Union Pacific Sees Unusually Large Options Volume (NYSE:UNP)

Key Points

• Union Pacific saw unusually heavy options activity on Monday, with traders buying 30,046 call options, about 310% above its typical volume.
• Analysts remain broadly positive on the stock: several firms raised price targets, and MarketBeat data shows a consensus rating of “Moderate Buy” with an average target of $280.47.
• The company beat quarterly expectations with EPS of $2.93 versus $2.86 expected and revenue of $6.22 billion, while also declaring a quarterly dividend of $1.38 per share.

Union Pacific Corporation (NYSE:UNP - Get Free Report) was the target of unusually large options trading on Monday. Traders bought 30,046 call options on the company. This is an increase of approximately 310% compared to the typical volume of 7,326 call options.

Analyst Ratings Changes

Several brokerages recently commented on UNP. Benchmark lifted their price objective on Union Pacific from $275.00 to $300.00 and gave the stock a "buy" rating in a report on Friday, April 24th. JPMorgan Chase & Co. lifted 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 reaffirmed a "neutral" rating and issued a $274.00 price objective (up from $253.00) on shares of Union Pacific in a report on Friday, April 24th. Barclays reaffirmed an "overweight" rating and issued a $315.00 price objective (up from $285.00) on shares of Union Pacific in a report on Friday, April 24th. Finally, Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $289.00 price objective (up from $273.00) on shares of Union Pacific in a report on Friday, April 24th. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and eight have assigned a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $280.47.

Insiders Place Their Bets

In other Union Pacific news, EVP Kenyatta G. Rocker sold 27,387 shares of Union Pacific stock in a transaction 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Eric J. Gehringer sold 1,999 shares of Union Pacific stock in a transaction on Friday, March 20th. The stock was sold at an average price of $234.93, for a total value of $469,625.07. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 31,386 shares of company stock valued at $8,461,716. Corporate insiders own 0.22% of the company's stock.

Hedge Funds Weigh In On Union Pacific

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its position in shares of Union Pacific by 1.1% in the fourth quarter. Vanguard Group Inc. now owns 59,329,262 shares of the railroad operator's stock valued at $13,724,045,000 after acquiring an additional 659,378 shares in the last quarter. State Street Corp lifted its position in shares of Union Pacific by 4.3% in the fourth quarter. State Street Corp now owns 26,330,080 shares of the railroad operator's stock valued at $6,090,674,000 after acquiring an additional 1,082,285 shares in the last quarter. Capital World Investors lifted its position in shares of Union Pacific by 92.1% in the fourth quarter. Capital World Investors now owns 20,136,349 shares of the railroad operator's stock valued at $4,658,142,000 after acquiring an additional 9,655,306 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of Union Pacific by 2.0% in the fourth quarter. Geode Capital Management LLC now owns 15,360,668 shares of the railroad operator's stock valued at $3,552,550,000 after acquiring an additional 296,814 shares in the last quarter. Finally, Morgan Stanley lifted its position in shares of Union Pacific by 5.0% in the fourth quarter. Morgan Stanley now owns 12,636,050 shares of the railroad operator's stock valued at $2,922,971,000 after acquiring an additional 602,647 shares in the last quarter. 80.38% of the stock is currently owned by hedge funds and other institutional investors.

Union Pacific Stock Performance

NYSE UNP traded up $4.37 on Monday, hitting $274.93. 3,196,375 shares of the company traded hands, compared to its average volume of 3,250,684. The company has a market capitalization of $163.23 billion, a price-to-earnings ratio of 22.65, a P/E/G ratio of 2.87 and a beta of 0.99. The company has a current ratio of 0.92, a quick ratio of 0.73 and a debt-to-equity ratio of 1.53. The business's 50 day moving average price is $252.29 and its 200-day moving average price is $242.23. Union Pacific has a 52-week low of $210.84 and a 52-week high of $276.40.

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

Union Pacific Dividend Announcement

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

About Union Pacific

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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