Union Pacific (NYSE:UNP) Shares Gap Up Following Earnings Beat

Shares of Union Pacific Corporation (NYSE:UNP) gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $249.40, but opened at $262.76. Union Pacific shares last traded at $261.7870, with a volume of 470,452 shares.

The railroad operator reported $2.93 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.86 by $0.07. The business had revenue of $6.22 billion for the quarter, compared to analysts’ expectations of $6.12 billion. Union Pacific had a return on equity of 40.89% and a net margin of 29.12%.The company’s revenue for the quarter was up 3.2% on a year-over-year basis. During the same period in the prior year, the firm earned $2.70 EPS.

Union Pacific Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Friday, February 27th were issued a dividend of $1.38 per share. This represents a $5.52 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend was Friday, February 27th. Union Pacific’s dividend payout ratio is 46.12%.

Trending Headlines about Union Pacific

Here are the key news stories impacting Union Pacific this week:

• Positive Sentiment: Q1 beat and strong results — UNP posted adjusted EPS of $2.93 (vs. consensus ~ $2.84) and revenue of $6.22B, with net income and margins improving year‑over‑year; results included a small merger-related charge. This upside is the primary near-term bull case for the stock. Read More.
• Positive Sentiment: Pricing power and efficiency gains — management said stronger pricing, fuel surcharge dynamics and productivity improvements offset cost pressure, lifting profitability and investor confidence in operating execution. Read More.
• Positive Sentiment: Merger momentum — management reiterated its pursuit of the proposed Norfolk Southern acquisition and signaled a revised regulatory filing is imminent, which revived deal optimism and likely contributed to sector re‑rating. Read More.
• Neutral Sentiment: Guidance affirmed — UNP affirmed its full‑year earnings outlook after the quarter, removing some uncertainty around forward estimates but leaving results sensitive to volume/mix and costs. Read More.
• Negative Sentiment: Fuel-cost headwind — management warned that rising fuel prices will pressure margins, a risk that could limit margin expansion if fuel or other input costs continue to climb. Read More.

Analyst Ratings Changes

UNP has been the topic of several recent research reports. Benchmark reaffirmed a “buy” rating and set a $275.00 price objective (up from $260.00) on shares of Union Pacific in a report on Friday, April 17th. The Goldman Sachs Group reaffirmed a “neutral” rating and set a $267.00 price objective on shares of Union Pacific in a report on Tuesday, January 27th. Weiss Ratings raised Union Pacific from a “buy (b-)” rating to a “buy (b)” rating in a report on Tuesday. Susquehanna reaffirmed a “buy” rating on shares of Union Pacific in a report on Monday, January 19th. Finally, Sanford C. Bernstein upped their price objective on Union Pacific from $289.00 to $293.00 and gave the stock an “outperform” rating in a report on Tuesday, March 31st. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and eight have given a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $267.48.

Insiders Place Their Bets

In related news, EVP Eric J. Gehringer sold 1,999 shares of the stock in a transaction on Friday, March 20th. The stock was sold at an average price of $234.93, for a total transaction of $469,625.07. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.22% of the company’s stock.

Institutional Trading of Union Pacific

Several hedge funds and other institutional investors have recently bought and sold shares of UNP. Capital World Investors raised its holdings in Union Pacific by 92.1% during the 4th quarter. Capital World Investors now owns 20,136,349 shares of the railroad operator’s stock valued at $4,658,142,000 after buying an additional 9,655,306 shares during the period. Norges Bank purchased a new stake in Union Pacific during the 4th quarter valued at $1,779,907,000. Capital Research Global Investors raised its holdings in Union Pacific by 95.0% during the 3rd quarter. Capital Research Global Investors now owns 8,713,196 shares of the railroad operator’s stock valued at $2,059,538,000 after buying an additional 4,244,226 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Union Pacific by 72.7% during the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,177,002 shares of the railroad operator’s stock valued at $2,169,168,000 after buying an additional 3,861,636 shares during the period. Finally, EdgePoint Investment Group Inc. purchased a new stake in Union Pacific during the 3rd quarter valued at $408,592,000. Hedge funds and other institutional investors own 80.38% of the company’s stock.

Union Pacific Stock Up 8.7%

The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.75 and a current ratio of 0.91. The company has a fifty day moving average of $251.59 and a two-hundred day moving average of $238.07. The company has a market cap of $160.86 billion, a PE ratio of 22.65, a price-to-earnings-growth ratio of 2.76 and a beta of 0.96.

Union Pacific Company Profile

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.