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

Norfolk Southern Co. (NYSE:NSC)’s stock price gapped up prior to trading 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 earnings per share for the quarter, beating analysts’ consensus estimates 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 declared a quarterly dividend, which will be paid on Thursday, February 20th. Investors of record on Friday, February 7th will be paid a dividend of $1.35 per share. This represents a $5.40 dividend on an annualized basis and a yield of 2.05%. Norfolk Southern’s dividend payout ratio is presently 50.70%.

Analyst Ratings Changes

NSC has been the topic of a number of recent research reports. Loop Capital lifted their target price on shares of Norfolk Southern from $285.00 to $287.00 and gave the company a “buy” rating in a report on Wednesday, October 23rd. Barclays increased their target price on shares of Norfolk Southern from $290.00 to $305.00 and gave the stock an “overweight” rating in a research note on Wednesday, November 13th. Wells Fargo & Company dropped 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. Stephens reissued an “equal weight” rating and issued a $263.00 target price on shares of Norfolk Southern in a report on Wednesday, October 23rd. Finally, Stifel Nicolaus increased their price target on Norfolk Southern from $241.00 to $245.00 and gave the stock a “hold” rating in a report on Friday, October 11th. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and thirteen have given a buy rating to the company’s stock. Based on data from MarketBeat.com, Norfolk Southern presently has an average rating of “Moderate Buy” and an average target price of $275.68.

Insider Activity

In other Norfolk Southern news, Director Sameh Fahmy purchased 350 shares of the stock in a transaction dated Thursday, December 12th. The shares were acquired at an average cost of $249.37 per share, for a total transaction of $87,279.50. Following the completion of the transaction, the director now directly owns 10,350 shares of the company’s stock, valued at $2,580,979.50. This trade represents a 3.50 % increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this hyperlink. Company insiders own 0.19% of the company’s stock.

Institutional Investors Weigh In On Norfolk Southern

Large investors have recently bought and sold shares of the stock. Principal Financial Group Inc. boosted its stake in shares of Norfolk Southern by 3.6% during the third quarter. Principal Financial Group Inc. now owns 255,200 shares of the railroad operator’s stock valued at $63,417,000 after acquiring an additional 8,844 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. grew its holdings in shares of Norfolk Southern by 20.5% during the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 14,428 shares of the railroad operator’s stock worth $3,556,000 after buying an additional 2,453 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. raised its position in shares of Norfolk Southern by 0.7% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 533,459 shares of the railroad operator’s stock valued at $132,565,000 after buying an additional 3,621 shares during the last quarter. Pathway Financial Advisers LLC boosted its position 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 acquiring an additional 889,925 shares during the last quarter. Finally, Grandview Asset Management LLC acquired a new stake in Norfolk Southern during the fourth quarter worth approximately $918,000. Institutional investors and hedge funds own 75.10% of the company’s stock.

Norfolk Southern Price Performance

The stock has a market capitalization of $59.49 billion, a PE ratio of 24.62, a PEG ratio of 2.29 and a beta of 1.34. The company’s 50 day simple moving average is $249.41 and its 200 day simple moving average is $248.64. The company has a current ratio of 0.73, a quick ratio of 0.65 and a debt-to-equity ratio of 1.21.

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.