Is Buying Stock Like Union Pacific Corporation Good Idea After Today’s Bearish Options Activity?

 Is Buying Stock Like Union Pacific Corporation Good Idea After Today's Bearish Options Activity?

In today’s session Union Pacific Corporation (UNP) recorded an unusually high (750) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the January, 2017 put, expecting serious UNP decrease. With 750 contracts traded and 26014 open interest for the Jan, 17 contract, it seems this is a quite bearish bet. The option with symbol: UNP170120P00082500 closed last at: $1.72 or 17.8% up. About 1.39 million shares traded hands. Union Pacific Corporation (NYSE:UNP) has risen 12.70% since March 28, 2016 and is uptrending. It has outperformed by 7.99% the S&P500.

Union Pacific Corporation (NYSE:UNP) Ratings Coverage

Out of 22 analysts covering Union Pacific Corporation (NYSE:UNP), 12 rate it a “Buy”, 1 “Sell”, while 9 “Hold”. This means 55% are positive. Union Pacific Corporation has been the topic of 47 analyst reports since July 24, 2015 according to StockzIntelligence Inc. Credit Suisse maintained Union Pacific Corporation (NYSE:UNP) rating on Friday, February 19. Credit Suisse has “Outperform” rating and $91 price target. The firm earned “Outperform” rating on Thursday, January 21 by Cowen & Co. On Tuesday, September 8 the stock rating was upgraded by Stephens to “Overweight”. The stock has “Buy” rating given by UBS on Friday, July 24. The stock has “Buy” rating given by Deutsche Bank on Monday, October 12. The firm has “Sector Outperform” rating by Scotia Capital given on Tuesday, March 15. The company was initiated on Thursday, August 11 by Atlantic Securities. Barclays Capital downgraded Union Pacific Corporation (NYSE:UNP) rating on Monday, October 5. Barclays Capital has “Equal-Weight” rating and $92 price target. The firm has “Buy” rating given on Monday, February 22 by Bank of America. The rating was maintained by S&P Research on Friday, October 23 with “Buy”.

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 dropped, 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.
Ledyard Commercial Bank has 0.14% invested in the company for 8,801 shares. Andra Ap reported 45,500 shares or 0.1% of all its holdings. Endurance Wealth Mngmt owns 14,650 shares or 0.24% of their US portfolio. Marshall Wace Llp accumulated 412,450 shares or 0.3% of the stock. Calamos Advisors Ltd Co has invested 0.3% of its portfolio in Union Pacific Corporation (NYSE:UNP). Northern holds 0.27% or 9.64M shares in its portfolio. Stanley holds 0.46% of its portfolio in Union Pacific Corporation (NYSE:UNP) for 13,468 shares. Oakbrook Invests Ltd Liability Corporation last reported 0.47% of its portfolio in the stock. Whitnell Company holds 0.92% or 32,418 shares in its portfolio. Quantbot Tech L P holds 0.64% of its portfolio in Union Pacific Corporation (NYSE:UNP) for 69,178 shares. Columbia Asset Mgmt last reported 0.9% of its portfolio in the stock. Northstar Asset Management Limited Liability holds 0.2% of its portfolio in Union Pacific Corporation (NYSE:UNP) for 5,638 shares. Patten Group Inc accumulated 0% or 2,288 shares. Laurion Cap Mngmt L P holds 0.01% or 8,600 shares in its portfolio. Moreover, Blb&B Advisors Ltd Liability Company has 0.08% invested in Union Pacific Corporation (NYSE:UNP) for 4,900 shares.

Insider Transactions: Since June 3, 2016, the stock had 0 buys, and 4 selling transactions for $2.29 million net activity. $485,000 worth of Union Pacific Corporation (NYSE:UNP) was sold by KNIGHT ROBERT M JR on Wednesday, September 7. 6,484 shares were sold by Scott Cameron A, worth $638,285. $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 $73.07 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 17.82 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.

More important recent Union Pacific Corporation (NYSE:UNP) news were published by: Foxbusiness.com which released: “Falling Freight Demand Derails Union Pacific Corporation Earnings” on October 24, 2016, also Prnewswire.com published article titled: “Union Pacific Corporation Invites You to Join Its Third Quarter 2016 Earnings …”, Wsj.com published: “Union Pacific Profit Falls 13% on Demand Woes” on October 20, 2016. More interesting news about Union Pacific Corporation (NYSE:UNP) was released by: Investorplace.com and their article: “Why Union Pacific Corporation (UNP), eBay Inc (EBAY) and Tractor Supply …” with publication date: October 20, 2016.

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