Union Pacific (UNP) Downgraded by Zacks Investment Research to Sell
Union Pacific (NYSE:UNP) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Saturday.
According to Zacks, “Shares of Union Pacific have underperformed its industry over the past year due to multiple headwinds like the hurricanes. Moreover, the company's high debt levels are a potent threat. Declining automotive volumes due to sluggish vehicle production in the United States are added concerns. Volumes in its automotive unit have declined 3% on a year-to-date basis. Additionally, higher fuel prices may hinder operating ratio. We are, however, imperessed by the company's efforts to reward shareholders through dividends and buybacks. Efforts to check costs also bode well for the stock.”
Several other research firms have also recently commented on UNP. Barclays reiterated a “buy” rating and set a $150.00 target price on shares of Union Pacific in a research note on Wednesday, December 13th. Argus increased their price objective on shares of Union Pacific from $125.00 to $130.00 and gave the company a “buy” rating in a research note on Tuesday, October 31st. BMO Capital Markets restated a “buy” rating on shares of Union Pacific in a research note on Friday, October 20th. Morgan Stanley cut shares of Union Pacific from an “overweight” rating to an “equal weight” rating and dropped their price objective for the company from $102.00 to $100.00 in a research note on Monday, October 2nd. Finally, Royal Bank of Canada restated a “hold” rating and issued a $124.00 price objective on shares of Union Pacific in a research note on Thursday, November 9th. Four research analysts have rated the stock with a sell rating, thirteen have issued a hold rating and six have assigned a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and a consensus target price of $120.00.
Union Pacific (NYSE:UNP) last released its earnings results on Thursday, October 26th. The railroad operator reported $1.50 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.49 by $0.01. The firm had revenue of $5.41 billion during the quarter, compared to analysts’ expectations of $5.32 billion. Union Pacific had a net margin of 21.84% and a return on equity of 23.35%. The business’s quarterly revenue was up 4.5% compared to the same quarter last year. During the same period in the prior year, the company earned $1.36 EPS. equities analysts predict that Union Pacific will post 5.78 earnings per share for the current year.
A number of large investors have recently modified their holdings of UNP. Neville Rodie & Shaw Inc. boosted its stake in shares of Union Pacific by 2.8% in the 4th quarter. Neville Rodie & Shaw Inc. now owns 60,708 shares of the railroad operator’s stock valued at $8,141,000 after purchasing an additional 1,630 shares during the last quarter. Prudential Financial Inc. boosted its stake in shares of Union Pacific by 12.2% in the 3rd quarter. Prudential Financial Inc. now owns 2,562,570 shares of the railroad operator’s stock valued at $297,180,000 after purchasing an additional 277,810 shares during the last quarter. Atlantic Trust Group LLC boosted its stake in shares of Union Pacific by 24.1% in the 3rd quarter. Atlantic Trust Group LLC now owns 1,247,333 shares of the railroad operator’s stock valued at $144,653,000 after purchasing an additional 241,920 shares during the last quarter. Parametric Portfolio Associates LLC boosted its stake in shares of Union Pacific by 2.0% in the 3rd quarter. Parametric Portfolio Associates LLC now owns 2,052,576 shares of the railroad operator’s stock valued at $238,037,000 after purchasing an additional 39,365 shares during the last quarter. Finally, Affiance Financial LLC bought a new position in shares of Union Pacific in the 3rd quarter valued at about $203,000. 78.43% of the stock is currently owned by hedge funds and other institutional investors.
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About Union Pacific
Union Pacific Corporation is a railroad operating company in the United States. The Company operates through its principal operating company, Union Pacific Railroad Company (UPRR). Its business mix includes Agricultural Products, Automotive, Chemicals, Coal, Industrial Products and Intermodal. Its freight traffic consists of bulk, manifest, and premium business.
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