Union Pacific (NYSE:UNP) Shares Gap Up Following Strong Earnings

Union Pacific Co. (NYSE:UNP)’s stock price gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $231.98, but opened at $240.24. Union Pacific shares last traded at $242.74, with a volume of 1,104,255 shares changing hands.

The railroad operator reported $2.69 EPS for the quarter, beating the consensus estimate of $2.50 by $0.19. Union Pacific had a net margin of 26.52% and a return on equity of 44.34%. The business had revenue of $6.03 billion for the quarter, compared to the consensus estimate of $5.97 billion. During the same period in the prior year, the firm earned $2.67 EPS. The business’s revenue for the quarter was down .4% on a year-over-year basis.

Union Pacific Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, March 29th. Investors of record on Thursday, February 29th were issued a dividend of $1.30 per share. This represents a $5.20 dividend on an annualized basis and a yield of 2.14%. The ex-dividend date of this dividend was Wednesday, February 28th. Union Pacific’s dividend payout ratio (DPR) is presently 49.62%.

Analyst Ratings Changes

A number of analysts recently issued reports on the stock. UBS Group increased their price target on shares of Union Pacific from $235.00 to $248.00 and gave the stock a “neutral” rating in a report on Friday, January 26th. Susquehanna increased their price objective on shares of Union Pacific from $255.00 to $270.00 and gave the company a “neutral” rating in a report on Friday. Raymond James reaffirmed a “strong-buy” rating and set a $280.00 price objective (up from $275.00) on shares of Union Pacific in a report on Friday. JPMorgan Chase & Co. increased their price objective on shares of Union Pacific from $237.00 to $243.00 and gave the company a “neutral” rating in a report on Tuesday, April 9th. Finally, The Goldman Sachs Group increased their target price on shares of Union Pacific from $248.00 to $274.00 and gave the company a “buy” rating in a research report on Thursday, April 11th. Seven investment analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $258.78.

Insider Activity

In other news, President Elizabeth F. Whited sold 3,750 shares of the firm’s stock in a transaction that occurred on Thursday, February 15th. The shares were sold at an average price of $250.00, for a total value of $937,500.00. Following the completion of the transaction, the president now owns 56,682 shares of the company’s stock, valued at $14,170,500. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Insiders own 0.28% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Norges Bank purchased a new position in shares of Union Pacific in the fourth quarter valued at approximately $1,832,127,000. Wellington Management Group LLP lifted its stake in Union Pacific by 0.3% in the third quarter. Wellington Management Group LLP now owns 7,261,449 shares of the railroad operator’s stock worth $1,478,649,000 after acquiring an additional 19,145 shares during the last quarter. Capital Research Global Investors lifted its stake in Union Pacific by 23.1% in the fourth quarter. Capital Research Global Investors now owns 6,851,767 shares of the railroad operator’s stock worth $1,682,931,000 after acquiring an additional 1,285,144 shares during the last quarter. Northern Trust Corp lifted its stake in Union Pacific by 4.4% in the third quarter. Northern Trust Corp now owns 6,803,796 shares of the railroad operator’s stock worth $1,385,457,000 after acquiring an additional 285,988 shares during the last quarter. Finally, Fisher Asset Management LLC lifted its stake in Union Pacific by 2.2% in the fourth quarter. Fisher Asset Management LLC now owns 5,867,842 shares of the railroad operator’s stock worth $1,441,260,000 after acquiring an additional 125,522 shares during the last quarter. Hedge funds and other institutional investors own 80.38% of the company’s stock.

Union Pacific Stock Down 0.3 %

The business’s 50 day moving average is $244.27 and its 200-day moving average is $234.95. The company has a debt-to-equity ratio of 1.99, a current ratio of 0.93 and a quick ratio of 0.67. The company has a market cap of $148.16 billion, a PE ratio of 23.17, a P/E/G ratio of 2.63 and a beta of 1.07.

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.