Union Pacific (NYSE:UNP) Shares Gap Down Following Weak Earnings

Union Pacific Co. (NYSE:UNP) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $219.78, but opened at $208.25. Union Pacific shares last traded at $212.34, with a volume of 942,433 shares.

The railroad operator reported $2.70 earnings per share for the quarter, missing analysts’ consensus estimates of $2.79 by ($0.09). Union Pacific had a net margin of 27.82% and a return on equity of 41.12%. The firm had revenue of $6.03 billion during the quarter, compared to analyst estimates of $6.11 billion.

Union Pacific Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 31st. Stockholders of record on Friday, February 28th were issued a $1.34 dividend. This represents a $5.36 annualized dividend and a dividend yield of 2.49%. The ex-dividend date was Friday, February 28th. Union Pacific’s dividend payout ratio (DPR) is currently 48.33%.

Wall Street Analyst Weigh In

UNP has been the topic of several recent research reports. Stifel Nicolaus lowered their price target on shares of Union Pacific from $270.00 to $248.00 and set a “buy” rating on the stock in a report on Monday, April 14th. Loop Capital downgraded Union Pacific from a “hold” rating to a “sell” rating and decreased their price target for the company from $265.00 to $200.00 in a report on Monday, February 3rd. BMO Capital Markets lifted their target price on shares of Union Pacific from $275.00 to $277.00 and gave the company an “outperform” rating in a report on Friday, January 24th. TD Cowen increased their price target on shares of Union Pacific from $245.00 to $258.00 and gave the stock a “buy” rating in a report on Friday, January 24th. Finally, Robert W. Baird lifted their price objective on shares of Union Pacific from $260.00 to $265.00 and gave the company an “outperform” rating in a report on Friday, January 24th. One analyst has rated the stock with a sell rating, seven have assigned a hold rating, fourteen have assigned a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Union Pacific currently has an average rating of “Moderate Buy” and an average target price of $257.50.

Insider Buying and Selling at Union Pacific

In other Union Pacific news, EVP Craig V. Richardson sold 6,495 shares of Union Pacific stock in a transaction dated Monday, January 27th. The stock was sold at an average price of $252.00, for a total value of $1,636,740.00. Following the completion of the transaction, the executive vice president now directly owns 26,319 shares of the company’s stock, valued at $6,632,388. The trade was a 19.79 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 0.28% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in UNP. Compass Financial Services Inc acquired a new position in shares of Union Pacific in the fourth quarter worth $25,000. Highline Wealth Partners LLC grew its stake in Union Pacific by 103.5% during the 1st quarter. Highline Wealth Partners LLC now owns 116 shares of the railroad operator’s stock worth $27,000 after purchasing an additional 59 shares in the last quarter. Synergy Asset Management LLC purchased a new stake in Union Pacific during the 4th quarter worth about $29,000. EnRich Financial Partners LLC acquired a new stake in Union Pacific in the 4th quarter valued at about $31,000. Finally, PrairieView Partners LLC purchased a new position in shares of Union Pacific in the 4th quarter valued at about $34,000. Hedge funds and other institutional investors own 80.38% of the company’s stock.

Union Pacific Stock Performance

The stock has a 50-day moving average price of $232.43 and a 200 day moving average price of $235.84. The company has a quick ratio of 0.62, a current ratio of 0.77 and a debt-to-equity ratio of 1.76. The firm has a market capitalization of $129.22 billion, a price-to-earnings ratio of 19.44, a P/E/G ratio of 2.15 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.