Sovran Advisors Acquires Stake in Union Pacific Corporation
Sovran Advisors LLC has acquired a new stake in Union Pacific Corporation (NYSE: UNP) during the second quarter of 2024. The investment firm purchased 1,003 shares of the railroad operator’s stock, valued at approximately $237,000. This move comes amid a trend where various hedge funds and institutional investors have adjusted their positions in Union Pacific.
LGT Group Foundation increased its holdings in Union Pacific by 9.7% during the first quarter, now owning 5,398 shares worth $1.275 million after acquiring an additional 477 shares. Similarly, Nuveen LLC established a new position in Union Pacific valued at around $988.8 million. Other notable investors include SlateStone Wealth LLC, which raised its position by 6.2% to 13,264 shares worth $3.133 million, and Meadow Creek Wealth Advisors LLC, which boosted its stake by 10.9% to 3,666 shares, valued at $866,000. GAMMA Investing LLC also increased its holdings by 16.8%, now owning 10,545 shares worth $2.491 million. Collectively, institutional investors hold 80.38% of Union Pacific’s stock.
Analysts Provide Insights on Union Pacific
Several research analysts have recently commented on Union Pacific shares. Susquehanna reduced its price target from $260.00 to $257.00 while maintaining a “positive” rating. Conversely, Jefferies Financial Group upgraded the stock from “hold” to “buy,” increasing its price objective from $250.00 to $285.00. Loop Capital also upgraded its rating from “sell” to “hold,” with a new price target set at $227.00. Wells Fargo & Company raised its target from $250.00 to $260.00, giving the stock an “overweight” rating. Raymond James Financial reiterated a “strong-buy” rating.
Currently, the consensus shows one analyst giving a “Strong Buy” rating, fifteen assigning “Buy,” and ten rating it as “Hold.” According to MarketBeat, Union Pacific stock holds an average rating of “Moderate Buy” with a price target averaging $259.38.
Union Pacific’s Stock Performance and Financial Results
On Friday, Union Pacific’s stock opened at $220.86, reflecting a modest increase of 0.2%. The company maintains a debt-to-equity ratio of 1.86, with a quick ratio of 0.53 and a current ratio of 0.65. The stock has a 50-day simple moving average of $222.66 and a 200-day simple moving average of $225.01. Over the past year, Union Pacific’s stock hit a low of $204.66 and a high of $256.84. The company boasts a market capitalization of $130.98 billion, a price-to-earnings ratio of 19.19, and a beta of 1.03.
Union Pacific recently reported $3.03 earnings per share (EPS) for the second quarter of 2024, surpassing analysts’ estimates of $2.84 by $0.19. The company generated $6.15 billion in revenue, exceeding the expected $6.09 billion. Year-on-year, revenue increased by 2.4%, with a return on equity of 41.73% and a net margin of 28.43%. Analysts predict Union Pacific will report $11.99 EPS for the current fiscal year.
In addition, Union Pacific has declared a quarterly dividend of $1.38 per share, set to be paid on September 30, 2024, to stockholders of record on August 29, 2024. This reflects an annualized dividend of $5.52 with a yield of 2.5%, marking an increase from the previous quarterly dividend of $1.34. The ex-dividend date is also August 29, 2024. Union Pacific’s dividend payout ratio currently stands at 47.96%.
Union Pacific Corporation, through its subsidiary Union Pacific Railroad Company, operates within the railroad industry across the United States, providing essential transportation services for a wide range of products including agricultural goods, industrial chemicals, and automobiles.
