Investors Buy Large Volume of Call Options on Union Pacific (NYSE:UNP)

Union Pacific Corporation (NYSE:UNP) was the target of some unusual options trading on Monday. Investors purchased 10,816 call options on the stock. This represents an increase of 44% compared to the typical daily volume of 7,529 call options.

Analysts Set New Price Targets

UNP has been the topic of several recent research reports. Benchmark upped their price target on Union Pacific from $325.00 to $335.00 and gave the stock a “buy” rating in a report on Friday. BMO Capital Markets reiterated a “market perform” rating and issued a $320.00 price objective (up from $285.00) on shares of Union Pacific in a research note on Friday. Weiss Ratings raised Union Pacific from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday. Citizens Jmp assumed coverage on Union Pacific in a research report on Wednesday, July 15th. They set an “outperform” rating and a $350.00 price objective for the company. Finally, Sanford C. Bernstein upped their target price on shares of Union Pacific from $289.00 to $293.00 and gave the stock an “outperform” rating in a research note on Tuesday, March 31st. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat, Union Pacific presently has an average rating of “Moderate Buy” and an average target price of $320.89.

Union Pacific Trading Down 2.6%

NYSE UNP opened at $299.47 on Tuesday. The firm’s fifty day moving average is $275.61 and its two-hundred day moving average is $258.97. The company has a debt-to-equity ratio of 1.40, a quick ratio of 0.82 and a current ratio of 0.99. The firm has a market cap of $177.91 billion, a PE ratio of 24.25, a P/E/G ratio of 3.16 and a beta of 0.96. Union Pacific has a one year low of $210.84 and a one year high of $315.99.

Union Pacific (NYSE:UNP) last posted its quarterly earnings data on Thursday, July 23rd. The railroad operator reported $3.41 earnings per share for the quarter, topping analysts’ consensus estimates of $3.26 by $0.15. Union Pacific had a return on equity of 38.46% and a net margin of 28.85%.The company had revenue of $6.86 billion during the quarter, compared to analysts’ expectations of $6.72 billion. During the same period last year, the firm earned $3.03 EPS. The firm’s revenue for the quarter was up 11.5% on a year-over-year basis. Analysts expect that Union Pacific will post 12.84 earnings per share for the current year.

Union Pacific Announces Dividend

The business 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. This represents a $5.52 annualized dividend and a dividend yield of 1.8%. The ex-dividend date was Friday, May 29th. Union Pacific’s dividend payout ratio is 44.70%.

Key Stories Impacting Union Pacific

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

• Positive Sentiment: Merger application strengthened: Union Pacific and Norfolk Southern submitted supplemental information to the Surface Transportation Board, adding customer protections including expanded gateway pricing and assurances aimed at delivering faster, more reliable service. The commitments could improve the merger’s regulatory prospects, although approval remains pending. Union Pacific, Norfolk Southern File Supplemental Information to STB on Merger
• Positive Sentiment: Canadian National support reduces opposition risk: Canadian National reportedly will not challenge the Union Pacific–Norfolk Southern transaction under a revised arrangement that would give it access to certain shipper sites. This may remove a potential obstacle before the STB review. Canadian National won’t fight UP-NS merger under new deal
• Positive Sentiment: More bullish valuation outlook: Robert W. Baird raised its UNP price target to $344 from $311 and reiterated an “outperform” rating. Other recent coverage remains broadly favorable, including a consensus “moderate buy” recommendation and a higher $335 target from Benchmark.
• Positive Sentiment: Standalone operating case remains constructive: Recent analysis highlights service-led growth as a potential driver of improved margins and earnings. Union Pacific’s latest quarterly results also exceeded expectations, with revenue growth and earnings above consensus.
• Neutral Sentiment: Options activity signals interest, not certainty: Investors purchased approximately 10,816 UNP call options, about 44% above average volume. The activity may indicate bullish positioning but does not guarantee near-term gains.
• Negative Sentiment: Merger execution remains a risk: The proposed transaction is still subject to STB approval, and the added customer assurances could underscore the regulatory and integration challenges involved. Investors may also be taking profits after UNP approached its 52-week high.

Insider Activity

In related news, EVP Eric J. Gehringer sold 2,991 shares of Union Pacific stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $263.96, for a total value of $789,504.36. Following the completion of the transaction, the executive vice president directly owned 43,012 shares in the company, valued at approximately $11,353,447.52. This trade represents a 6.50% decrease in their ownership of the stock. 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.

Hedge Funds Weigh In On Union Pacific

A number of hedge funds and other institutional investors have recently bought and sold shares of UNP. Acadian Asset Management LLC raised its stake in shares of Union Pacific by 40.4% during the 1st quarter. Acadian Asset Management LLC now owns 2,312 shares of the railroad operator’s stock worth $546,000 after buying an additional 665 shares in the last quarter. Schnieders Capital Management LLC. grew its holdings in Union Pacific by 0.5% during the second quarter. Schnieders Capital Management LLC. now owns 20,606 shares of the railroad operator’s stock worth $4,741,000 after acquiring an additional 102 shares during the period. Main Street Financial Solutions LLC grew its holdings in Union Pacific by 1.6% during the second quarter. Main Street Financial Solutions LLC now owns 3,733 shares of the railroad operator’s stock worth $859,000 after acquiring an additional 58 shares during the period. HUB Investment Partners LLC raised its position in Union Pacific by 10.0% in the second quarter. HUB Investment Partners LLC now owns 6,091 shares of the railroad operator’s stock worth $1,401,000 after acquiring an additional 554 shares in the last quarter. Finally, Alliancebernstein L.P. raised its position in Union Pacific by 7.4% in the second quarter. Alliancebernstein L.P. now owns 1,528,426 shares of the railroad operator’s stock worth $351,660,000 after acquiring an additional 105,664 shares in the last quarter. 80.38% of the stock is currently owned by hedge funds and other institutional investors.

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.