Union Pacific (NYSE:UNP) Reaches New 1-Year High - Here's Why

Key Points

• Union Pacific hit a new 52-week high, trading as high as $275.21 as investors reacted to strong recent momentum in the stock.
• Analysts turned more positive on UNP, with several firms raising price targets; the consensus rating is now Moderate Buy with an average target of $280.47.
• The company also reported solid quarterly results, beating EPS and revenue estimates, while announcing a $1.38 quarterly dividend payable June 30.

Union Pacific Corporation (NYSE:UNP - Get Free Report) reached a new 52-week high on Monday . The company traded as high as $275.21 and last traded at $275.2140, with a volume of 911234 shares. The stock had previously closed at $270.56.

Analyst Ratings Changes

A number of equities analysts recently weighed in on UNP shares. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $289.00 price target (up from $273.00) on shares of Union Pacific in a report on Friday, April 24th. TD Cowen upped their price objective on shares of Union Pacific from $256.00 to $282.00 and gave the stock a "buy" rating in a research report on Friday, April 24th. Benchmark upped their price objective on shares of Union Pacific from $275.00 to $300.00 and gave the stock a "buy" rating in a research report on Friday, April 24th. BMO Capital Markets restated a "market perform" rating and set a $285.00 price objective (up from $278.00) on shares of Union Pacific in a research report on Friday, April 24th. Finally, UBS Group restated a "neutral" rating and set a $274.00 price objective (up from $253.00) on shares of Union Pacific in a research report on Friday, April 24th. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $280.47.

Union Pacific Price Performance

The stock's 50-day moving average price is $252.29 and its 200 day moving average price is $242.23. The firm has a market capitalization of $163.44 billion, a price-to-earnings ratio of 22.66, a PEG ratio of 2.87 and a beta of 0.99. The company has a quick ratio of 0.73, a current ratio of 0.92 and a debt-to-equity ratio of 1.53.

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

Union Pacific Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Friday, May 29th will be issued a $1.38 dividend. This represents a $5.52 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend is Friday, May 29th. Union Pacific's dividend payout ratio (DPR) is currently 45.47%.

Insider Activity at Union Pacific

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 value of $7,442,691.12. Following the completion of the sale, the executive vice president owned 61,102 shares of the company's stock, valued at approximately $16,605,079.52. This trade represents a 30.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Jennifer L. Hamann sold 2,000 shares of the stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $274.70, for a total value 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 approximately $31,492,157.40. This represents a 1.71% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 31,386 shares of company stock valued at $8,461,716. 0.22% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Union Pacific

Several hedge funds and other institutional investors have recently bought and sold shares of UNP. Capital World Investors increased its position in 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 purchasing an additional 9,655,306 shares during the last quarter. Norges Bank acquired a new stake in Union Pacific during the fourth quarter worth $1,779,907,000. Capital Research Global Investors increased its stake 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 worth $2,059,538,000 after acquiring an additional 4,244,226 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased 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 during the last quarter. Finally, EdgePoint Investment Group Inc. acquired a new stake in shares of Union Pacific during the third quarter valued at about $408,592,000. 80.38% of the stock is currently owned by institutional investors and hedge funds.

Union Pacific Company Profile

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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