On October 11, 2023, it was reported that IFM Investors Pty Ltd had increased its holdings in Union Pacific Co. (NYSE:UNP) by 38.3% during the second quarter of the year. According to the filing with the Securities & Exchange Commission, the institutional investor now owned 192,995 shares of the railroad operator’s stock, purchasing an additional 53,424 shares over the quarter. The value of IFM Investors Pty Ltd’s holdings in Union Pacific stood at $39,491,000 at the end of this reporting period.
Several equities research analysts have also provided insights into Union Pacific stock. Wells Fargo & Company, for instance, raised their price objective on the shares from $200.00 to $245.00 in a research note on July 27th. Conversely, Bank of America decreased their price objective from $265.00 to $257.00 and maintained a “buy” rating on the stock in a separate research note on September 25th. Barclays similarly reduced their target price from $285.00 to $275.00 on October 4th while Stifel Nicolaus downgraded their price objective from $233.00 to $232.00 and set a “hold” rating for Union Pacific on October 3rd. Susquehanna also decreased their target price from $240.00 to $220.00 and rated the stock as “neutral” on October 3rd.
In summary, twelve equities research analysts have given a hold rating for Union Pacific stock, fourteen have issued a buy rating, while one has provided it with a strong buy rating as well. Bloomberg reports that presently the stock has an average rating of “Moderate Buy” and a consensus target price of $233.62.
During trading on Wednesday, UNP stock traded up by $1.19 and reached a value of $207.54. A total of 201,287 shares were exchanged, compared to an average volume of 2,861,592. The firm’s 50-day moving average is $216.74 and its 200-day moving average stands at $207.61. Union Pacific Co. has a market capitalization of $126.49 billion, a P/E ratio of 18.83, a price-to-earnings-growth ratio of 1.97, and a beta of 1.12. The company also has a current ratio of 0.71 and a quick ratio of 0.57, while its debt-to-equity ratio amounts to 2.39.
Over the past twelve months, Union Pacific stock has ranged from a low of $183.69 to a high of $240.48.
This information provides investors with valuable insights into IFM Investors Pty Ltd’s increasing stake in Union Pacific Co., as well as the analysis provided by various equities research analysts regarding the stock’s performance and future outlooks based on target prices and ratings assigned to it by these experts.
Institutional Investors Increases Stake in Union Pacific while Mixed Expert Opinions Persist
Institutional investors are showing increasing interest in Union Pacific (NYSE:UNP), as evidenced by recent transactions involving the company’s shares. Bank Julius Baer & Co. Ltd Zurich, for example, boosted its stake in Union Pacific by an astonishing 104,263.0% during the second quarter of this year. This allowed the bank to accumulate a total of 341,697,058 shares valued at $69,918,052,000.
Moneta Group Investment Advisors LLC also raised its holdings in Union Pacific dramatically. By investing in an additional 13,682,419 shares during the fourth quarter, Moneta Group now owns a total of 13,697,556 shares worth $2,836,353,000.
Furthermore, Geode Capital Management LLC increased its position in Union Pacific by 2% during the first quarter of this year. The company now owns 11,164,765 shares with a value of $2.24 billion after acquiring an additional 223,827 shares.
Ameriprise Financial Inc., not to be left behind by their institutional counterparts, grew their holdings of Union Pacific by 10.1%. They purchased an extra 864,127 shares during the first quarter bringing their total ownership to 9,400,232 valued at $1.89 billion.
Morgan Stanley is another institutional investor that has recently shown confidence in Union Pacific. With a growth rate of 10.9%, they now possess a total of 8,983932 shares worth $1.86 billion.
All these investments combined demonstrate a significant degree of trust and belief in the company’s potential for growth and profitability.
In related news within Union Pacific itself – CFO Jennifer L. Hamann recently sold 1 ,000 shares on August 23rd for around $222.83 per share amounting to a total transaction value of $222 ,830 . Following this sale Hansen now holds 9,378 shares worth $22,144 ,399.74 .
It is important to note that company insiders own 0.30% of the entire stock.
Various equities analysts have recently issued reports regarding the future prospects and performance of Union Pacific. Some have increased their target price for the stock while others have decreased it. Wells Fargo & Company raised their price target from $200 to $245, while Bank of America lowered theirs from $265 to $257.
Barclays also reduced their target price on Union Pacific, from $285 to $275. Meanwhile, Stifel Nicolaus dropped Union Pacific’s target price from $233 to $232 and assigned a “hold” rating on the stock. Susquehanna also decreased their target price from $240 to $220 and gave a “neutral” rating for the company.
Overall, there seems to be mixed opinions about Union Pacific’s future prospects among financial experts, with twelve analysts holding a hold rating, fourteen issuing a buy rating and one providing a strong buy rating. The average analyst consensus target price for Union Pacific is currently estimated at $233.62 per share according to Bloomberg.
When it comes to financial performance, Union Pacific released its earnings results on July 26th which showed an earnings per share figure of $2.57 for the quarter – falling short of analysts’ consensus estimates by ($0.18). Despite this slight miss, Union Pacific achieved a return on equity of 55.03% and maintained a net margin of 27.18%. Revenues for the quarter stood at $5.96 billion compared to analyst predictions of $6 .09 billion – representing a decrease of 4 .9% when compared year-on-year.
The railway operator has paid close attention to rewarding its shareholders by announcing its decision to declare a quarterly dividend paid out on September 29th. Investors who held shares as of August 31st will receive a $1.30 dividend per share, equaling an annualized dividend rate of $5.20; producing a yield of 2.51% based on the stock’s current price.
Ultimately, despite some mixed expert opinions and lesser-than-anticipated quarterly earnings reported by Union Pacific, investors still seem to exhibit confidence in the company’s long-term success and its potential to deliver returns.