Union Pacific (NYSE:UNP) Shares Gap Down – Here’s Why

Shares of Union Pacific Co. (NYSE:UNP) gapped down prior to trading on Thursday . 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.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on UNP. StockNews.com lowered shares of Union Pacific from a “buy” rating to a “hold” rating in a report on Tuesday, October 1st. BMO Capital Markets cut their price target on shares of Union Pacific from $280.00 to $275.00 and set an “outperform” rating for the company in a research note on Friday, September 20th. Barclays lowered their price objective on Union Pacific from $290.00 to $280.00 and set an “overweight” rating on the stock in a research note on Friday, July 26th. Daiwa America downgraded Union Pacific from a “moderate buy” rating to a “hold” rating in a research report on Wednesday, September 4th. Finally, Bank of America lowered their price target on Union Pacific from $273.00 to $270.00 and set a “buy” rating on the stock in a research report on Tuesday, September 24th. Nine equities research analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, Union Pacific currently has a consensus rating of “Moderate Buy” and an average target price of $260.53.

Union Pacific Price Performance

The company has a 50-day moving average price of $246.57 and a 200-day moving average price of $238.60. The firm has a market capitalization of $139.09 billion, a P/E ratio of 21.64, a price-to-earnings-growth ratio of 2.23 and a beta of 1.05. The company has a debt-to-equity ratio of 1.89, a quick ratio of 0.86 and a current ratio of 1.05.

Union Pacific (NYSE:UNP) last posted its earnings results on Thursday, July 25th. The railroad operator reported $2.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.71 by $0.03. The company had revenue of $6.01 billion during the quarter, compared to analyst estimates of $6.05 billion. Union Pacific had a return on equity of 42.62% and a net margin of 26.90%. The company’s revenue for the quarter was up .7% compared to the same quarter last year. During the same period in the previous year, the company earned $2.57 EPS. On average, sell-side analysts predict that Union Pacific Co. will post 11.07 earnings per share for the current year.

Insider Activity at Union Pacific

In other news, President Elizabeth F. Whited sold 3,552 shares of Union Pacific stock in a transaction on Tuesday, July 30th. The shares were sold at an average price of $246.59, for a total transaction 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 document filed with the SEC, which is available through this hyperlink. Corporate insiders own 0.28% of the company’s stock.

Hedge Funds Weigh In On Union Pacific

Institutional investors and hedge funds have recently modified their holdings of the business. Richardson Capital Management LLC acquired a new position in shares of Union Pacific in the first quarter valued at approximately $26,000. Cultivar Capital Inc. bought a new position in Union Pacific during the 2nd quarter worth about $27,000. Strategic Investment Solutions Inc. IL acquired a new stake in shares of Union Pacific in the 2nd quarter valued at about $28,000. Tributary Capital Management LLC bought a new stake in shares of Union Pacific in the first quarter valued at about $30,000. Finally, Financial Gravity Asset Management Inc. boosted its position in shares of Union Pacific by 3,250.0% during the second quarter. Financial Gravity Asset Management Inc. now owns 134 shares of the railroad operator’s stock worth $30,000 after buying an additional 130 shares during the period. 80.38% of the stock is currently owned by institutional investors and hedge funds.

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.