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

Norfolk Southern Co. (NYSE:NSC)’s share 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 changing hands.

The railroad operator reported $3.04 earnings per share for the quarter, topping 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 disclosed a quarterly dividend, which will be paid on Thursday, February 20th. Investors of record on Friday, February 7th will be issued a $1.35 dividend. The ex-dividend date of this dividend is Friday, February 7th. This represents a $5.40 annualized dividend and a dividend yield of 2.10%. Norfolk Southern’s dividend payout ratio is presently 50.70%.

Analyst Upgrades and Downgrades

NSC has been the subject of several recent research reports. Bank of America raised their price target on shares of Norfolk Southern from $276.00 to $291.00 and gave the company a “buy” rating in a research report on Wednesday, October 23rd. Robert W. Baird upped their target price on shares of Norfolk Southern from $260.00 to $270.00 and gave the company a “neutral” rating in a report on Thursday. Wells Fargo & Company cut their price target on Norfolk Southern from $320.00 to $300.00 and set an “overweight” rating on the stock in a research report on Tuesday, January 7th. Stifel Nicolaus upped their target price on shares of Norfolk Southern from $241.00 to $245.00 and gave the company a “hold” rating in a report on Friday, October 11th. Finally, Citigroup lifted their price objective on shares of Norfolk Southern from $302.00 to $316.00 and gave the company a “buy” rating in a research report on Tuesday, November 12th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and thirteen have issued a buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $277.74.

Insider Buying and Selling at Norfolk Southern

In other news, Director Sameh Fahmy acquired 350 shares of Norfolk Southern stock in a transaction that occurred on Thursday, December 12th. The shares were acquired at an average price of $249.37 per share, with a total value of $87,279.50. Following the completion of the purchase, the director now owns 10,350 shares of the company’s stock, valued at approximately $2,580,979.50. This represents a 3.50 % increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.19% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Norfolk Southern

Large investors have recently added to or reduced their stakes in the business. Lake Street Advisors Group LLC lifted its position in Norfolk Southern by 1.8% during the third quarter. Lake Street Advisors Group LLC now owns 2,265 shares of the railroad operator’s stock worth $563,000 after acquiring an additional 41 shares during the last quarter. Raab & Moskowitz Asset Management LLC raised its position in shares of Norfolk Southern by 2.4% in the third quarter. Raab & Moskowitz Asset Management LLC now owns 1,749 shares of the railroad operator’s stock valued at $435,000 after buying an additional 41 shares in the last quarter. Foster Victor Wealth Advisors LLC boosted its stake in shares of Norfolk Southern by 4.2% in the third quarter. Foster Victor Wealth Advisors LLC now owns 1,043 shares of the railroad operator’s stock valued at $256,000 after buying an additional 42 shares during the period. Stratos Investment Management LLC increased its stake in Norfolk Southern by 3.8% during the 3rd quarter. Stratos Investment Management LLC now owns 1,154 shares of the railroad operator’s stock worth $287,000 after acquiring an additional 42 shares during the period. Finally, Archer Investment Corp increased its stake in Norfolk Southern by 2.3% during the 3rd quarter. Archer Investment Corp now owns 1,934 shares of the railroad operator’s stock worth $481,000 after acquiring an additional 43 shares during the period. 75.10% of the stock is currently owned by hedge funds and other institutional investors.

Norfolk Southern Price Performance

The stock has a market capitalization of $58.26 billion, a price-to-earnings ratio of 24.18, a PEG ratio of 2.29 and a beta of 1.34. 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 company has a fifty day simple moving average of $249.36 and a two-hundred day simple moving average of $248.69.

About Norfolk Southern

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.