Encompass Capital Advisors LLC Makes New Investment in Union Pacific Co. (NYSE:UNP)

Encompass Capital Advisors LLC purchased a new stake in shares of Union Pacific Co. (NYSE:UNP) in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 175,000 shares of the railroad operator’s stock, valued at approximately $39,907,000. Union Pacific accounts for approximately 1.5% of Encompass Capital Advisors LLC’s portfolio, making the stock its 28th biggest holding.

Other institutional investors have also modified their holdings of the company. Compass Financial Services Inc bought a new position in Union Pacific in the 4th quarter worth about $25,000. Synergy Asset Management LLC acquired a new position in shares of Union Pacific during the fourth quarter worth approximately $29,000. EnRich Financial Partners LLC acquired a new stake in Union Pacific in the 4th quarter valued at approximately $31,000. PrairieView Partners LLC acquired a new stake in Union Pacific in the 4th quarter valued at approximately $34,000. Finally, Strategic Investment Solutions Inc. IL raised its stake in Union Pacific by 38.8% during the 4th quarter. Strategic Investment Solutions Inc. IL now owns 161 shares of the railroad operator’s stock valued at $39,000 after acquiring an additional 45 shares in the last quarter. Institutional investors own 80.38% of the company’s stock.

Union Pacific Stock Performance

Shares of Union Pacific stock opened at $216.85 on Friday. Union Pacific Co. has a 12 month low of $204.66 and a 12 month high of $258.07. The stock has a market cap of $129.56 billion, a PE ratio of 19.55, a price-to-earnings-growth ratio of 2.15 and a beta of 1.07. The company has a quick ratio of 0.62, a current ratio of 0.77 and a debt-to-equity ratio of 1.76. The business has a fifty day simple moving average of $226.17 and a 200-day simple moving average of $233.96.

Union Pacific (NYSE:UNP) last posted its quarterly earnings results on Thursday, April 24th. The railroad operator reported $2.70 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.73 by ($0.03). Union Pacific had a return on equity of 41.12% and a net margin of 27.82%. The company had revenue of $6.03 billion during the quarter, compared to analysts’ expectations of $6.11 billion. During the same period last year, the company earned $2.69 earnings per share. Union Pacific’s revenue for the quarter was down .1% compared to the same quarter last year. On average, sell-side analysts anticipate that Union Pacific Co. will post 11.99 EPS for the current fiscal year.

Union Pacific Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, June 30th. Stockholders of record on Friday, May 30th will be issued a dividend of $1.34 per share. This represents a $5.36 annualized dividend and a dividend yield of 2.47%. Union Pacific’s dividend payout ratio is currently 48.29%.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on UNP shares. BMO Capital Markets lifted their price objective on shares of Union Pacific from $275.00 to $277.00 and gave the company an “outperform” rating in a research note on Friday, January 24th. Barclays lowered their price objective on shares of Union Pacific from $285.00 to $260.00 and set an “overweight” rating on the stock in a research note on Friday, April 25th. Susquehanna decreased their price target on Union Pacific from $255.00 to $245.00 and set a “neutral” rating for the company in a research note on Friday, April 25th. Benchmark boosted their price objective on Union Pacific from $266.00 to $275.00 and gave the stock a “buy” rating in a research note on Friday, January 24th. Finally, UBS Group decreased their target price on Union Pacific from $255.00 to $245.00 and set a “neutral” rating for the company in a research note on Wednesday, April 2nd. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating, fifteen have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, Union Pacific currently has an average rating of “Moderate Buy” and a consensus price target of $257.86.

Union Pacific 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.