Union Pacific Target of Unusually Large Options Trading (NYSE:UNP)

Key Points

• Union Pacific saw unusually heavy options activity on Wednesday, with traders buying 13,601 call options, about 47% above the stock’s average daily call volume.
• Analysts remain generally constructive on UNP, with several firms lifting price targets and the consensus rating sitting at “Moderate Buy” with an average target of $282.21.
• The stock dipped 1.2% to $268.02 despite reporting better-than-expected quarterly earnings and revenue, and the company also announced a quarterly dividend of $1.38 per share.

Union Pacific Corporation (NYSE:UNP - Get Free Report) was the target of some unusual options trading on Wednesday. Traders acquired 13,601 call options on the stock. This is an increase of 47% compared to the average daily volume of 9,227 call options.

Analysts Set New Price Targets

A number of equities analysts have commented on UNP shares. JPMorgan Chase & Co. boosted their target price on Union Pacific from $267.00 to $275.00 and gave the stock a "neutral" rating in a research report on Friday, April 24th. Citigroup reiterated a "buy" rating and issued a $307.00 price objective (up from $285.00) on shares of Union Pacific in a research report on Friday, April 24th. Evercore restated an "outperform" rating and set a $277.00 target price on shares of Union Pacific in a research report on Friday, April 24th. Weiss Ratings upgraded shares of Union Pacific from a "buy (b-)" rating to a "buy (b)" rating in a research note on Tuesday, April 21st. Finally, Benchmark upped their target price 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. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and eight have assigned a Hold rating to the company's stock. According to MarketBeat, Union Pacific currently has a consensus rating of "Moderate Buy" and a consensus target price of $282.21.

Union Pacific Trading Down 1.2%

NYSE:UNP traded down $3.27 during mid-day trading on Wednesday, reaching $268.02. The company's stock had a trading volume of 634,083 shares, compared to its average volume of 3,230,403. The company's fifty day simple moving average is $260.56 and its two-hundred day simple moving average is $247.90. The company has a debt-to-equity ratio of 1.53, a current ratio of 0.92 and a quick ratio of 0.73. Union Pacific has a twelve month low of $210.84 and a twelve month high of $279.70. The stock has a market cap of $159.12 billion, a P/E ratio of 22.10, a P/E/G ratio of 2.85 and a beta of 0.97.

Union Pacific (NYSE:UNP - Get Free Report) last released 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. 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%.The company's quarterly revenue was up 3.2% compared to the same quarter last year. During the same period last year, the business posted $2.70 EPS. On average, equities analysts predict that Union Pacific will post 12.53 EPS for the current year.

Union Pacific Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Friday, May 29th will be issued 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 2.1%. Union Pacific's payout ratio is currently 45.47%.

Insider Transactions at Union Pacific

In related news, EVP Eric J. Gehringer sold 2,991 shares of the company's stock in a transaction 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 sale, the executive vice president owned 43,012 shares in the company, valued at $11,353,447.52. This represents a 6.50% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Jennifer L. Hamann sold 2,000 shares of the firm's 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 $31,492,157.40. The trade was a 1.71% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 34,377 shares of company stock worth $9,251,221. Insiders own 0.22% of the company's stock.

Institutional Trading of Union Pacific

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. boosted its position in shares of Union Pacific by 1.1% in the 4th quarter. Vanguard Group Inc. now owns 59,329,262 shares of the railroad operator's stock valued at $13,724,045,000 after purchasing an additional 659,378 shares during the period. State Street Corp increased 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 worth $6,090,674,000 after acquiring an additional 1,082,285 shares in the last quarter. Capital World Investors increased 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 worth $4,658,142,000 after acquiring an additional 9,655,306 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of Union Pacific by 2.0% during 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 during the period. Finally, Bank of America Corp DE lifted its position in shares of Union Pacific by 16.8% in the 1st quarter. Bank of America Corp DE now owns 14,463,071 shares of the railroad operator's stock valued at $3,509,030,000 after acquiring an additional 2,084,808 shares in the last quarter. Institutional investors own 80.38% of the company's stock.

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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