Norfolk Southern (NYSE:NSC) Shares Gap Up After Strong Earnings

Norfolk Southern Co. (NYSE:NSC)’s stock price gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $252.32, but opened at $264.74. Norfolk Southern shares last traded at $261.94, with a volume of 397,870 shares trading hands.

The railroad operator reported $3.04 EPS for the quarter, topping the consensus estimate of $2.97 by $0.07. Norfolk Southern had a net margin of 19.85% and a return on equity of 20.25%.

Norfolk Southern Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, February 20th. Stockholders of record on Friday, February 7th will be issued a $1.35 dividend. This represents a $5.40 dividend on an annualized basis and a dividend yield of 2.10%. The ex-dividend date of this dividend is Friday, February 7th. Norfolk Southern’s dividend payout ratio is presently 50.70%.

Analyst Ratings Changes

A number of brokerages recently commented on NSC. TD Cowen upped their target price on Norfolk Southern from $253.00 to $259.00 and gave the company a “hold” rating in a research report on Wednesday, October 23rd. Benchmark upped their price objective on shares of Norfolk Southern from $270.00 to $285.00 and gave the company a “buy” rating in a report on Wednesday, October 23rd. Wells Fargo & Company reduced their target price on shares of Norfolk Southern from $320.00 to $300.00 and set an “overweight” rating for the company in a report on Tuesday, January 7th. Jefferies Financial Group upped their price target on shares of Norfolk Southern from $275.00 to $280.00 and gave the company a “buy” rating in a report on Thursday, October 10th. Finally, Bank of America lifted their price objective on Norfolk Southern from $276.00 to $291.00 and gave the company a “buy” rating in a research note on Wednesday, October 23rd. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and thirteen have given a buy rating to the company. Based on data from MarketBeat, Norfolk Southern has a consensus rating of “Moderate Buy” and a consensus price target of $277.39.

Insider Activity at Norfolk Southern

In other news, Director Sameh Fahmy acquired 350 shares of the firm’s stock in a transaction on Thursday, December 12th. The shares were bought at an average price of $249.37 per share, for a total transaction of $87,279.50. Following the acquisition, the director now owns 10,350 shares of the company’s stock, valued at approximately $2,580,979.50. This trade represents a 3.50 % increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. 0.19% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Norfolk Southern

Several hedge funds and other institutional investors have recently modified their holdings of NSC. Principal Financial Group Inc. lifted its stake in Norfolk Southern by 3.6% in the 3rd quarter. Principal Financial Group Inc. now owns 255,200 shares of the railroad operator’s stock worth $63,417,000 after purchasing an additional 8,844 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. increased its holdings in shares of Norfolk Southern by 20.5% in the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 14,428 shares of the railroad operator’s stock valued at $3,556,000 after purchasing an additional 2,453 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. lifted its position in Norfolk Southern by 0.7% during the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 533,459 shares of the railroad operator’s stock worth $132,565,000 after buying an additional 3,621 shares in the last quarter. Pathway Financial Advisers LLC boosted its stake in Norfolk Southern by 25,181.8% during the third quarter. Pathway Financial Advisers LLC now owns 893,459 shares of the railroad operator’s stock worth $222,025,000 after buying an additional 889,925 shares during the last quarter. Finally, Grandview Asset Management LLC purchased a new stake in Norfolk Southern in the 4th quarter valued at $918,000. 75.10% of the stock is owned by hedge funds and other institutional investors.

Norfolk Southern Stock Up 1.8 %

The business has a 50 day simple moving average of $249.41 and a 200-day simple moving average of $248.64. The company has a debt-to-equity ratio of 1.21, a quick ratio of 0.65 and a current ratio of 0.73. The firm has a market capitalization of $58.09 billion, a price-to-earnings ratio of 24.11, a P/E/G ratio of 2.29 and a beta of 1.34.

Norfolk Southern Company Profile

Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States. The company transports agriculture, forest, and consumer products comprising soybeans, wheat, corn, fertilizers, livestock and poultry feed, food products, food oils, flour, sweeteners, ethanol, lumber and wood products, pulp board and paper products, wood fibers, wood pulp, beverages, and canned goods; chemicals consist of sulfur and related chemicals, petroleum products comprising crude oil, chlorine and bleaching compounds, plastics, rubber, industrial chemicals, chemical wastes, sand, and natural gas liquids; metals and construction materials, such as steel, aluminum products, machinery, scrap metals, cement, aggregates, minerals, clay, transportation equipment, and military-related products; and automotive, including finished motor vehicles and automotive parts, as well as coal.