Union Pacific (NYSE:UNP) Sets New 12-Month High – Should You Buy?

Shares of Union Pacific Corporation (NYSE:UNP) reached a new 52-week high during mid-day trading on Wednesday . The company traded as high as $276.50 and last traded at $277.67, with a volume of 718240 shares traded. The stock had previously closed at $271.10.

Key Stories Impacting Union Pacific

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

• Positive Sentiment: The STB formally accepted Union Pacific’s revised merger application with Norfolk Southern, which keeps the deal alive and is a necessary step toward creating a coast-to-coast rail network. Article Title
• Positive Sentiment: Several reports noted that if the merger advances, divestitures of rail lines, yards, or equipment could create opportunities for other infrastructure owners and may support broader strategic value around the transaction. Article Title
• Neutral Sentiment: Comments from Washington suggesting a possible government stake in a large railroad merger have added another layer of uncertainty, but no specific company was named. Article Title
• Negative Sentiment: The STB paused the formal review and required supplemental disclosures by July 27, signaling that the merger faces more scrutiny and could take longer to approve. Article Title
• Negative Sentiment: CN publicly backed the regulator’s pause, arguing Union Pacific and Norfolk Southern still have not made a strong enough case for the merger, which highlights ongoing opposition from competitors and other stakeholders. Article Title

Analyst Upgrades and Downgrades

UNP has been the subject of several analyst reports. Sanford C. Bernstein increased their target price on shares of Union Pacific from $289.00 to $293.00 and gave the company an “outperform” rating in a report on Tuesday, March 31st. Benchmark increased their target price on shares of Union Pacific from $275.00 to $300.00 and gave the company a “buy” rating in a report on Friday, April 24th. Royal Bank Of Canada restated an “outperform” rating and set a $289.00 price target (up from $273.00) on shares of Union Pacific in a research report on Friday, April 24th. Evercore reiterated an “outperform” rating and set a $277.00 target price on shares of Union Pacific in a research report on Friday, April 24th. Finally, Raymond James Financial set a $310.00 target price on shares of Union Pacific in a research report on Friday, April 24th. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and eight have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Union Pacific has a consensus rating of “Moderate Buy” and a consensus target price of $280.47.

Union Pacific Price Performance

The stock has a market cap of $157.70 billion, a P/E ratio of 21.67, a PEG ratio of 2.97 and a beta of 0.99. The firm’s fifty day moving average price is $256.04 and its 200-day moving average price is $245.44. The company has a quick ratio of 0.73, a current ratio of 0.92 and a debt-to-equity ratio of 1.53.

Union Pacific (NYSE:UNP) last released its earnings results on Thursday, April 23rd. The railroad operator reported $2.93 earnings per share for the quarter, topping analysts’ consensus estimates of $2.86 by $0.07. The business had revenue of $6.22 billion for the quarter, compared to analyst estimates of $6.12 billion. Union Pacific had a return on equity of 39.58% and a net margin of 29.20%.The business’s revenue was up 3.2% compared to the same quarter last year. During the same quarter last year, the firm posted $2.70 earnings per share. Analysts forecast that Union Pacific Corporation will post 12.53 earnings per share for the current year.

Union Pacific Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Friday, May 29th will be given a dividend of $1.38 per share. This represents a $5.52 annualized dividend and a dividend yield of 2.1%. The ex-dividend date is Friday, May 29th. Union Pacific’s payout ratio is presently 45.47%.

Insider Buying and Selling

In related news, CFO Jennifer L. Hamann sold 2,000 shares of the business’s stock in a transaction that occurred on Friday, April 24th. The stock was sold at an average price of $274.70, for a total transaction of $549,400.00. Following the completion of the sale, the chief financial officer directly owned 114,642 shares in the company, valued at approximately $31,492,157.40. The trade was a 1.71% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Kenyatta G. Rocker sold 27,387 shares of the business’s stock in a transaction on Friday, April 24th. The stock was sold at an average price of $271.76, for a total value of $7,442,691.12. Following the transaction, the executive vice president directly owned 61,102 shares in the company, valued at $16,605,079.52. This trade represents a 30.95% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 31,386 shares of company stock worth $8,461,716. 0.22% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Union Pacific

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Tucker Asset Management LLC acquired a new position in shares of Union Pacific in the 4th quarter valued at $25,000. SWAN Capital LLC lifted its stake in shares of Union Pacific by 2,575.0% in the 4th quarter. SWAN Capital LLC now owns 107 shares of the railroad operator’s stock valued at $25,000 after purchasing an additional 103 shares during the last quarter. Rachor Investment Advisory Services LLC acquired a new position in shares of Union Pacific in the 4th quarter valued at $25,000. Caitlin John LLC acquired a new position in shares of Union Pacific in the 3rd quarter valued at $27,000. Finally, Saranac Partners Ltd acquired a new position in shares of Union Pacific in the 3rd quarter valued at $27,000. Institutional investors and hedge funds own 80.38% of the company’s stock.

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.