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

Key Points

• Union Pacific has a consensus analyst rating of “Moderate Buy” from 21 brokerages, with an average 12-month price target of about $283.11. Most analysts are constructive, including 12 buy ratings and one strong buy.
• The company’s latest quarterly results beat expectations, with EPS of $2.93 versus the $2.86 estimate and revenue of $6.22 billion versus $6.12 billion expected. Revenue rose 3.2% year over year, and analysts expect full-year EPS of 12.55.
• Union Pacific also paid a quarterly dividend of $1.38, equal to an annualized yield of 2.0%. Meanwhile, several insiders sold shares, while institutional investors continue to hold a large majority of the stock at 80.38%.

Union Pacific Corporation (NYSE:UNP - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the twenty-one ratings firms that are presently covering the firm, MarketBeat.com reports. Eight analysts have rated the stock with a hold recommendation, twelve have issued a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month price target among brokers that have issued ratings on the stock in the last year is $283.1053.

A number of equities analysts recently commented on the company. Robert W. Baird set a $311.00 price target on Union Pacific and gave the stock an "outperform" rating in a report on Friday, March 6th. TD Cowen upped their target price on Union Pacific from $256.00 to $282.00 and gave the company a "buy" rating in a research report on Friday, April 24th. Sanford C. Bernstein increased their target price on Union Pacific from $289.00 to $293.00 and gave the stock an "outperform" rating in a research note on Tuesday, March 31st. Royal Bank Of Canada reissued an "outperform" rating and set a $289.00 price target (up from $273.00) on shares of Union Pacific in a report on Friday, April 24th. Finally, Susquehanna restated a "positive" rating and issued a $305.00 price target on shares of Union Pacific in a research note on Friday, June 5th.

Insiders Place Their Bets

In related news, EVP Kenyatta G. Rocker sold 27,387 shares of the stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $271.76, for a total transaction of $7,442,691.12. Following the sale, the executive vice president owned 61,102 shares of the company's stock, valued at $16,605,079.52. This represents a 30.95% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Jennifer L. Hamann sold 2,000 shares of the firm's stock in a transaction on Friday, April 24th. The stock was sold at an average price of $274.70, for a total value of $549,400.00. Following the transaction, the chief financial officer owned 114,642 shares in the company, valued at approximately $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. Insiders have sold a total of 32,378 shares of company stock worth $8,781,595 in the last quarter. Corporate insiders own 0.22% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of UNP. Capital World Investors raised its position in shares of Union Pacific by 92.1% in the 4th quarter. Capital World Investors now owns 20,136,349 shares of the railroad operator's stock valued at $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 in the fourth quarter valued at approximately $1,779,907,000. Capital Research Global Investors raised its position in Union Pacific by 95.0% during the third quarter. Capital Research Global Investors now owns 8,713,196 shares of the railroad operator's stock valued at $2,059,538,000 after purchasing an additional 4,244,226 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted 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 purchasing an additional 3,861,636 shares during the last quarter. Finally, Bank of America Corp DE boosted its holdings in shares of Union Pacific by 16.8% in the 1st quarter. Bank of America Corp DE now owns 14,463,071 shares of the railroad operator's stock valued at $3,509,030,000 after purchasing an additional 2,084,808 shares in the last quarter. Institutional investors own 80.38% of the company's stock.

Union Pacific Stock Performance

Shares of UNP stock opened at $277.79 on Thursday. The company has a fifty day moving average price of $266.41 and a two-hundred day moving average price of $251.76. Union Pacific has a one year low of $210.84 and a one year high of $279.70. The stock has a market cap of $164.93 billion, a P/E ratio of 22.88, a P/E/G ratio of 2.86 and a beta of 0.96. 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 released its quarterly earnings data on Thursday, April 23rd. The railroad operator reported $2.93 earnings per share for the quarter, topping the consensus estimate of $2.86 by $0.07. The company had revenue of $6.22 billion for the quarter, compared to analyst estimates of $6.12 billion. Union Pacific had a net margin of 29.20% and a return on equity of 39.58%. Union Pacific's revenue for the quarter was up 3.2% compared to the same quarter last year. During the same period in the previous year, the business earned $2.70 EPS. As a group, equities analysts predict that Union Pacific will post 12.55 EPS for the current year.

Union Pacific Dividend Announcement

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

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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