Union Pacific (NYSE:UNP) Sets New 1-Year High Following Analyst Upgrade

Key Points

• Union Pacific shares hit a new 52-week high after Raymond James raised its price target from $310 to $363 and kept a strong-buy rating on the stock.
• Other analysts remain broadly positive, with the consensus rating at Moderate Buy and an average price target of $293.33, though there has been one recent downgrade from Weiss Ratings.
• The railroad operator reported solid quarterly results, topping earnings and revenue estimates, and also recently paid a $1.38 quarterly dividend for a 1.9% annualized yield.

Union Pacific Corporation (NYSE:UNP - Get Free Report) shares hit a new 52-week high on Tuesday after Raymond James Financial raised their price target on the stock from $310.00 to $363.00. Raymond James Financial currently has a strong-buy rating on the stock. Union Pacific traded as high as $290.41 and last traded at $289.2620, with a volume of 2276591 shares trading hands. The stock had previously closed at $286.96.

Other research analysts have also issued research reports about the stock. Susquehanna reiterated a "positive" rating and issued a $305.00 price target on shares of Union Pacific in a research note on Friday, June 5th. Royal Bank Of Canada restated an "outperform" rating and set a $289.00 price objective (up from $273.00) on shares of Union Pacific in a research report on Friday, April 24th. Wells Fargo & Company boosted their price objective on Union Pacific from $300.00 to $315.00 and gave the stock an "overweight" rating in a report on Wednesday, July 8th. Sanford C. Bernstein boosted their price objective on Union Pacific from $289.00 to $293.00 and gave the stock an "outperform" rating in a report on Tuesday, March 31st. Finally, Weiss Ratings downgraded Union Pacific from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday, June 23rd. Two analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $293.33.

Insider Buying and Selling at Union Pacific

In other news, EVP Eric J. Gehringer sold 2,991 shares of the business's stock in a transaction that occurred 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 transaction, the executive vice president directly owned 43,012 shares in the company, valued at approximately $11,353,447.52. The trade was a 6.50% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Kenyatta G. Rocker sold 27,387 shares of the business's stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $271.76, for a total transaction of $7,442,691.12. Following the transaction, the executive vice president owned 61,102 shares of the company's stock, valued at approximately $16,605,079.52. This represents a 30.95% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 32,378 shares of company stock valued at $8,781,595 in the last ninety days. 0.22% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Union Pacific

A number of institutional investors have recently modified their holdings of the business. Acadian Asset Management LLC lifted its holdings in shares of Union Pacific by 40.4% in the first quarter. Acadian Asset Management LLC now owns 2,312 shares of the railroad operator's stock worth $546,000 after acquiring an additional 665 shares during the last quarter. Schnieders Capital Management LLC. grew its holdings in shares of 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 purchasing an additional 102 shares during the last quarter. Main Street Financial Solutions LLC increased 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 worth $859,000 after purchasing an additional 58 shares in the last quarter. HUB Investment Partners LLC lifted its stake in Union Pacific by 10.0% in the 2nd quarter. HUB Investment Partners LLC now owns 6,091 shares of the railroad operator's stock valued at $1,401,000 after purchasing an additional 554 shares during the last quarter. Finally, Alliancebernstein L.P. lifted its stake in Union Pacific by 7.4% in the 2nd quarter. Alliancebernstein L.P. now owns 1,528,426 shares of the railroad operator's stock valued at $351,660,000 after purchasing an additional 105,664 shares during the last quarter. Institutional investors and hedge funds own 80.38% of the company's stock.

Union Pacific Price Performance

The company has a debt-to-equity ratio of 1.53, a current ratio of 0.92 and a quick ratio of 0.73. The stock has a market cap of $171.74 billion, a price-to-earnings ratio of 23.83, a price-to-earnings-growth ratio of 3.02 and a beta of 0.96. The business's 50-day simple moving average is $269.62 and its two-hundred day simple moving average is $254.46.

Union Pacific (NYSE:UNP - Get Free Report) last posted its earnings results on Thursday, April 23rd. The railroad operator reported $2.93 earnings per share 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 analysts' expectations of $6.12 billion. During the same quarter in the previous year, the firm posted $2.70 earnings per share. The company's revenue was up 3.2% on a year-over-year basis. Research analysts expect that Union Pacific Corporation will post 12.56 earnings per share for the current year.

Union Pacific Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Friday, May 29th were issued a $1.38 dividend. This represents a $5.52 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend was Friday, May 29th. Union Pacific's dividend payout ratio is presently 45.47%.

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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