Union Pacific (NYSE:UNP) Rating Increased to Buy at Citigroup

Key Points

• Citigroup upgraded Union Pacific from a "neutral" rating to a "buy" rating with a new price objective of $251.00, reflecting a potential upside of 16.89%.
• Other analysts have mixed opinions, with price targets ranging from $215.00 to $286.00, indicating a general optimism for the stock.
• Union Pacific recently reported $3.03 earnings per share for the quarter, exceeding expectations and showing a 2.4% year-over-year revenue growth.

Union Pacific (NYSE:UNP - Get Free Report) was upgraded by research analysts at Citigroup from a "neutral" rating to a "buy" rating in a research note issued to investors on Monday, MarketBeat.com reports. The firm presently has a $251.00 price objective on the railroad operator's stock, up from their previous price objective of $250.00. Citigroup's price target would indicate a potential upside of 16.89% from the stock's current price.

A number of other research analysts have also weighed in on the company. Morgan Stanley reduced their price target on Union Pacific from $220.00 to $215.00 and set an "equal weight" rating on the stock in a research note on Monday, July 7th. BMO Capital Markets increased their price target on Union Pacific from $270.00 to $277.00 and gave the stock an "outperform" rating in a research note on Friday, July 25th. Wells Fargo & Company upped their price objective on Union Pacific from $250.00 to $260.00 and gave the stock an "overweight" rating in a report on Friday, July 25th. Sanford C. Bernstein upped their price objective on Union Pacific from $271.00 to $286.00 and gave the stock an "outperform" rating in a report on Monday, July 21st. Finally, UBS Group upped their price objective on Union Pacific from $238.00 to $240.00 and gave the stock a "neutral" rating in a report on Friday, July 25th. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $258.25.

Union Pacific Stock Down 0.6%

Union Pacific stock opened at $214.73 on Monday. Union Pacific has a fifty-two week low of $204.66 and a fifty-two week high of $256.84. The company has a debt-to-equity ratio of 1.86, a quick ratio of 0.53 and a current ratio of 0.65. The company has a market capitalization of $127.34 billion, a P/E ratio of 18.66, a PEG ratio of 2.09 and a beta of 1.03. The stock has a 50-day simple moving average of $224.46 and a 200-day simple moving average of $225.79.

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 (EPS) for the quarter, topping the consensus estimate of $2.84 by $0.19. Union Pacific had a return on equity of 41.73% and a net margin of 28.43%.The company had revenue of $6.15 billion for the quarter, compared to analysts' expectations of $6.09 billion. During the same quarter in the previous year, the firm posted $2.74 EPS. The firm's quarterly revenue was up 2.4% on a year-over-year basis. Equities research analysts expect that Union Pacific will post 11.99 earnings per share for the current year.

Hedge Funds Weigh In On Union Pacific

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. SevenBridge Financial Group LLC grew its position in Union Pacific by 18.1% during the 2nd quarter. SevenBridge Financial Group LLC now owns 16,547 shares of the railroad operator's stock worth $3,620,000 after purchasing an additional 2,534 shares in the last quarter. Osaic Holdings Inc. boosted its stake in shares of Union Pacific by 9.7% during the 2nd quarter. Osaic Holdings Inc. now owns 150,636 shares of the railroad operator's stock valued at $34,734,000 after buying an additional 13,332 shares during the period. Total Investment Management Inc. acquired a new stake in shares of Union Pacific in the 2nd quarter valued at $31,000. Tribridge Partners Financial LLC acquired a new stake in shares of Union Pacific in the 2nd quarter valued at $707,000. Finally, Thrivent Financial for Lutherans lifted its stake in shares of Union Pacific by 3.1% in the 2nd quarter. Thrivent Financial for Lutherans now owns 117,492 shares of the railroad operator's stock valued at $27,134,000 after purchasing an additional 3,519 shares during the last quarter. 80.38% of the stock is currently owned by hedge funds and other institutional investors.

Union Pacific Company Profile

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.

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