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

Shares of Norfolk Southern Co. (NYSE:NSC) gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. 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 EPS for the quarter, topping the consensus estimate 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. Investors of record on Friday, February 7th will be paid a $1.35 dividend. This represents a $5.40 annualized dividend and a dividend yield of 2.05%. Norfolk Southern’s payout ratio is 50.70%.

Analyst Upgrades and Downgrades

NSC has been the topic of several recent research reports. Jefferies Financial Group upped their price target on Norfolk Southern from $275.00 to $280.00 and gave the stock a “buy” rating in a research note on Thursday, October 10th. Stifel Nicolaus upped their target price on shares of Norfolk Southern from $241.00 to $245.00 and gave the stock a “hold” rating in a research report on Friday, October 11th. Sanford C. Bernstein lifted their price target on shares of Norfolk Southern from $285.00 to $286.00 and gave the company an “outperform” rating in a research report on Wednesday, October 9th. Citigroup lifted their target price on shares of Norfolk Southern from $302.00 to $316.00 and gave the company a “buy” rating in a report on Tuesday, November 12th. Finally, Evercore ISI lowered their price objective on Norfolk Southern from $276.00 to $274.00 and set an “outperform” rating for the company in a research note on Wednesday, October 23rd. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and thirteen have issued a buy rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $275.68.

Insider Activity

In related news, Director Sameh Fahmy purchased 350 shares of the business’s stock in a transaction on Thursday, December 12th. The shares were bought at an average cost of $249.37 per share, with a total value of $87,279.50. Following the transaction, 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 ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.19% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. Lake Street Advisors Group LLC increased its holdings in Norfolk Southern by 1.8% during the 3rd quarter. Lake Street Advisors Group LLC now owns 2,265 shares of the railroad operator’s stock worth $563,000 after purchasing an additional 41 shares during the period. Raab & Moskowitz Asset Management LLC grew its position in shares of Norfolk Southern by 2.4% during the third quarter. Raab & Moskowitz Asset Management LLC now owns 1,749 shares of the railroad operator’s stock worth $435,000 after buying an additional 41 shares in the last quarter. Foster Victor Wealth Advisors LLC increased its stake in shares of Norfolk Southern by 4.2% during the third quarter. Foster Victor Wealth Advisors LLC now owns 1,043 shares of the railroad operator’s stock worth $256,000 after buying an additional 42 shares during the period. Stratos Investment Management LLC lifted its stake in Norfolk Southern by 3.8% in the third 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 last quarter. Finally, Archer Investment Corp grew its holdings 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 in the last quarter. 75.10% of the stock is currently owned by hedge funds and other institutional investors.

Norfolk Southern Stock Performance

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 stock’s 50-day simple moving average is $249.41 and its 200 day simple moving average is $248.64. The company has a market capitalization of $59.49 billion, a PE ratio of 24.62, 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.