On October 30, 2023, Eric Gehringer, the Executive Vice President of Operations at Union Pacific Corp (UNP, Financial), sold 1,274 shares of the company. This move is part of a trend observed over the past year, where the insider has sold a total of 1,274 shares and made no purchases.
Union Pacific Corp is one of the leading railroad companies in the United States, providing freight transportation services across more than 23 states. Its network covers the western two-thirds of the country, serving many of the fastest-growing U.S. population centers and providing Americans with a fuel-efficient, environmentally responsible, and safe mode of freight transportation.
The insider's recent sell has raised some eyebrows, especially considering the company's performance and valuation. Let's delve deeper into the details.
The insider transaction history for Union Pacific Corp shows a clear trend of more sells than buys over the past year. There have been 4 insider sells and 0 insider buys in total. This could be a signal that insiders believe the stock is currently overvalued, prompting them to sell their shares.
On the day of the insider's recent sell, Union Pacific Corp's shares were trading at $203.24, giving the company a market cap of $126.56 billion. The price-earnings ratio stood at 19.92, which is higher than both the industry median of 12.28 and the company’s historical median price-earnings ratio. This suggests that the stock might be overpriced compared to its earnings.
However, according to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, Union Pacific Corp's stock appears to be modestly undervalued. With a price of $203.24 and a GuruFocus Value of $259.60, the stock has a price-to-GF-Value ratio of 0.78.
In conclusion, while the insider's recent sell might raise concerns, the company's valuation according to the GuruFocus Value suggests that the stock is still undervalued. Investors should keep a close eye on Union Pacific Corp's performance and any future insider transactions to make informed decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
