Union Pacific (NYSE:UNP) Reaches New 12-Month High – Should You Buy?

Union Pacific Corporation (NYSE:UNP) hit a new 52-week high on Monday . The company traded as high as $303.49 and last traded at $301.3430, with a volume of 1905 shares traded. The stock had previously closed at $301.75.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on UNP shares. BMO Capital Markets reiterated a “market perform” rating and issued a $285.00 target price (up from $278.00) on shares of Union Pacific in a research note on Friday, April 24th. Susquehanna increased their price target on shares of Union Pacific from $305.00 to $333.00 and gave the company a “positive” rating in a research report on Tuesday, July 14th. UBS Group reissued a “neutral” rating and set a $274.00 price target (up from $253.00) on shares of Union Pacific in a research report on Friday, April 24th. Sanford C. Bernstein raised their price target on shares of Union Pacific from $289.00 to $293.00 and gave the company an “outperform” rating in a report on Tuesday, March 31st. Finally, Citigroup started coverage on shares of Union Pacific in a research report on Wednesday, July 15th. They issued an “outperform” rating on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and seven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $299.11.

Union Pacific Price Performance

The company has a current ratio of 0.92, a quick ratio of 0.73 and a debt-to-equity ratio of 1.53. The stock has a market cap of $174.00 billion, a price-to-earnings ratio of 24.14, a PEG ratio of 3.10 and a beta of 0.96. The stock has a 50-day moving average price of $273.12 and a two-hundred day moving average price of $257.03.

Union Pacific (NYSE:UNP) last announced its earnings results on Thursday, April 23rd. The railroad operator reported $2.93 earnings per share (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 company had revenue of $6.22 billion for the quarter, compared to analyst estimates of $6.12 billion. During the same period in the prior year, the company posted $2.70 EPS. The firm’s quarterly revenue was up 3.2% compared to the same quarter last year. As a group, equities research analysts forecast that Union Pacific Corporation will post 12.62 EPS for the current year.

Union Pacific Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Friday, May 29th were paid a dividend of $1.38 per share. The ex-dividend date was Friday, May 29th. This represents a $5.52 dividend on an annualized basis and a dividend yield of 1.9%. Union Pacific’s payout ratio is presently 45.47%.

Insider Activity

In related news, EVP Eric J. Gehringer sold 2,991 shares of Union Pacific stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $263.96, for a total value of $789,504.36. Following the completion of the sale, the executive vice president directly owned 43,012 shares in the company, valued at $11,353,447.52. This trade represents a 6.50% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Kenyatta G. Rocker sold 27,387 shares of the business’s stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $271.76, for a total transaction of $7,442,691.12. Following the sale, the executive vice president directly owned 61,102 shares in the company, valued at approximately $16,605,079.52. This represents a 30.95% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 32,378 shares of company stock worth $8,781,595 over the last 90 days. 0.22% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Rachor Investment Advisory Services LLC purchased a new stake in shares of Union Pacific during the fourth quarter valued at $25,000. Tucker Asset Management LLC purchased a new position in Union Pacific in the 4th quarter worth $25,000. SWAN Capital LLC raised its stake in Union Pacific by 2,575.0% in the 4th quarter. SWAN Capital LLC now owns 107 shares of the railroad operator’s stock worth $25,000 after acquiring an additional 103 shares during the last quarter. High Point Wealth Management LLC acquired a new stake in Union Pacific during the 4th quarter worth about $26,000. Finally, Cornerstone Financial Management LLC acquired a new stake in Union Pacific during the 4th quarter worth about $27,000. Hedge funds and other institutional investors own 80.38% of the company’s stock.

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.