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

Union Pacific Co. (NYSE:UNP) gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $241.35, but opened at $229.42. Union Pacific shares last traded at $230.34, with a volume of 911,051 shares traded.

The railroad operator reported $2.75 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.76 by ($0.01). Union Pacific had a net margin of 26.90% and a return on equity of 42.62%. The business had revenue of $6.09 billion during the quarter, compared to the consensus estimate of $6.14 billion. During the same quarter in the prior year, the company earned $2.51 EPS. Union Pacific’s quarterly revenue was up 2.5% on a year-over-year basis.

Wall Street Analyst Weigh In

Several equities analysts have commented on UNP shares. StockNews.com downgraded shares of Union Pacific from a “buy” rating to a “hold” rating in a report on Tuesday, October 1st. Wells Fargo & Company decreased their price target on shares of Union Pacific from $270.00 to $255.00 and set an “overweight” rating on the stock in a research note on Friday. Benchmark restated a “buy” rating and set a $266.00 price objective on shares of Union Pacific in a research report on Friday. Susquehanna decreased their target price on Union Pacific from $260.00 to $255.00 and set a “neutral” rating on the stock in a research report on Friday. Finally, Bank of America lowered their target price on Union Pacific from $273.00 to $270.00 and set a “buy” rating on the stock in a research note on Tuesday, September 24th. Nine research analysts have rated the stock with a hold rating, eleven have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat, Union Pacific currently has a consensus rating of “Moderate Buy” and a consensus target price of $259.15.

Insider Transactions at Union Pacific

In related news, President Elizabeth F. Whited sold 3,552 shares of Union Pacific stock in a transaction that occurred on Tuesday, July 30th. The shares were sold at an average price of $246.59, for a total value of $875,887.68. Following the transaction, the president now directly owns 64,945 shares of the company’s stock, valued at $16,014,787.55. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. 0.28% of the stock is currently owned by insiders.

Institutional Trading of Union Pacific

Several large investors have recently bought and sold shares of the business. Ameriprise Financial Inc. grew its stake in shares of Union Pacific by 1.3% during the second quarter. Ameriprise Financial Inc. now owns 8,312,154 shares of the railroad operator’s stock worth $1,880,701,000 after buying an additional 106,996 shares during the last quarter. Capital Research Global Investors grew its position in Union Pacific by 7.6% during the 1st quarter. Capital Research Global Investors now owns 7,370,752 shares of the railroad operator’s stock worth $1,812,689,000 after acquiring an additional 518,985 shares during the last quarter. Legal & General Group Plc grew its position in Union Pacific by 2.1% during the 2nd quarter. Legal & General Group Plc now owns 5,970,669 shares of the railroad operator’s stock worth $1,350,924,000 after acquiring an additional 124,571 shares during the last quarter. Clearbridge Investments LLC increased its holdings in Union Pacific by 5.7% in the 1st quarter. Clearbridge Investments LLC now owns 4,396,974 shares of the railroad operator’s stock worth $1,081,348,000 after purchasing an additional 237,083 shares in the last quarter. Finally, Canada Pension Plan Investment Board raised its position in Union Pacific by 8.3% in the second quarter. Canada Pension Plan Investment Board now owns 4,218,730 shares of the railroad operator’s stock valued at $954,530,000 after purchasing an additional 322,129 shares during the last quarter. 80.38% of the stock is owned by institutional investors and hedge funds.

Union Pacific Stock Down 0.2 %

The stock has a market capitalization of $140.30 billion, a price-to-earnings ratio of 21.62, a price-to-earnings-growth ratio of 2.23 and a beta of 1.05. The company has a quick ratio of 0.86, a current ratio of 1.05 and a debt-to-equity ratio of 1.89. The stock has a 50 day moving average price of $246.02 and a 200 day moving average price of $238.48.

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.