Union Pacific (NYSE:UNP) Shares Gap Up After Better-Than-Expected Earnings

Union Pacific Co. (NYSE:UNP)’s share price gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $235.80, but opened at $246.65. Union Pacific shares last traded at $247.11, with a volume of 962,652 shares traded.

The railroad operator reported $2.91 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.76 by $0.15. Union Pacific had a return on equity of 41.79% and a net margin of 27.33%. During the same period last year, the company posted $2.71 EPS.

Union Pacific Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, December 30th. Investors of record on Monday, December 9th were paid a dividend of $1.34 per share. The ex-dividend date of this dividend was Monday, December 9th. This represents a $5.36 annualized dividend and a yield of 2.17%. Union Pacific’s dividend payout ratio is currently 49.22%.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the company. Wells Fargo & Company decreased their price objective on Union Pacific from $267.00 to $265.00 and set an “overweight” rating on the stock in a report on Tuesday, January 7th. Susquehanna dropped their target price on Union Pacific from $260.00 to $255.00 and set a “neutral” rating on the stock in a report on Friday, October 25th. TD Cowen cut their target price on Union Pacific from $255.00 to $252.00 and set a “buy” rating on the stock in a research report on Friday, October 25th. Barclays lifted their price target on Union Pacific from $275.00 to $285.00 and gave the stock an “overweight” rating in a research note on Wednesday, November 13th. Finally, Royal Bank of Canada decreased their price target on shares of Union Pacific from $288.00 to $283.00 and set an “outperform” rating for the company in a report on Friday, October 25th. Nine research analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $259.35.

Institutional Investors Weigh In On Union Pacific

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. State Street Corp increased its position in Union Pacific by 0.9% during the third quarter. State Street Corp now owns 24,788,337 shares of the railroad operator’s stock worth $6,109,829,000 after buying an additional 217,780 shares during the last quarter. Geode Capital Management LLC boosted its position in Union Pacific by 1.4% during the third quarter. Geode Capital Management LLC now owns 12,813,686 shares of the railroad operator’s stock worth $3,146,451,000 after purchasing an additional 182,620 shares during the period. Ameriprise Financial Inc. increased its holdings in shares of Union Pacific by 1.3% in the second quarter. Ameriprise Financial Inc. now owns 8,312,154 shares of the railroad operator’s stock valued at $1,880,701,000 after purchasing an additional 106,996 shares during the last quarter. Franklin Resources Inc. raised its position in shares of Union Pacific by 9.3% in the third quarter. Franklin Resources Inc. now owns 7,322,450 shares of the railroad operator’s stock valued at $1,795,993,000 after purchasing an additional 625,492 shares during the period. Finally, Fisher Asset Management LLC boosted its holdings in shares of Union Pacific by 2.3% during the 3rd quarter. Fisher Asset Management LLC now owns 6,285,585 shares of the railroad operator’s stock worth $1,549,271,000 after buying an additional 143,896 shares during the period. Institutional investors own 80.38% of the company’s stock.

Union Pacific Stock Performance

The stock’s 50 day moving average is $233.54 and its 200 day moving average is $239.16. The company has a current ratio of 0.77, a quick ratio of 0.63 and a debt-to-equity ratio of 1.79. The firm has a market cap of $149.70 billion, a price-to-earnings ratio of 22.70, a price-to-earnings-growth ratio of 2.13 and a beta of 1.06.

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.