Independent Financial Group LLC Makes New $1.45 Million Investment in Union Pacific Corporation $UNP

Independent Financial Group LLC purchased a new position in Union Pacific Corporation (NYSE:UNP) in the first quarter, according to its most recent disclosure with the SEC. The institutional investor purchased 5,992 shares of the railroad operator’s stock, valued at approximately $1,454,000.

Several other institutional investors and hedge funds have also made changes to their positions in UNP. Vanguard Group Inc. boosted its stake in Union Pacific by 1.1% during 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 in the last quarter. State Street Corp raised its stake in shares of Union Pacific by 4.3% in the 4th quarter. State Street Corp now owns 26,330,080 shares of the railroad operator’s stock worth $6,090,674,000 after buying an additional 1,082,285 shares in the last quarter. Capital World Investors lifted its holdings 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 valued at $4,658,142,000 after buying an additional 9,655,306 shares during the period. Geode Capital Management LLC lifted its holdings in shares of Union Pacific by 2.0% in 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 buying an additional 296,814 shares during the period. Finally, Morgan Stanley lifted its holdings in shares of Union Pacific by 5.0% in the fourth quarter. Morgan Stanley now owns 12,636,050 shares of the railroad operator’s stock valued at $2,922,971,000 after buying an additional 602,647 shares during the period. 80.38% of the stock is currently owned by institutional investors.

Key Stories Impacting Union Pacific

Here are the key news stories impacting Union Pacific this week:

• Positive Sentiment: Union Pacific received the first rail from Rocky Mountain Steel’s new $1.2 billion Pueblo mill, kicking off a seven-year domestic supply contract that could improve rail-input reliability and support efficiency. Article Title
• Positive Sentiment: Several analysts remain constructive, with recent price-target increases and buy/outperform-style ratings helping reinforce expectations for stronger earnings and continued momentum. Article Title
• Positive Sentiment: Heading into Q2 results, earnings estimates have been rising as stronger freight demand may offset volume and supply-chain pressures, which could set up a positive catalyst if Union Pacific beats expectations. Article Title
• Neutral Sentiment: A valuation article said Union Pacific looks fairly valued on cash flow, suggesting the shares may be closer to intrinsic value than deeply discounted, which is less of a near-term trading catalyst. Article Title
• Negative Sentiment: Dan Loeb’s Third Point cut its Union Pacific stake by more than 90% while also slashing other railroad holdings, a move that may pressure sentiment around the sector amid merger uncertainty. Article Title

Union Pacific Stock Performance

Shares of NYSE UNP opened at $301.44 on Monday. The stock’s fifty day simple moving average is $271.93 and its 200 day simple moving average is $256.15. The stock has a market capitalization of $178.96 billion, a price-to-earnings ratio of 24.83, a PEG ratio of 3.16 and a beta of 0.96. The company has a quick ratio of 0.73, a current ratio of 0.92 and a debt-to-equity ratio of 1.53. Union Pacific Corporation has a 52-week low of $210.84 and a 52-week high of $303.15.

Union Pacific (NYSE:UNP) last announced its earnings results on Thursday, April 23rd. The railroad operator reported $2.93 EPS for the quarter, beating the consensus estimate of $2.86 by $0.07. Union Pacific had a return on equity of 39.58% and a net margin of 29.20%.The business had revenue of $6.22 billion during the quarter, compared to the consensus estimate of $6.12 billion. During the same period in the prior year, the business posted $2.70 earnings per share. Union Pacific’s revenue was up 3.2% compared to the same quarter last year. As a group, sell-side analysts forecast that Union Pacific Corporation will post 12.62 earnings per share for the current fiscal year.

Union Pacific Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Friday, May 29th were issued a $1.38 dividend. This represents a $5.52 annualized dividend and a dividend yield of 1.8%. The ex-dividend date was Friday, May 29th. Union Pacific’s dividend payout ratio (DPR) is presently 45.47%.

Insiders Place Their Bets

In other news, EVP Kenyatta G. Rocker sold 27,387 shares of Union Pacific stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $271.76, for a total value of $7,442,691.12. Following the transaction, the executive vice president directly owned 61,102 shares of the company’s stock, valued at $16,605,079.52. This trade represents a 30.95% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Jennifer L. Hamann sold 2,000 shares of the business’s stock in a transaction that occurred on Friday, April 24th. The shares were sold at an average price of $274.70, for a total transaction of $549,400.00. Following the sale, the chief financial officer owned 114,642 shares in the company, valued at $31,492,157.40. This represents a 1.71% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 32,378 shares of company stock worth $8,781,595 over the last ninety days. 0.22% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on UNP. UBS Group reaffirmed a “neutral” rating and set a $274.00 target price (up from $253.00) on shares of Union Pacific in a report on Friday, April 24th. Susquehanna upped their price target on shares of Union Pacific from $305.00 to $333.00 and gave the company a “positive” rating in a report on Tuesday, July 14th. JPMorgan Chase & Co. raised their price objective on shares of Union Pacific from $275.00 to $304.00 and gave the company a “neutral” rating in a research report on Friday, July 10th. BMO Capital Markets reaffirmed a “market perform” rating and issued a $285.00 price objective (up from $278.00) on shares of Union Pacific in a research note on Friday, April 24th. Finally, Benchmark reiterated a “buy” rating and issued a $325.00 target price (up from $300.00) on shares of Union Pacific in a report on Wednesday. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $299.11.

Union Pacific Company Profile

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.