Union Pacific (NYSE:UNP) Downgraded to “Hold” at StockNews.com

StockNews.com downgraded shares of Union Pacific (NYSE:UNP) from a buy rating to a hold rating in a research note issued to investors on Tuesday morning.

Several other brokerages have also recently weighed in on UNP. TD Cowen decreased their price target on Union Pacific from $259.00 to $255.00 and set a buy rating on the stock in a research report on Friday, July 26th. Benchmark reaffirmed a buy rating and set a $266.00 target price on shares of Union Pacific in a report on Monday, July 29th. Daiwa America cut shares of Union Pacific from a moderate buy rating to a hold rating in a research note on Wednesday, September 4th. Bank of America reduced their price target on shares of Union Pacific from $273.00 to $270.00 and set a buy rating for the company in a research report on Tuesday, September 24th. Finally, Evercore ISI downgraded Union Pacific from an outperform rating to an inline rating and lowered their price objective for the stock from $254.00 to $247.00 in a research report on Wednesday, September 25th. Eight equities research analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of Moderate Buy and a consensus price target of $258.79.

Union Pacific Stock Performance

Shares of UNP stock opened at $245.50 on Tuesday. The firm’s 50 day moving average is $245.99 and its 200 day moving average is $238.83. The stock has a market capitalization of $149.56 billion, a P/E ratio of 23.43, a PEG ratio of 2.25 and a beta of 1.05. Union Pacific has a 12 month low of $199.33 and a 12 month high of $258.66. The company has a current ratio of 1.05, a quick ratio of 0.86 and a debt-to-equity ratio of 1.89.

Union Pacific (NYSE:UNP) last posted its earnings results on Thursday, July 25th. The railroad operator reported $2.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.71 by $0.03. The firm had revenue of $6.01 billion for the quarter, compared to the consensus estimate of $6.05 billion. Union Pacific had a return on equity of 42.62% and a net margin of 26.90%. During the same quarter in the prior year, the business posted $2.57 earnings per share. The business’s quarterly revenue was up .7% on a year-over-year basis. On average, sell-side analysts anticipate that Union Pacific will post 11.1 earnings per share for the current year.

Union Pacific Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, September 30th. Stockholders of record on Friday, August 30th were given a $1.34 dividend. The ex-dividend date of this dividend was Friday, August 30th. This represents a $5.36 annualized dividend and a dividend yield of 2.18%. This is a positive change from Union Pacific’s previous quarterly dividend of $1.30. Union Pacific’s dividend payout ratio is currently 51.15%.

Insider Activity

In other Union Pacific news, President Elizabeth F. Whited sold 3,552 shares of the stock in a transaction on Tuesday, July 30th. The stock was sold at an average price of $246.59, for a total value of $875,887.68. Following the completion of the transaction, the president now owns 64,945 shares in the company, valued at $16,014,787.55. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 0.28% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of UNP. Capital Research Global Investors boosted its position in shares of Union Pacific by 23.1% in the 4th quarter. Capital Research Global Investors now owns 6,851,767 shares of the railroad operator’s stock worth $1,682,931,000 after purchasing an additional 1,285,144 shares in the last quarter. Marshall Wace LLP raised its stake in Union Pacific by 272.3% during the second quarter. Marshall Wace LLP now owns 1,678,108 shares of the railroad operator’s stock valued at $379,689,000 after buying an additional 1,227,318 shares during the last quarter. Capital World Investors boosted its holdings in Union Pacific by 35.3% in the first quarter. Capital World Investors now owns 4,118,477 shares of the railroad operator’s stock worth $1,012,857,000 after acquiring an additional 1,073,625 shares in the last quarter. Junto Capital Management LP purchased a new stake in shares of Union Pacific in the fourth quarter worth $123,297,000. Finally, Bridges Investment Management Inc. increased its holdings in shares of Union Pacific by 186.4% during the second quarter. Bridges Investment Management Inc. now owns 704,769 shares of the railroad operator’s stock valued at $159,461,000 after acquiring an additional 458,664 shares in the last quarter. 80.38% of the stock is currently owned by institutional investors.

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.