Union Pacific (NYSE:UNP) Downgraded by Citigroup to Hold

Key Points

• Citigroup has reaffirmed a "neutral" rating for Union Pacific's stock and adjusted its price target downward from $270.00 to $250.00, indicating an upside potential of 11.70% from current levels.
• Despite the adjustments, analysts remain divided on Union Pacific, with recommendations ranging from sell to strong buy, leading to a consensus rating of "Moderate Buy" and an average price target of $258.63.
• Union Pacific reported a quarterly earnings per share (EPS) of $3.03, exceeding expectations, alongside a revenue of $6.15 billion, revealing a 2.4% increase year-over-year.

Union Pacific (NYSE:UNP - Get Free Report) was downgraded by stock analysts at Citigroup from a "strong-buy" rating to a "hold" rating in a report issued on Wednesday, MarketBeat.com reports. They currently have a $250.00 price objective on the railroad operator's stock, down from their prior price objective of $270.00. Citigroup's price target would suggest a potential upside of 13.99% from the company's previous close.

A number of other brokerages also recently issued reports on UNP. Redburn Atlantic upgraded Union Pacific from a "neutral" rating to a "buy" rating and set a $259.00 price target for the company in a research report on Wednesday, April 16th. Jefferies Financial Group upgraded Union Pacific from a "hold" rating to a "buy" rating and raised their price target for the stock from $250.00 to $285.00 in a research report on Friday, July 25th. Evercore ISI reduced their target price on Union Pacific from $244.00 to $238.00 and set an "in-line" rating on the stock in a research note on Friday, July 25th. UBS Group increased their target price on Union Pacific from $238.00 to $240.00 and gave the stock a "neutral" rating in a research note on Friday, July 25th. Finally, BMO Capital Markets increased their target price on Union Pacific from $270.00 to $277.00 and gave the stock an "outperform" rating in a research note on Friday, July 25th. One equities research analyst has rated the stock with a sell rating, eleven have assigned a hold rating, fourteen have issued a buy rating and two have given a strong buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $258.21.

Union Pacific Price Performance

Shares of NYSE UNP traded down $2.66 during midday trading on Wednesday, reaching $219.31. 4,637,305 shares of the stock traded hands, compared to its average volume of 4,972,172. The company has a debt-to-equity ratio of 1.86, a current ratio of 0.65 and a quick ratio of 0.53. The stock has a market capitalization of $130.06 billion, a PE ratio of 19.05, a P/E/G ratio of 2.16 and a beta of 1.06. Union Pacific has a one year low of $204.66 and a one year high of $258.07. The company's 50 day moving average is $227.09 and its 200 day moving average is $230.93.

Union Pacific (NYSE:UNP - Get Free Report) last posted its earnings results on Thursday, July 24th. The railroad operator reported $3.03 EPS for the quarter, beating analysts' consensus estimates of $2.84 by $0.19. The firm had revenue of $6.15 billion during the quarter, compared to the consensus estimate of $6.09 billion. Union Pacific had a return on equity of 41.73% and a net margin of 28.43%. The company's quarterly revenue was up 2.4% compared to the same quarter last year. During the same period in the prior year, the company earned $2.74 EPS. On average, equities research analysts anticipate that Union Pacific will post 11.99 earnings per share for the current year.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Highline Wealth Partners LLC raised its stake in shares of Union Pacific by 103.5% during the 1st quarter. Highline Wealth Partners LLC now owns 116 shares of the railroad operator's stock worth $27,000 after buying an additional 59 shares during the period. CBIZ Investment Advisory Services LLC increased its position in shares of Union Pacific by 1,400.0% during the first quarter. CBIZ Investment Advisory Services LLC now owns 120 shares of the railroad operator's stock worth $28,000 after purchasing an additional 112 shares in the last quarter. EnRich Financial Partners LLC purchased a new stake in shares of Union Pacific during the fourth quarter worth approximately $31,000. Financial Gravity Asset Management Inc. purchased a new stake in shares of Union Pacific during the first quarter worth approximately $32,000. Finally, WPG Advisers LLC purchased a new stake in shares of Union Pacific during the first quarter worth approximately $33,000. 80.38% of the stock is owned by institutional investors and hedge funds.

About Union Pacific

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. The company offers transportation services for grain and grain products, fertilizers, food and refrigerated products, and coal and renewables to grain processors, animal feeders, ethanol producers, renewable biofuel producers, and other agricultural users; and construction products, industrial chemicals, plastics, forest products, specialized products, metals and ores, petroleum, liquid petroleum gases, soda ash, and sand, as well as finished automobiles, automotive parts, and merchandise in intermodal containers.