Union Pacific (NYSE:UNP) Sets New 12-Month High - Here's Why

Key Points

• Union Pacific shares hit a new 52-week high, trading as high as $282.19 as investor sentiment remained strong.
• Analysts remain cautiously positive, with a consensus rating of “Moderate Buy” and an average price target of $283.11 after several firms raised targets.
• The company posted solid quarterly results and pays a steady dividend, beating earnings and revenue estimates while maintaining a 2.0% dividend yield.

Union Pacific Corporation (NYSE:UNP - Get Free Report) shares hit a new 52-week high during trading on Thursday . The company traded as high as $282.19 and last traded at $280.9050, with a volume of 132589 shares trading hands. The stock had previously closed at $277.73.

Analyst Upgrades and Downgrades

UNP has been the subject of several research reports. Raymond James Financial set a $310.00 target price on Union Pacific in a research note on Friday, April 24th. BMO Capital Markets reiterated a "market perform" rating and issued a $285.00 price target (up from $278.00) on shares of Union Pacific in a report on Friday, April 24th. JPMorgan Chase & Co. boosted their price objective on Union Pacific from $267.00 to $275.00 and gave the stock a "neutral" rating in a report on Friday, April 24th. UBS Group restated a "neutral" rating and set a $274.00 target price (up from $253.00) on shares of Union Pacific in a research report on Friday, April 24th. Finally, Sanford C. Bernstein raised their target price on shares of Union Pacific from $289.00 to $293.00 and gave the company an "outperform" rating in a research note on Tuesday, March 31st. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $283.11.

Union Pacific Price Performance

The company has a debt-to-equity ratio of 1.53, a quick ratio of 0.73 and a current ratio of 0.92. The firm has a market capitalization of $167.28 billion, a P/E ratio of 23.22, a price-to-earnings-growth ratio of 2.86 and a beta of 0.96. The company has a 50-day moving average price of $266.41 and a 200-day moving average price of $251.76.

Union Pacific (NYSE:UNP - Get Free Report) last announced its quarterly earnings data on Thursday, April 23rd. The railroad operator reported $2.93 EPS for the quarter, topping analysts' consensus estimates of $2.86 by $0.07. Union Pacific had a return on equity of 39.58% and a net margin of 29.20%.The business had revenue of $6.22 billion during the quarter, compared to analysts' expectations of $6.12 billion. During the same period in the previous year, the firm earned $2.70 earnings per share. The firm's quarterly revenue was up 3.2% compared to the same quarter last year. On average, sell-side analysts predict that Union Pacific Corporation will post 12.55 earnings per share for the current year.

Union Pacific Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Friday, May 29th were paid 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 dividend yield of 2.0%. Union Pacific's dividend payout ratio is 45.47%.

Insider Activity at Union Pacific

In other Union Pacific news, EVP Kenyatta G. Rocker sold 27,387 shares of the stock in a transaction on Friday, April 24th. The shares were sold at an average price of $271.76, for a total value of $7,442,691.12. Following the sale, the executive vice president directly owned 61,102 shares in the company, 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 SEC, which is accessible through the SEC website. Also, CFO Jennifer L. Hamann sold 2,000 shares of Union Pacific stock in a transaction on Friday, April 24th. The stock was sold at an average price of $274.70, for a total transaction of $549,400.00. Following the transaction, the chief financial officer directly owned 114,642 shares in the company, valued at approximately $31,492,157.40. This represents a 1.71% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 32,378 shares of company stock worth $8,781,595 in the last ninety days. Company insiders own 0.22% of the company's stock.

Institutional Trading of Union Pacific

Large investors have recently made changes to their positions in the company. Rachor Investment Advisory Services LLC bought a new stake in shares of Union Pacific in the fourth quarter worth about $25,000. Tucker Asset Management LLC bought a new position in shares of Union Pacific during the 4th quarter valued at about $25,000. SWAN Capital LLC lifted its holdings in shares of Union Pacific by 2,575.0% during the 4th quarter. SWAN Capital LLC now owns 107 shares of the railroad operator's stock valued at $25,000 after purchasing an additional 103 shares in the last quarter. High Point Wealth Management LLC acquired a new position in shares of Union Pacific in the 4th quarter valued at approximately $26,000. Finally, Saranac Partners Ltd bought a new stake in Union Pacific during the 3rd quarter worth approximately $27,000. Institutional investors own 80.38% of the company's stock.

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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