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

Union Pacific Co. (NYSE:UNP) shares gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. 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 traded.

The railroad operator reported $2.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.50 by $0.19. The firm had revenue of $6.03 billion for the quarter, compared to analyst estimates of $5.97 billion. Union Pacific had a return on equity of 44.34% and a net margin of 26.52%. The company’s quarterly revenue was down .4% compared to the same quarter last year. During the same period in the previous year, the company posted $2.67 earnings per share.

Union Pacific Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, March 29th. Shareholders 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 was Wednesday, February 28th. Union Pacific’s payout ratio is 49.62%.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on UNP shares. TD Cowen lifted their price objective on Union Pacific from $252.00 to $258.00 and gave the company a “buy” rating in a report on Friday. Benchmark lifted their price objective on Union Pacific from $260.00 to $266.00 and gave the company a “buy” rating in a report on Wednesday, April 10th. 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. lifted their price objective on Union Pacific from $237.00 to $243.00 and gave the company a “neutral” rating in a report on Tuesday, April 9th. Finally, BMO Capital Markets boosted their target price on Union Pacific from $270.00 to $275.00 and gave the stock an “outperform” rating in a report on Friday, January 26th. Seven research analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, Union Pacific currently has a consensus rating of “Moderate Buy” and a consensus price target of $258.78.

Insider Buying and Selling

In related news, President Elizabeth F. Whited sold 3,750 shares of the business’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 in the company, valued at approximately $14,170,500. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.28% of the stock is currently owned by corporate insiders.

Institutional Trading of Union Pacific

Several institutional investors and hedge funds have recently made changes to their positions in the business. Phoenix Wealth Advisors raised its position in shares of Union Pacific by 1.4% during the 1st quarter. Phoenix Wealth Advisors now owns 11,968 shares of the railroad operator’s stock valued at $2,943,000 after acquiring an additional 160 shares during the last quarter. NORTHSTAR ASSET MANAGEMENT Co LLC increased its position in shares of Union Pacific by 0.4% in the 1st quarter. NORTHSTAR ASSET MANAGEMENT Co LLC now owns 13,688 shares of the railroad operator’s stock valued at $3,366,000 after buying an additional 60 shares in the last quarter. Conning Inc. increased its position in shares of Union Pacific by 4.0% in the 1st quarter. Conning Inc. now owns 151,396 shares of the railroad operator’s stock valued at $37,162,000 after buying an additional 5,885 shares in the last quarter. LifeSteps Financial Inc. bought a new stake in shares of Union Pacific in the 1st quarter valued at $31,000. Finally, Prestige Wealth Management Group LLC increased its position in shares of Union Pacific by 1.4% in the 1st quarter. Prestige Wealth Management Group LLC now owns 3,015 shares of the railroad operator’s stock valued at $741,000 after buying an additional 42 shares in the last quarter. Institutional investors own 80.38% of the company’s stock.

Union Pacific Stock Performance

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

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.