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

Norfolk Southern Co. (NYSE:NSCGet Free Report) gapped up prior to trading on Wednesday following a stronger than expected earnings report. 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 traded.

The railroad operator reported $3.04 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.97 by $0.07. Norfolk Southern had a return on equity of 20.25% and a net margin of 19.85%.

Norfolk Southern Announces Dividend

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

Analyst Upgrades and Downgrades

NSC has been the topic of a number of recent research reports. Barclays upped their price objective on shares of Norfolk Southern from $290.00 to $305.00 and gave the stock an “overweight” rating in a report on Wednesday, November 13th. JPMorgan Chase & Co. boosted their price objective on shares of Norfolk Southern from $284.00 to $286.00 and gave the company an “overweight” rating in a report on Thursday. TD Cowen increased their price objective on shares of Norfolk Southern from $253.00 to $259.00 and gave the stock a “hold” rating in a research note on Wednesday, October 23rd. Stifel Nicolaus raised their price objective on Norfolk Southern from $241.00 to $245.00 and gave the stock a “hold” rating in a research note on Friday, October 11th. Finally, Benchmark reaffirmed a “buy” rating and issued a $285.00 target price on shares of Norfolk Southern in a report on Thursday. One investment analyst has rated the stock with a sell rating, five have given a hold rating and thirteen have assigned a buy rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $277.74.

View Our Latest Research Report on NSC

Insider Activity

In related news, Director Sameh Fahmy acquired 350 shares of the firm’s stock in a transaction that occurred on Thursday, December 12th. The stock was bought at an average price of $249.37 per share, for a total transaction of $87,279.50. Following the acquisition, the director now directly owns 10,350 shares of the company’s stock, valued at $2,580,979.50. This represents a 3.50 % increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders own 0.19% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Highline Wealth Partners LLC bought a new stake in Norfolk Southern during the 3rd quarter valued at $25,000. Financial Life Planners purchased a new stake in shares of Norfolk Southern in the 4th quarter valued at $27,000. Keystone Financial Group Inc. acquired a new position in shares of Norfolk Southern in the 4th quarter valued at about $27,000. Morse Asset Management Inc acquired a new position in shares of Norfolk Southern in the 3rd quarter valued at $30,000. Finally, Coastline Trust Co purchased a new stake in shares of Norfolk Southern during the 3rd quarter worth about $32,000. 75.10% of the stock is currently owned by hedge funds and other institutional investors.

Norfolk Southern Price Performance

The stock has a 50-day moving average price of $249.36 and a 200 day moving average price of $248.69. The firm has a market capitalization of $58.26 billion, a PE ratio of 24.18, a PEG ratio of 2.29 and a beta of 1.34. The company has a quick ratio of 0.65, a current ratio of 0.73 and a debt-to-equity ratio of 1.21.

About Norfolk Southern

(Get Free Report)

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.

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