Union Pacific (NYSE:UNP) Rating Lowered to Hold at Argus

Key Points

• Union Pacific's stock rating has been downgraded by Argus from "buy" to "hold," reflecting a cautious outlook from the analysts.
• The average price target for Union Pacific is currently set at $258.21, with a consensus rating of "Moderate Buy" among analysts.
• In recent earnings, Union Pacific reported $3.03 earnings per share, surpassing expectations and showing a 2.4% year-over-year increase in revenue.

Argus cut shares of Union Pacific (NYSE:UNP - Free Report) from a buy rating to a hold rating in a report published on Tuesday, MarketBeat Ratings reports.

Other analysts have also issued research reports about the stock. Bank of America boosted their target price on shares of Union Pacific from $256.00 to $262.00 and gave the company a "buy" rating in a research note on Friday, May 16th. Baird R W upgraded shares of Union Pacific to a "hold" rating in a research report on Tuesday, July 1st. Royal Bank Of Canada upped their price target on shares of Union Pacific from $257.00 to $276.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 30th. Wells Fargo & Company upped their price target on shares of Union Pacific from $250.00 to $260.00 and gave the stock an "overweight" rating in a research report on Friday, July 25th. Finally, Citigroup lowered shares of Union Pacific from a "strong-buy" rating to a "hold" rating and lowered their price target for the stock from $270.00 to $250.00 in a research report on Wednesday, July 30th. One research analyst has rated the stock with a sell rating, twelve have issued a hold rating, fourteen have issued a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat, Union Pacific currently has an average rating of "Moderate Buy" and an average price target of $258.21.

Union Pacific Stock Performance

UNP stock traded down $0.97 during trading on Tuesday, hitting $220.55. 3,739,243 shares of the company's stock traded hands, compared to its average volume of 5,544,143. The company has a quick ratio of 0.53, a current ratio of 0.65 and a debt-to-equity ratio of 1.86. Union Pacific has a 52 week low of $204.66 and a 52 week high of $258.07. The stock has a fifty day moving average price of $227.06 and a two-hundred day moving average price of $229.57. The stock has a market capitalization of $130.79 billion, a price-to-earnings ratio of 19.16, a price-to-earnings-growth ratio of 2.15 and a beta of 1.05.

Union Pacific (NYSE:UNP - Get Free Report) last released its earnings results on Thursday, July 24th. The railroad operator reported $3.03 earnings per share for the quarter, beating the consensus estimate of $2.84 by $0.19. Union Pacific had a net margin of 28.43% and a return on equity of 41.73%. The firm had revenue of $6.15 billion during the quarter, compared to analyst estimates of $6.09 billion. During the same quarter in the previous year, the firm earned $2.74 earnings per share. The firm's revenue for the quarter was up 2.4% compared to the same quarter last year. As a group, equities analysts anticipate that Union Pacific will post 11.99 EPS for the current fiscal year.

Union Pacific Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Friday, August 29th will be paid a dividend of $1.38 per share. This is a boost from Union Pacific's previous quarterly dividend of $1.34. This represents a $5.52 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend is Friday, August 29th. Union Pacific's payout ratio is currently 46.57%.

Institutional Trading of Union Pacific

A number of hedge funds have recently bought and sold shares of the company. Nikko Asset Management Americas Inc. lifted its stake in Union Pacific by 19.4% during the second quarter. Nikko Asset Management Americas Inc. now owns 5,845 shares of the railroad operator's stock valued at $1,344,000 after buying an additional 949 shares in the last quarter. Teachers Insurance & Annuity Association of America acquired a new position in shares of Union Pacific in the 2nd quarter valued at about $61,000. Public Sector Pension Investment Board increased its holdings in shares of Union Pacific by 0.7% in the 2nd quarter. Public Sector Pension Investment Board now owns 778,683 shares of the railroad operator's stock valued at $179,159,000 after purchasing an additional 5,506 shares during the period. FORA Capital LLC acquired a new position in shares of Union Pacific in the 2nd quarter valued at about $3,166,000. Finally, Evergreen Capital Management LLC increased its holdings in shares of Union Pacific by 3.1% in the 2nd quarter. Evergreen Capital Management LLC now owns 8,995 shares of the railroad operator's stock valued at $2,069,000 after purchasing an additional 268 shares during the period. 80.38% of the stock is owned by hedge funds and other institutional investors.

About Union Pacific

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. The company offers transportation services for grain and grain products, fertilizers, food and refrigerated products, and coal and renewables to grain processors, animal feeders, ethanol producers, renewable biofuel producers, and other agricultural users; and construction products, industrial chemicals, plastics, forest products, specialized products, metals and ores, petroleum, liquid petroleum gases, soda ash, and sand, as well as finished automobiles, automotive parts, and merchandise in intermodal containers.