Fintel reports that on October 20, 2023, RBC Capital reiterated coverage of Union Pacific (NYSE:UNP) with a Outperform recommendation.
Analyst Price Forecast Suggests 18.98% Upside
As of October 5, 2023, the average one-year price target for Union Pacific is 250.25. The forecasts range from a low of 183.82 to a high of $296.10. The average price target represents an increase of 18.98% from its latest reported closing price of 210.33.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Union Pacific is 25,738MM, an increase of 6.62%. The projected annual non-GAAP EPS is 12.01.
Union Pacific Declares $1.30 Dividend
On July 26, 2023 the company declared a regular quarterly dividend of $1.30 per share ($5.20 annualized). Shareholders of record as of August 31, 2023 received the payment on September 29, 2023. Previously, the company paid $1.30 per share.
At the current share price of $210.33 / share, the stock's dividend yield is 2.47%.
Looking back five years and taking a sample every week, the average dividend yield has been 2.19%, the lowest has been 1.70%, and the highest has been 3.40%. The standard deviation of yields is 0.29 (n=235).
The current dividend yield is 0.97 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.50. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.34%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 3503 funds or institutions reporting positions in Union Pacific. This is a decrease of 76 owner(s) or 2.12% in the last quarter. Average portfolio weight of all funds dedicated to UNP is 0.53%, a decrease of 4.25%. Total shares owned by institutions decreased in the last three months by 8.09% to 541,975K shares. 
The put/call ratio of UNP is 0.71, indicating a bullish outlook.
What are Other Shareholders Doing?
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 19,016K shares representing 3.12% ownership of the company. In it's prior filing, the firm reported owning 18,945K shares, representing an increase of 0.37%. The firm decreased its portfolio allocation in UNP by 5.85% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 14,517K shares representing 2.38% ownership of the company. In it's prior filing, the firm reported owning 14,278K shares, representing an increase of 1.65%. The firm decreased its portfolio allocation in UNP by 6.37% over the last quarter.
Capital International Investors holds 13,346K shares representing 2.19% ownership of the company. In it's prior filing, the firm reported owning 11,663K shares, representing an increase of 12.61%. The firm increased its portfolio allocation in UNP by 9.12% over the last quarter.
Bank Of America holds 11,981K shares representing 1.97% ownership of the company. In it's prior filing, the firm reported owning 13,366K shares, representing a decrease of 11.56%. The firm decreased its portfolio allocation in UNP by 6.99% over the last quarter.
Geode Capital Management holds 11,430K shares representing 1.88% ownership of the company. In it's prior filing, the firm reported owning 11,165K shares, representing an increase of 2.32%. The firm decreased its portfolio allocation in UNP by 5.85% over the last quarter.
Union Pacific Background Information
(This description is provided by the company.)
Union Pacific delivers the goods families and businesses use every day with safe, reliable and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations.
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