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

Union Pacific Co. (NYSE:UNP) gapped down before the market opened 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 changing hands.

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

Wall Street Analyst Weigh In

Several research firms have issued reports on UNP. Benchmark restated a “buy” rating and set a $266.00 price objective on shares of Union Pacific in a report on Friday. Royal Bank of Canada dropped their price target on shares of Union Pacific from $288.00 to $283.00 and set an “outperform” rating for the company in a research note on Friday. Sanford C. Bernstein cut their target price on shares of Union Pacific from $277.00 to $272.00 and set an “outperform” rating on the stock in a research note on Wednesday, October 9th. Susquehanna lowered their price objective on Union Pacific from $260.00 to $255.00 and set a “neutral” rating for the company in a report on Friday. Finally, Bank of America reduced their target price on Union Pacific from $273.00 to $270.00 and set a “buy” rating on the stock in a report on Tuesday, September 24th. Nine investment analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, Union Pacific presently has an average rating of “Moderate Buy” and a consensus target price of $259.15.

Insiders Place Their Bets

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

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Richardson Capital Management LLC acquired a new position in Union Pacific during the 1st quarter valued at about $26,000. Strategic Investment Solutions Inc. IL acquired a new stake in shares of Union Pacific in the 2nd quarter worth approximately $28,000. Cultivar Capital Inc. bought a new position in shares of Union Pacific in the second quarter valued at approximately $27,000. Tributary Capital Management LLC acquired a new position in shares of Union Pacific during the first quarter valued at approximately $30,000. Finally, Jamison Private Wealth Management Inc. raised its holdings in Union Pacific by 265.7% during the third quarter. Jamison Private Wealth Management Inc. now owns 128 shares of the railroad operator’s stock worth $32,000 after purchasing an additional 93 shares in the last quarter. 80.38% of the stock is owned by institutional investors and hedge funds.

Union Pacific Trading Down 0.2 %

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

Union Pacific Company Profile

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.