Is Buying Union Pacific Corporation Here a Winning Strategy? Option Traders Like The Stock

 Is Buying Union Pacific Corporation Here a Winning Strategy? Option Traders Like The Stock

In today’s session Union Pacific Corporation (UNP) registered an unusually high (4,003) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the January, 2017 call, expecting serious UNP increase. With 4,003 contracts traded and 96954 open interest for the Jan, 17 contract, it seems this is a quite bullish bet. The option with symbol: UNP170120C00085000 closed last at: $12.95 or 5.7% up. About 965,411 shares traded hands. Union Pacific Corporation (NYSE:UNP) has risen 20.52% since March 14, 2016 and is uptrending. It has outperformed by 14.91% the S&P500.

Analysts await Union Pacific Corporation (NYSE:UNP) to report earnings on October, 27. They expect $1.39 EPS, down 7.33% or $0.11 from last year’s $1.5 per share. UNP’s profit will be $1.16B for 17.42 P/E if the $1.39 EPS becomes a reality. After $1.17 actual EPS reported by Union Pacific Corporation for the previous quarter, Wall Street now forecasts 18.80% EPS growth.

Union Pacific Corporation (NYSE:UNP) Ratings Coverage

Out of 21 analysts covering Union Pacific Corporation (NYSE:UNP), 13 rate it a “Buy”, 1 “Sell”, while 7 “Hold”. This means 62% are positive. Union Pacific Corporation has been the topic of 44 analyst reports since July 24, 2015 according to StockzIntelligence Inc. As per Thursday, August 11, the company rating was initiated by Atlantic Securities. RBC Capital Markets maintained Union Pacific Corporation (NYSE:UNP) on Wednesday, September 2 with “Outperform” rating. The rating was maintained by Credit Suisse on Friday, February 19 with “Outperform”. Bank of America upgraded the stock to “Buy” rating in Monday, February 22 report. Barclays Capital downgraded the shares of UNP in a report on Monday, October 5 to “Equal-Weight” rating. As per Tuesday, March 15, the company rating was initiated by Scotia Capital. The firm has “Buy” rating by UBS given on Friday, July 24. Bank of America maintained the stock with “Buy” rating in Friday, September 11 report. The stock has “Outperform” rating given by Credit Suisse on Friday, January 22. On Monday, June 20 the stock rating was downgraded by Scotia Capital to “Sector Perform”.

According to Zacks Investment Research, “Union Pacific Corp. consists of one reportable segment, rail transportation, and the company’s other product lines. The rail segment includes the operations of the corporation’s wholly owned subsidiary, Union Pacific Railroad Company and Union Pacific Railroad Company’s subsidiaries and rail affiliates. The company’s other operations include the trucking product line, as well as the other product lines that include technology, self-insurance activities, corporate holding company operations, and all appropriate consolidating entries.”

Insitutional Activity: The institutional sentiment decreased to 0.84 in 2016 Q2. Its down 0.17, from 1.01 in 2016Q1. The ratio worsened, as 81 funds sold all Union Pacific Corporation shares owned while 481 reduced positions. 84 funds bought stakes while 388 increased positions. They now own 620.30 million shares or 4.45% less from 649.16 million shares in 2016Q1.
Moreover, D E Shaw And Inc has 0.14% invested in Union Pacific Corporation (NYSE:UNP) for 849,523 shares. Veritas Mngmt (Uk) Limited has 71,235 shares for 2.88% of their US portfolio. Alpine Woods Cap Investors Limited Liability Corporation last reported 47,500 shares in the company. Osborne Prtn Mgmt Ltd Com has 1.39% invested in the company for 106,606 shares. The Georgia-based Signaturefd Ltd has invested 0.02% in Union Pacific Corporation (NYSE:UNP). Janney Montgomery Scott Limited reported 167,631 shares or 0.22% of all its holdings. Paloma Mngmt holds 0.14% or 149,844 shares in its portfolio. Monetta Finance Ser has 24,000 shares for 1.32% of their US portfolio. Green Square Limited Com accumulated 1.18% or 54,781 shares. The New York-based Douglass Winthrop Advsr Ltd Liability Co has invested 0.18% in Union Pacific Corporation (NYSE:UNP). Next Fincl Group Inc has 0.14% invested in the company for 5,056 shares. Bluemountain Cap Management Ltd Liability Corporation has 3,831 shares for 0.01% of their US portfolio. Laurel Grove Capital Ltd Liability Corp last reported 40,950 shares in the company. Roosevelt Investment Group Inc, a New York-based fund reported 95,462 shares. Wunderlich Capital Managemnt reported 16,762 shares or 1.24% of all its holdings.

Insider Transactions: Since June 3, 2016, the stock had 0 insider buys, and 4 selling transactions for $2.29 million net activity. On Friday, October 7 Scott Cameron A sold $638,285 worth of the stock or 6,484 shares. The insider KNIGHT ROBERT M JR sold $485,000. $213,650 worth of Union Pacific Corporation (NYSE:UNP) shares were sold by DUREN DIANE K.

Union Pacific Corporation operates through its principal operating company, Union Pacific Railroad Company. The company has a market cap of $80.75 billion. Union Pacific Railroad Company links approximately 20 states in the western two-thirds of the country by rail, providing link in the supply chain. It has a 18.87 P/E ratio. The Company’s business mix includes agricultural products, automotive, chemicals, coal, industrial products and intermodal.

UNP Company Profile

Union Pacific Corporation, incorporated on February 3, 1969, operates through its principal operating company, Union Pacific Railroad Company. Union Pacific Railroad Company links approximately 20 states in the western two-thirds of the country by rail, providing link in the supply chain. The Company’s business mix includes agricultural products, automotive, chemicals, coal, industrial products and intermodal. The Firm operates from West Coast and Gulf Coast ports to eastern gateways, connects with Canada’s rail systems and serves approximately six Mexico gateways. The Firm is a Class I railroad operating in the United States. The Company’s network includes approximately 32,080 route miles, linking Pacific Coast and Gulf Coast ports with the Midwest and Eastern United States gateways and providing several corridors to Mexican gateways. It owns approximately 26,060 miles and operates on the remainder pursuant to trackage rights or leases. It serves the western two-thirds of the country and maintains coordinated schedules with other rail carriers for the handling of freight to and from the Atlantic Coast, the Pacific Coast, the Southeast, the Southwest, Canada and Mexico. Export and import traffic is moved through Gulf Coast and Pacific Coast ports and across the Mexican and Canadian borders.

Another recent and important Union Pacific Corporation (NYSE:UNP) news was published by Prnewswire.com which published an article titled: “Union Pacific Corporation Invites You to Join Its Third Quarter 2016 Earnings …” on October 13, 2016.

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