union Pacific Corporation (NYSE:UNP) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analyst sentiment is positive: Union Pacific has an average broker rating of “Moderate Buy” from 21 analysts, with 12 buy or strong buy ratings and an average 12-month price target of about $282.21.
• Latest quarter beat expectations: The railroad operator reported $2.93 EPS on revenue of $6.22 billion, both topping Wall Street estimates, and revenue rose 3.2% from a year earlier.
• Dividend and insider activity: Union Pacific declared a quarterly dividend of $1.38 per share for a 2.0% yield, while several executives recently sold shares and insiders now own just 0.22% of the company.

Union Pacific Corporation (NYSE:UNP - Get Free Report) has been given an average recommendation of "Moderate Buy" by the twenty-one brokerages that are covering the firm, MarketBeat Ratings reports. Eight analysts have rated the stock with a hold recommendation, twelve have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month price objective among brokerages that have issued a report on the stock in the last year is $282.2105.

UNP has been the subject of a number of research reports. Wells Fargo & Company reaffirmed an "overweight" rating and issued a $300.00 price objective (up from $260.00) on shares of Union Pacific in a research note on Friday, April 24th. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $289.00 price objective (up from $273.00) on shares of Union Pacific in a research note on Friday, April 24th. Barclays reaffirmed an "overweight" rating and issued a $315.00 price objective (up from $285.00) on shares of Union Pacific in a research note on Friday, April 24th. Evercore reaffirmed an "outperform" rating and issued a $277.00 price objective on shares of Union Pacific in a research note on Friday, April 24th. Finally, Citigroup reaffirmed a "buy" rating and issued a $307.00 price objective (up from $285.00) on shares of Union Pacific in a research note on Friday, April 24th.

Union Pacific Price Performance

Shares of NYSE:UNP opened at $272.28 on Friday. The company's fifty day moving average price is $259.32 and its 200-day moving average price is $247.03. The firm has a market capitalization of $161.66 billion, a price-to-earnings ratio of 22.43, a PEG ratio of 2.89 and a beta of 0.97. Union Pacific has a one year low of $210.84 and a one year high of $279.70. The company has a debt-to-equity ratio of 1.53, a current ratio of 0.92 and a quick ratio of 0.73.

Union Pacific (NYSE:UNP - Get Free Report) last issued its quarterly earnings results on Thursday, April 23rd. The railroad operator reported $2.93 EPS for the quarter, topping analysts' consensus estimates of $2.86 by $0.07. Union Pacific had a net margin of 29.20% and a return on equity of 39.58%. The firm had revenue of $6.22 billion for the quarter, compared to analyst estimates of $6.12 billion. During the same quarter in the prior year, the firm earned $2.70 EPS. The business's revenue for the quarter was up 3.2% compared to the same quarter last year. On average, equities research analysts anticipate that Union Pacific will post 12.53 earnings per share for the current fiscal year.

Union Pacific Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Friday, May 29th will be paid a $1.38 dividend. The ex-dividend date of this dividend is Friday, May 29th. This represents a $5.52 dividend on an annualized basis and a dividend yield of 2.0%. Union Pacific's dividend payout ratio is 45.47%.

Insider Activity

In other news, EVP Eric J. Gehringer sold 2,991 shares of the company's stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $263.96, for a total value of $789,504.36. Following the completion of the sale, the executive vice president owned 43,012 shares of the company's stock, valued at approximately $11,353,447.52. This represents a 6.50% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Jennifer L. Hamann sold 2,000 shares of the company's stock in a transaction on Friday, April 24th. The shares were sold at an average price of $274.70, for a total transaction of $549,400.00. Following the completion of the sale, the chief financial officer directly owned 114,642 shares of the company's stock, valued at $31,492,157.40. This trade represents a 1.71% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 34,377 shares of company stock valued at $9,251,221. Corporate insiders own 0.22% of the company's stock.

Institutional Investors Weigh In On Union Pacific

Several institutional investors have recently added to or reduced their stakes in UNP. Acadian Asset Management LLC boosted its position in Union Pacific by 40.4% during the 1st quarter. Acadian Asset Management LLC now owns 2,312 shares of the railroad operator's stock valued at $546,000 after buying an additional 665 shares during the period. Schnieders Capital Management LLC. boosted its position in Union Pacific by 0.5% during the 2nd quarter. Schnieders Capital Management LLC. now owns 20,606 shares of the railroad operator's stock valued at $4,741,000 after buying an additional 102 shares during the period. Main Street Financial Solutions LLC boosted its position in Union Pacific by 1.6% during the 2nd quarter. Main Street Financial Solutions LLC now owns 3,733 shares of the railroad operator's stock valued at $859,000 after buying an additional 58 shares during the period. HUB Investment Partners LLC boosted its position in Union Pacific by 10.0% during the 2nd quarter. HUB Investment Partners LLC now owns 6,091 shares of the railroad operator's stock valued at $1,401,000 after buying an additional 554 shares during the period. Finally, Alliancebernstein L.P. boosted its position in Union Pacific by 7.4% during the 2nd quarter. Alliancebernstein L.P. now owns 1,528,426 shares of the railroad operator's stock valued at $351,660,000 after buying an additional 105,664 shares during the period. Hedge funds and other 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.