JPMorgan Chase & Co. Cuts Norfolk Southern (NYSE:NSC) Price Target to $318.00

Key Points

• JPMorgan lowered Norfolk Southern’s price target from $338 to $318 while maintaining a “neutral” rating, implying virtually no upside from the stock’s $317.75 trading price.
• Analyst sentiment remains cautious: Norfolk Southern has an average “Hold” rating and a consensus price target of $348.75, based on seven Buy ratings and fourteen Hold ratings.
• The company recently exceeded quarterly expectations, reporting $3.52 in EPS versus a $3.32 estimate and $3.46 billion in revenue, up 12.5% year over year; institutional investors own 75.1% of its shares.

Norfolk Southern (NYSE:NSC - Get Free Report) had its target price decreased by stock analysts at JPMorgan Chase & Co. from $338.00 to $318.00 in a report released on Monday, Benzinga reports. The brokerage currently has a "neutral" rating on the railroad operator's stock. JPMorgan Chase & Co.'s price target suggests a potential upside of 0.08% from the stock's current price.

Other analysts have also recently issued research reports about the company. TD Cowen boosted their price target on Norfolk Southern from $337.00 to $376.00 and gave the stock a "buy" rating in a research report on Friday, July 24th. Stephens upgraded Norfolk Southern to a "hold" rating in a report on Wednesday, July 8th. UBS Group reaffirmed a "neutral" rating and set a $363.00 target price on shares of Norfolk Southern in a research report on Friday, July 24th. Citigroup increased their price target on Norfolk Southern from $351.00 to $376.00 and gave the company a "neutral" rating in a report on Friday, July 24th. Finally, Royal Bank Of Canada reduced their price objective on shares of Norfolk Southern from $360.00 to $330.00 and set a "sector perform" rating for the company in a research note on Thursday, September 24th. Seven equities research analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the stock. According to data from MarketBeat.com, Norfolk Southern presently has an average rating of "Hold" and a consensus price target of $348.75.

Norfolk Southern Stock Up 0.1%

NSC stock traded up $0.32 during trading hours on Monday, hitting $317.75. The company's stock had a trading volume of 148,090 shares, compared to its average volume of 1,204,433. The stock has a 50 day moving average price of $330.93 and a two-hundred day moving average price of $316.90. Norfolk Southern has a 12 month low of $277.80 and a 12 month high of $358.60. The company has a market capitalization of $71.37 billion, a PE ratio of 27.10, a price-to-earnings-growth ratio of 4.76 and a beta of 1.29. The company has a quick ratio of 0.73, a current ratio of 0.83 and a debt-to-equity ratio of 0.98.

Norfolk Southern (NYSE:NSC - Get Free Report) last released its quarterly earnings data on Thursday, July 23rd. The railroad operator reported $3.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.32 by $0.20. The business had revenue of $3.46 billion during the quarter, compared to analyst estimates of $3.38 billion. Norfolk Southern had a net margin of 21.02% and a return on equity of 18.21%. Norfolk Southern's quarterly revenue was up 12.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $3.29 EPS. On average, equities research analysts expect that Norfolk Southern will post 12.75 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. bought a new stake in shares of Norfolk Southern during the second quarter worth $5,033,549,000. Bank of America Corp DE bought a new stake in shares of Norfolk Southern during the second quarter worth $978,977,000. Dimensional Fund Advisors LP raised its position in shares of Norfolk Southern by 2.1% during the first quarter. Dimensional Fund Advisors LP now owns 2,259,558 shares of the railroad operator's stock worth $648,429,000 after acquiring an additional 46,127 shares during the last quarter. Amundi lifted its stake in shares of Norfolk Southern by 24.2% during the first quarter. Amundi now owns 2,226,885 shares of the railroad operator's stock valued at $639,116,000 after acquiring an additional 434,074 shares during the period. Finally, HBK Investments L P boosted its holdings in Norfolk Southern by 0.8% in the second quarter. HBK Investments L P now owns 1,750,000 shares of the railroad operator's stock valued at $550,532,000 after acquiring an additional 13,644 shares during the last quarter. 75.10% of the stock is 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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