Encompass Capital Advisors LLC Buys Shares of 175,000 Union Pacific Co. (NYSE:UNP)

Encompass Capital Advisors LLC purchased a new position in shares of Union Pacific Co. (NYSE:UNP) during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 175,000 shares of the railroad operator’s stock, valued at approximately $39,907,000. Union Pacific comprises 1.5% of Encompass Capital Advisors LLC’s investment portfolio, making the stock its 28th biggest position.

Several other institutional investors and hedge funds have also modified their holdings of UNP. Compass Financial Services Inc acquired a new stake in shares of Union Pacific in the fourth quarter worth about $25,000. Synergy Asset Management LLC acquired a new stake in Union Pacific in the 4th quarter worth approximately $29,000. EnRich Financial Partners LLC bought a new stake in Union Pacific during the fourth quarter worth approximately $31,000. PrairieView Partners LLC acquired a new position in Union Pacific during the fourth quarter valued at approximately $34,000. Finally, Strategic Investment Solutions Inc. IL raised its position in shares of Union Pacific by 38.8% in the fourth quarter. Strategic Investment Solutions Inc. IL now owns 161 shares of the railroad operator’s stock valued at $39,000 after purchasing an additional 45 shares during the period. Institutional investors and hedge funds own 80.38% of the company’s stock.

Analysts Set New Price Targets

UNP has been the topic of a number of research analyst reports. Barclays lowered their target price on shares of Union Pacific from $285.00 to $260.00 and set an “overweight” rating on the stock in a research note on Friday, April 25th. Raymond James reiterated a “strong-buy” rating on shares of Union Pacific in a research note on Friday, April 25th. Benchmark increased their target price on Union Pacific from $266.00 to $275.00 and gave the company a “buy” rating in a research note on Friday, January 24th. Wells Fargo & Company cut their price target on Union Pacific from $265.00 to $260.00 and set an “overweight” rating for the company in a report on Thursday, March 27th. Finally, Citigroup upgraded shares of Union Pacific from a “neutral” rating to a “buy” rating and lowered their price objective for the stock from $260.00 to $244.00 in a research note on Tuesday, April 8th. One analyst has rated the stock with a sell rating, six have issued a hold rating, fifteen have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, Union Pacific has a consensus rating of “Moderate Buy” and an average target price of $257.86.

Union Pacific Stock Performance

NYSE:UNP opened at $216.85 on Friday. The stock has a market capitalization of $129.56 billion, a P/E ratio of 19.55, a price-to-earnings-growth ratio of 2.15 and a beta of 1.07. Union Pacific Co. has a 1 year low of $204.66 and a 1 year high of $258.07. The firm has a 50 day moving average of $226.17 and a 200-day moving average of $233.96. The company has a current ratio of 0.77, a quick ratio of 0.62 and a debt-to-equity ratio of 1.76.

Union Pacific (NYSE:UNP) last released its quarterly earnings results on Thursday, April 24th. The railroad operator reported $2.70 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.73 by ($0.03). The business had revenue of $6.03 billion during the quarter, compared to the consensus estimate of $6.11 billion. Union Pacific had a net margin of 27.82% and a return on equity of 41.12%. The business’s quarterly revenue was down .1% compared to the same quarter last year. During the same period in the prior year, the firm earned $2.69 earnings per share. As a group, sell-side analysts anticipate that Union Pacific Co. will post 11.99 EPS for the current fiscal year.

Union Pacific Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, June 30th. Stockholders of record on Friday, May 30th will be paid a $1.34 dividend. This represents a $5.36 annualized dividend and a dividend yield of 2.47%. Union Pacific’s dividend payout ratio (DPR) is currently 48.29%.

Union Pacific Company Profile

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.