Traders Purchase Large Volume of Put Options on Norfolk Southern (NYSE:NSC)

Norfolk Southern Corporation (NYSE:NSC) was the recipient of some unusual options trading on Thursday. Traders bought 3,034 put options on the stock. This is an increase of approximately 950% compared to the average daily volume of 289 put options.

Hedge Funds Weigh In On Norfolk Southern

Several institutional investors have recently bought and sold shares of NSC. Norges Bank acquired a new stake in shares of Norfolk Southern during the fourth quarter worth about $1,084,701,000. Pentwater Capital Management LP purchased a new stake in Norfolk Southern during the 3rd quarter worth approximately $826,128,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Norfolk Southern by 545.2% during the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,306,203 shares of the railroad operator’s stock worth $392,396,000 after buying an additional 1,103,748 shares during the period. Balyasny Asset Management L.P. acquired a new stake in Norfolk Southern during the 3rd quarter worth approximately $329,629,000. Finally, HBK Investments L P boosted its position in Norfolk Southern by 67.7% in the 4th quarter. HBK Investments L P now owns 2,130,000 shares of the railroad operator’s stock valued at $614,974,000 after buying an additional 860,000 shares during the period. 75.10% of the stock is owned by institutional investors and hedge funds.

Norfolk Southern Trading Up 0.2%

NYSE NSC traded up $0.64 during trading hours on Thursday, reaching $319.86. The company had a trading volume of 168,980 shares, compared to its average volume of 1,232,783. The company has a current ratio of 0.91, a quick ratio of 0.81 and a debt-to-equity ratio of 1.04. The stock has a market capitalization of $71.84 billion, a P/E ratio of 26.95, a price-to-earnings-growth ratio of 5.96 and a beta of 1.27. The stock has a 50-day moving average of $312.59 and a 200 day moving average of $302.61. Norfolk Southern has a 1-year low of $257.49 and a 1-year high of $326.00.

Norfolk Southern (NYSE:NSC) last announced its quarterly earnings results on Friday, April 24th. The railroad operator reported $2.65 earnings per share for the quarter, beating analysts’ consensus estimates of $2.49 by $0.16. The business had revenue of $3 billion during the quarter, compared to analysts’ expectations of $3.13 billion. Norfolk Southern had a net margin of 21.91% and a return on equity of 18.30%. The business’s revenue for the quarter was up .2% on a year-over-year basis. During the same period last year, the business earned $2.69 earnings per share. As a group, research analysts anticipate that Norfolk Southern will post 12.12 earnings per share for the current fiscal year.

Norfolk Southern Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, May 20th. Stockholders of record on Friday, May 8th were paid a $1.35 dividend. The ex-dividend date of this dividend was Friday, May 8th. This represents a $5.40 dividend on an annualized basis and a dividend yield of 1.7%. Norfolk Southern’s payout ratio is presently 45.49%.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on NSC. Royal Bank Of Canada cut their target price on Norfolk Southern from $360.00 to $320.00 and set a “sector perform” rating for the company in a research note on Wednesday, June 24th. Weiss Ratings cut shares of Norfolk Southern from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, April 27th. Wall Street Zen raised shares of Norfolk Southern from a “sell” rating to a “hold” rating in a research note on Saturday, May 2nd. Barclays boosted their target price on shares of Norfolk Southern from $320.00 to $360.00 and gave the company an “overweight” rating in a report on Monday, April 27th. Finally, Sanford C. Bernstein reduced their price target on shares of Norfolk Southern from $322.00 to $313.00 and set an “outperform” rating on the stock in a research report on Tuesday, March 31st. Seven equities research analysts have rated the stock with a Buy rating and seventeen have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $322.83.

About Norfolk Southern

Norfolk Southern Corporation is a major U.S. freight railroad company that provides rail transportation and related logistics services. As a Class I carrier, the company operates an extensive network across the eastern United States and offers scheduled freight service for a broad range of industries. Its core operations include long-haul and regional rail freight transportation, intermodal services that move containers and trailers between rail and other modes, and terminal and switching services that support efficient rail shipments for industrial and port customers.

The company transports a variety of commodities, serving sectors such as coal and energy, automotive and automotive parts, chemicals, agriculture, metals and construction materials, and consumer goods.