Citigroup Has Lowered Expectations for Norfolk Southern (NYSE:NSC) Stock Price

Key Points

• Citigroup cut Norfolk Southern’s price target from $376 to $347 while maintaining a “neutral” rating, implying approximately 10.83% upside from the prior close.
• Analyst sentiment remains mixed: seven firms rate the stock a Buy and 14 rate it a Hold, resulting in a consensus “Hold” rating and average target price of $346.94.
• Norfolk Southern reported quarterly EPS of $3.52, beating estimates of $3.32, while revenue rose 12.5% year over year to $3.46 billion. The stock recently traded at $313.10, and institutional investors own 75.10% of shares.

Norfolk Southern (NYSE:NSC - Get Free Report) had its price objective dropped by research analysts at Citigroup from $376.00 to $347.00 in a report issued on Wednesday, Benzinga reports. The brokerage presently has a "neutral" rating on the railroad operator's stock. Citigroup's price target points to a potential upside of 10.83% from the company's previous close.

A number of other research firms have also weighed in on NSC. Wells Fargo & Company boosted their target price on Norfolk Southern from $365.00 to $385.00 and gave the stock an "overweight" rating in a report on Friday, July 24th. Barclays lifted their price objective on shares of Norfolk Southern from $360.00 to $400.00 and gave the stock an "overweight" rating in a research report on Friday, July 24th. Weiss Ratings lowered shares of Norfolk Southern from a "buy (b)" rating to a "buy (b-)" rating in a research note on Friday, September 25th. Evercore lifted their target price on Norfolk Southern from $358.00 to $360.00 in a report on Wednesday, September 30th. Finally, Susquehanna lowered their price objective on Norfolk Southern from $386.00 to $350.00 and set a "neutral" rating on the stock in a research note on Friday, October 2nd. Seven analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $346.94.

Norfolk Southern Stock Performance

Shares of Norfolk Southern stock traded down $3.21 during trading on Wednesday, hitting $313.10. 327,300 shares of the stock were exchanged, compared to its average volume of 1,198,803. The company has a current ratio of 0.83, a quick ratio of 0.73 and a debt-to-equity ratio of 0.98. The company has a fifty day moving average price of $329.93 and a 200-day moving average price of $317.30. The stock has a market capitalization of $70.33 billion, a price-to-earnings ratio of 26.73, a price-to-earnings-growth ratio of 4.74 and a beta of 1.29. Norfolk Southern has a 1-year low of $277.80 and a 1-year high of $358.60.

Norfolk Southern (NYSE:NSC - Get Free Report) last posted its quarterly earnings results on Thursday, July 23rd. The railroad operator reported $3.52 EPS for the quarter, topping analysts' consensus estimates of $3.32 by $0.20. The business had revenue of $3.46 billion during the quarter, compared to analysts' expectations of $3.38 billion. Norfolk Southern had a return on equity of 18.21% and a net margin of 21.02%.Norfolk Southern's quarterly revenue was up 12.5% on a year-over-year basis. During the same quarter last year, the company posted $3.29 earnings per share. As a group, equities analysts predict that Norfolk Southern will post 12.75 EPS for the current fiscal year.

Institutional Trading of Norfolk Southern

Institutional investors and hedge funds have recently bought and sold shares of the stock. North Point Portfolio Managers Corp OH acquired a new position in Norfolk Southern during the 3rd quarter worth about $28,000. Heartwood Wealth Advisors LLC lifted its stake in shares of Norfolk Southern by 4.2% in the third quarter. Heartwood Wealth Advisors LLC now owns 1,254 shares of the railroad operator's stock worth $387,000 after acquiring an additional 50 shares during the period. CX Institutional boosted its holdings in Norfolk Southern by 7.4% in the third quarter. CX Institutional now owns 5,294 shares of the railroad operator's stock valued at $1,636,000 after acquiring an additional 365 shares during the last quarter. Versant Capital Management Inc boosted its stake in shares of Norfolk Southern by 57.7% in the 3rd quarter. Versant Capital Management Inc now owns 1,120 shares of the railroad operator's stock valued at $346,000 after purchasing an additional 410 shares during the last quarter. Finally, QRG Capital Management Inc. increased its position in shares of Norfolk Southern by 7.6% during the second quarter. QRG Capital Management Inc. now owns 16,637 shares of the railroad operator's stock worth $5,234,000 after buying an additional 1,175 shares during the period. 75.10% of the stock is currently owned by institutional investors and hedge funds.

About Norfolk Southern

Norfolk Southern Corporation NYSE: NSC is a transportation company that operates one of the largest rail networks in the eastern United States. Through its principal subsidiary, Norfolk Southern Railway, the company provides freight rail transportation and related services for industrial, agricultural and consumer markets.

Norfolk Southern's network serves 22 states and the District of Columbia, connecting major ports, manufacturing centers and distribution hubs across the East Coast and the Midwest.

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