Union Pacific Corporation (NYSE: UNP) stock fell -1.28% on Friday to $209.17 against a previous-day closing price of $211.89. With 2.5 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.49 million shares. During the session, the Railroads company that operates in wider Industrials sector, reached to the highest price of $212.51 whereas the lowest price it dropped to was $208.84. The 52-week range on UNP shows that it touched its highest point at $278.94 and its lowest point at $195.93 during that stretch. It currently has a 1-year price target of $242.62. With its current market cap of 134.54 billion, UNP has annualized dividend of $5.20 while the current yield stands at 2.49%. Beta for the stock currently stands at 1.14.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of UNP was down-trending over the past week, with a drop of -4.21%, but this was down by -11.98% over a month. Three-month performance dropped to -0.28% while six-month performance fell -21.86%. The stock gained 5.60% in the past year, while it has lost -16.97% so far this year. A look at the trailing 12-month EPS for UNP yields 10.74 with Next year EPS estimates of 12.63. For the next quarter, that number is 3.07. This implies an EPS growth rate of 26.40% for this year and 7.96% for next year. EPS is expected to grow by 14.68% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 14.50%.
Float and Shares Shorts:
At present, 625.60 million UNP shares are outstanding with a float of 622.78 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.56 million, which was 0.89% higher than short shares on Jun 14, 2022. In addition to Mr. Lance M. Fritz as the firm’s Chief Exec. Officer, Chairman, and Pres, Ms. Jennifer L. Hamann serves as its Exec. VP and Chief Financial Officer.
Through their ownership of 81.33% of UNP’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 5.72% of UNP, in contrast to 40.95% held by mutual funds. Shares owned by individuals account for 40.03%. As the largest shareholder in UNP with 8.16% of the stake, The Vanguard Group, Inc. holds 50,965,217 shares worth 50,965,217. A second-largest stockholder of UNP, BlackRock Fund Advisors, holds 28,252,461 shares, controlling over 4.52% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in UNP, holding 27,725,657 shares or 4.44% stake. With a 2.98% stake in UNP, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 18,590,018 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.24% of UNP stock, is the second-largest Mutual Fund holder. It holds 14,015,850 shares valued at 3.15 billion. Fidelity 500 Index Fund holds 1.08% of the stake in UNP, owning 6,743,342 shares worth 1.51 billion.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for UNP since 28 analysts follow the stock currently. There are 12 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 13 believe that the stock is worth HOLDING, 3 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With UNP analysts setting a high price target of $272.00 and a low target of $207.00, the average target price over the next 12 months is $242.88. Based on these targets, UNP could surge 30.04% to reach the target high and fall by -1.04% to reach the target low. Reaching the average price target will result in a growth of 16.12% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. UNP will report FY 2022 earnings on 01/19/2023. Analysts have provided yearly estimates in a range of $12.09 being high and $11.14 being low. For UNP, this leads to a yearly average estimate of $11.67. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Union Pacific Corporation surprised analysts by $0.09 when it reported $2.93 EPS against a consensus estimate of $2.84. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is $3.36 and the low estimate is $2.87. The average estimate for the next quarter is thus $3.08.
Summary of Insider Activity:
Insiders traded UNP stock several times over the past three months with 11 Buys and 0 Sells. In these transactions, 109 shares were bought while 0 shares were sold. The number of buy transactions has increased to 107 while that of sell transactions has risen to 59 over the past year. The total number of shares bought during that period was 515,726 while 405,233 shares were sold.