Union Pacific Corporation $UNP Shares Acquired by Royal Bank of Canada

Royal Bank of Canada increased its stake in Union Pacific Corporation (NYSE:UNP) by 0.5% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 4,617,313 shares of the railroad operator’s stock after purchasing an additional 23,698 shares during the period. Royal Bank of Canada’s holdings in Union Pacific were worth $1,120,251,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Acadian Asset Management LLC lifted its stake in Union Pacific by 40.4% in the first quarter. Acadian Asset Management LLC now owns 2,312 shares of the railroad operator’s stock valued at $546,000 after buying an additional 665 shares during the last quarter. Schnieders Capital Management LLC. grew its position in shares of Union Pacific by 0.5% during the second quarter. Schnieders Capital Management LLC. now owns 20,606 shares of the railroad operator’s stock worth $4,741,000 after acquiring an additional 102 shares during the last quarter. Main Street Financial Solutions LLC grew its position in shares of Union Pacific by 1.6% during the second quarter. Main Street Financial Solutions LLC now owns 3,733 shares of the railroad operator’s stock worth $859,000 after acquiring an additional 58 shares during the last quarter. HUB Investment Partners LLC increased its holdings in shares of Union Pacific by 10.0% in the 2nd quarter. HUB Investment Partners LLC now owns 6,091 shares of the railroad operator’s stock worth $1,401,000 after acquiring an additional 554 shares during the period. Finally, Alliancebernstein L.P. lifted its position in Union Pacific by 7.4% in the 2nd quarter. Alliancebernstein L.P. now owns 1,528,426 shares of the railroad operator’s stock valued at $351,660,000 after purchasing an additional 105,664 shares during the last quarter. Institutional investors and hedge funds own 80.38% of the company’s stock.

Insider Buying and Selling

In related news, EVP Eric J. Gehringer sold 2,991 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $263.96, for a total transaction of $789,504.36. Following the completion of the sale, the executive vice president directly owned 43,012 shares of the company’s stock, valued at $11,353,447.52. This represents a 6.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.22% of the stock is currently owned by corporate insiders.

Key Stories Impacting Union Pacific

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

• Positive Sentiment: Union Pacific and Norfolk Southern submitted additional customer protections to the Surface Transportation Board (STB), including expanded gateway pricing and temporary access to competing rail service if performance deteriorates. The commitments are intended to address shipper concerns and improve the merger’s chances of regulatory approval. Union Pacific, Norfolk Southern add new customer protections as STB merger review advances
• Positive Sentiment: Canadian National reportedly will not oppose the transaction under the revised arrangement, which would give CN access to certain shipper facilities facing fewer Class I railroad options. Reduced opposition may help the regulatory review advance. Canadian National won’t fight UP-NS merger under new deal
• Positive Sentiment: Robert W. Baird raised its Union Pacific price target to $344 from $311 and maintained an “outperform” rating, citing potential upside from the company’s operating outlook. Baird raises Union Pacific price target
• Positive Sentiment: Unusual options activity and recent analyst commentary point to continued investor interest in Union Pacific’s service-led growth strategy, margin improvement potential and standalone earnings prospects.
• Neutral Sentiment: Union Pacific’s second-quarter results exceeded expectations, with earnings of $3.41 per share and revenue of $6.86 billion. Revenue increased 11.5% year over year, providing fundamental support for the stock, although valuation remains elevated at roughly 24 times earnings.
• Negative Sentiment: The merger remains subject to STB approval, and the new customer guarantees could increase execution obligations and limit some of the anticipated financial benefits. Investors are also comparing UNP’s operating growth with Norfolk Southern’s more event-driven merger valuation, contributing to near-term uncertainty. Union Pacific, Norfolk Southern file supplemental information to STB on merger

Analyst Ratings Changes

UNP has been the subject of a number of analyst reports. Weiss Ratings raised shares of Union Pacific from a “buy (b-)” rating to a “buy (b)” rating in a research note on Friday. BMO Capital Markets restated a “market perform” rating and issued a $320.00 price target (up from $285.00) on shares of Union Pacific in a research note on Friday. Evercore reaffirmed an “outperform” rating and set a $294.00 price target on shares of Union Pacific in a report on Thursday, June 25th. Barclays reiterated an “overweight” rating and set a $350.00 price objective (up from $315.00) on shares of Union Pacific in a research report on Friday. Finally, Sanford C. Bernstein increased their price objective on Union Pacific from $289.00 to $293.00 and gave the stock an “outperform” rating in a report on Tuesday, March 31st. Two analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $320.89.

Union Pacific Stock Down 1.6%

UNP stock opened at $294.48 on Wednesday. The firm’s 50-day moving average is $276.08 and its two-hundred day moving average is $259.46. The company has a market capitalization of $174.94 billion, a price-to-earnings ratio of 23.84, a price-to-earnings-growth ratio of 3.08 and a beta of 0.96. Union Pacific Corporation has a 52 week low of $210.84 and a 52 week high of $315.99. The company has a current ratio of 0.99, a quick ratio of 0.82 and a debt-to-equity ratio of 1.40.

Union Pacific (NYSE:UNP) last posted its quarterly earnings data on Thursday, July 23rd. The railroad operator reported $3.41 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.26 by $0.15. The business had revenue of $6.86 billion during the quarter, compared to analysts’ expectations of $6.72 billion. Union Pacific had a net margin of 28.85% and a return on equity of 38.46%. The business’s revenue was up 11.5% on a year-over-year basis. During the same period last year, the firm posted $3.03 earnings per share. On average, analysts forecast that Union Pacific Corporation will post 12.84 earnings per share for the current fiscal year.

Union Pacific Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Friday, May 29th were issued a $1.38 dividend. This represents a $5.52 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date was Friday, May 29th. Union Pacific’s payout ratio is presently 44.70%.

About Union Pacific

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.