Union Pacific Corporation (UNP): What’s the Story?

Union Pacific Corporation (UNP) is an interesting player in the Services space, with a focus on Railroads. The stock has been active on the tape, currently trading at $105.99, up from yesterday’s close by 0.51%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Does this stock stack up well when compared to its peers in the industry space? Let’s take a look. Union Pacific Corporation (UNP) currently trades with a market capitalization of $86.25 Billion. That value represents a market adjusting for revenues that have been falling by -0.77 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For UNP, the company currently has $1.28 Billion of cash on the books, which is offset by $758 Million current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $4.03 Billion over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $1.23 on a per share basis this quarter. Perhaps, that suggests something about why 0.37% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Union Pacific Corporation recorded a 52-week high of $110.75. It is now trading 4.76% off that level. The stock is trading $107.16 its 50-day moving average by 1.17%. The stock carved out a 52-week low down at $75.45.

In recent action, Union Pacific Corporation (UNP) has made a move of -3.11% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is outperforming the S&P 500 by 11.51, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 1.23% with $812.98 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of UNP.

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