Its Stock Has Paid Off Big Time For Union Pacific Corporation

Union Pacific Corporation (NYSE: UNP) stock fell -3.31% on Tuesday to $203.18 against a previous-day closing price of $210.13. With 4.46 million shares changed hands, the volume of the stock remained heavier than its average volume of 3.0 million shares. During the session, the Railroads company that operates in wider Industrials sector, reached to the highest price of $235.20 whereas the lowest price it dropped to was $201.00. The 52-week range on UNP shows that it touched its highest point at $278.94 and its lowest point at $183.70 during that stretch. It currently has a 1-year price target of $223.07. With its current market cap of 123.02 billion, UNP has annualized dividend of $5.20 while the current yield stands at 2.56%. Beta for the stock currently stands at 1.13.

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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 -5.19%, but this was down by -2.51% over a month. Three-month performance surged to 6.64% while six-month performance fell -6.52%. The stock lost -17.52% in the past year, while it has lost -1.88% so far this year. A look at the trailing 12-month EPS for UNP yields 11.21 with Next year EPS estimates of 11.83. For the next quarter, that number is 2.78. This implies an EPS growth rate of 26.40% for this year and 3.10% for next year. EPS is expected to grow by 9.04% 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, 620.40 million UNP shares are outstanding with a float of 612.89 million shares on hand for trading. On Oct 13, 2022, short shares totaled 5.9 million, which was 0.96% higher than short shares on Sep 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.

Institutional Ownership:

Through their ownership of 81.61% of UNP’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 5.81% of UNP, in contrast to 40.39% held by mutual funds. Shares owned by individuals account for 40.10%. As the largest shareholder in UNP with 8.37% of the stake, The Vanguard Group, Inc. holds 51,474,715 shares worth 51,474,715. A second-largest stockholder of UNP, BlackRock Fund Advisors, holds 27,758,730 shares, controlling over 4.51% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in UNP, holding 27,415,889 shares or 4.46% stake. With a 3.04% stake in UNP, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 18,698,697 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.31% of UNP stock, is the second-largest Mutual Fund holder. It holds 14,211,282 shares valued at 2.94 billion. SPDR S&P 500 ETF Trust holds 1.11% of the stake in UNP, owning 6,801,027 shares worth 1.41 billion.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for UNP since 30 analysts follow the stock currently. There are 13 analysts who recommend BUY ratings, while 1 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 $245.00 and a low target of $179.00, the average target price over the next 12 months is $222.70. Based on these targets, UNP could surge 20.58% to reach the target high and fall by -11.9% to reach the target low. Reaching the average price target will result in a growth of 9.61% 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 2023 earnings on 01/25/2024. Analysts have provided yearly estimates in a range of $12.48 being high and $10.57 being low. For UNP, this leads to a yearly average estimate of $11.70. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Union Pacific Corporation surprised analysts by -$0.13 when it reported $2.64 EPS against a consensus estimate of $2.77. The surprise factor in the prior quarter was $0.13. Based on analyst estimates, the high estimate for the next quarter is $2.96 and the low estimate is $2.42. The average estimate for the next quarter is thus $2.66.

Summary of Insider Activity:

Insiders traded UNP stock several times over the past three months with 10 Buys and 2 Sells. In these transactions, 62 shares were bought while 5,400 shares were sold. The number of buy transactions has increased to 89 while that of sell transactions has risen to 38 over the past year. The total number of shares bought during that period was 295,106 while 236,585 shares were sold.

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