Norfolk Southern (NYSE:NSC) Price Target Cut to $330.00 by Analysts at Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut Norfolk Southern’s price target to $330 from $360 while maintaining a “sector perform” rating, implying 4.7% upside from the prior close.
• Analyst sentiment remains cautious: Norfolk Southern has an overall “Hold” consensus rating and an average price target of $350.50, based on seven Buy and fourteen Hold ratings.
• The railroad operator exceeded quarterly expectations, reporting $3.52 in EPS versus $3.32 expected and $3.46 billion in revenue versus $3.38 billion forecast; institutional investors own 75.1% of the stock.

Norfolk Southern (NYSE:NSC - Get Free Report) had its target price lowered by Royal Bank Of Canada from $360.00 to $330.00 in a research report issued on Thursday. The brokerage presently has a "sector perform" rating on the railroad operator's stock. Royal Bank Of Canada's target price suggests a potential upside of 4.70% from the stock's previous close.

A number of other equities analysts have also recently issued reports on NSC. UBS Group reaffirmed a "neutral" rating and issued a $363.00 price objective on shares of Norfolk Southern in a research note on Friday, July 24th. Susquehanna increased their price target on Norfolk Southern from $337.00 to $360.00 and gave the company a "neutral" rating in a research note on Tuesday, July 14th. Wells Fargo & Company raised their price target on Norfolk Southern from $365.00 to $385.00 and gave the stock an "overweight" rating in a research report on Friday, July 24th. Benchmark reaffirmed a "hold" rating on shares of Norfolk Southern in a research note on Friday, July 24th. Finally, Robert W. Baird increased their target price on Norfolk Southern from $360.00 to $377.00 and gave the company a "neutral" rating in a research note on Monday, July 27th. Seven research analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company. According to MarketBeat, Norfolk Southern currently has an average rating of "Hold" and a consensus price target of $350.50.

Norfolk Southern Stock Up 0.4%

Shares of NYSE NSC opened at $315.17 on Thursday. Norfolk Southern has a 12-month low of $277.80 and a 12-month high of $358.60. The firm's 50-day simple moving average is $334.66 and its 200 day simple moving average is $316.08. The company has a quick ratio of 0.73, a current ratio of 0.83 and a debt-to-equity ratio of 0.98. The company has a market cap of $70.79 billion, a price-to-earnings ratio of 26.89, a price-to-earnings-growth ratio of 4.66 and a beta of 1.27.

Norfolk Southern (NYSE:NSC - Get Free Report) last announced its earnings results on Thursday, July 23rd. The railroad operator reported $3.52 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.32 by $0.20. The company had revenue of $3.46 billion for 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% on a year-over-year basis. During the same period in the prior year, the business earned $3.29 earnings per share. On average, research analysts expect that Norfolk Southern will post 12.87 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Norfolk Southern

Institutional investors and hedge funds have recently modified their holdings of the business. QRG Capital Management Inc. boosted its holdings in shares of Norfolk Southern by 7.6% in the second quarter. QRG Capital Management Inc. now owns 16,637 shares of the railroad operator's stock valued at $5,234,000 after buying an additional 1,175 shares during the period. Envestnet Portfolio Solutions Inc. lifted its position in Norfolk Southern by 47.1% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 2,707 shares of the railroad operator's stock valued at $852,000 after acquiring an additional 867 shares in the last quarter. Security National Bank of Sioux City Iowa IA bought a new stake in Norfolk Southern in the 2nd quarter valued at $93,000. HBK Investments L P boosted its stake in Norfolk Southern by 0.8% in the 2nd quarter. HBK Investments L P now owns 1,750,000 shares of the railroad operator's stock worth $550,532,000 after purchasing an additional 13,644 shares during the period. Finally, Smith Chas P & Associates PA Cpas bought a new position in Norfolk Southern during the 2nd quarter worth about $209,000. 75.10% of the stock is currently owned by institutional investors and hedge funds.

Norfolk Southern Company Profile

Norfolk Southern Corporation is a major freight railroad company serving the eastern United States. Through its railway network, the company transports raw materials, intermediate goods and finished products for industrial, agricultural, manufacturing and consumer markets. Its operations connect customers with domestic markets, major ports and other rail carriers.

The company transports a diverse range of commodities, including intermodal containers, coal, automotive products, agriculture and consumer goods, chemicals, metals, forest products and construction materials.

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