Benchmark Downgrades Norfolk Southern (NYSE:NSC) to Hold

Key Points

• Benchmark has reaffirmed a "hold" rating for Norfolk Southern (NYSE:NSC) in a recent research report, amidst varying ratings from other analysts.
• Citigroup downgraded Norfolk Southern from a "buy" to a "neutral" rating, however, other firms have set higher price targets, indicating mixed perspectives on the stock.
• Norfolk Southern posted earnings of $3.29 per share, slightly beating the consensus estimate and demonstrating a net margin of 27.40% in its latest quarterly earnings report.

Norfolk Southern (NYSE:NSC - Get Free Report) was downgraded by Benchmark from a "buy" rating to a "hold" rating in a note issued to investors on Wednesday, MarketBeat reports.

NSC has been the subject of a number of other reports. Susquehanna reissued a "neutral" rating and issued a $260.00 price objective (up from $250.00) on shares of Norfolk Southern in a report on Tuesday, June 24th. JPMorgan Chase & Co. reiterated a "neutral" rating and set a $288.00 price objective (up previously from $282.00) on shares of Norfolk Southern in a research report on Wednesday. Robert W. Baird increased their price objective on Norfolk Southern from $255.00 to $300.00 and gave the company a "neutral" rating in a research report on Tuesday, July 22nd. Royal Bank Of Canada reduced their target price on Norfolk Southern from $271.00 to $270.00 and set an "outperform" rating for the company in a report on Thursday, April 24th. Finally, UBS Group increased their target price on Norfolk Southern from $275.00 to $279.00 and gave the company a "buy" rating in a report on Friday, May 30th. Fourteen research analysts have rated the stock with a hold rating and seven have given a buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $285.15.

Norfolk Southern Stock Down 0.6%

Shares of NSC traded down $1.66 during midday trading on Wednesday, reaching $274.99. 617,640 shares of the company were exchanged, compared to its average volume of 1,521,521. The company has a current ratio of 0.79, a quick ratio of 0.70 and a debt-to-equity ratio of 1.11. Norfolk Southern has a 1-year low of $201.63 and a 1-year high of $288.11. The stock has a 50-day moving average price of $259.28 and a 200-day moving average price of $244.45. The company has a market cap of $61.77 billion, a price-to-earnings ratio of 18.59, a P/E/G ratio of 2.46 and a beta of 1.31.

Norfolk Southern (NYSE:NSC - Get Free Report) last posted its earnings results on Tuesday, July 29th. The railroad operator reported $3.29 EPS for the quarter, beating the consensus estimate of $3.24 by $0.05. The company had revenue of $3.11 billion during the quarter, compared to analyst estimates of $3.10 billion. Norfolk Southern had a return on equity of 19.35% and a net margin of 27.51%. Research analysts expect that Norfolk Southern will post 13 earnings per share for the current year.

Institutional Investors Weigh In On Norfolk Southern

Hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. grew its position in Norfolk Southern by 1.2% during the first quarter. Vanguard Group Inc. now owns 20,321,359 shares of the railroad operator's stock worth $4,813,114,000 after buying an additional 232,195 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its holdings in shares of Norfolk Southern by 31.5% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 11,319,010 shares of the railroad operator's stock worth $2,680,910,000 after acquiring an additional 2,710,930 shares in the last quarter. Geode Capital Management LLC boosted its holdings in shares of Norfolk Southern by 2.5% in the 4th quarter. Geode Capital Management LLC now owns 4,694,573 shares of the railroad operator's stock worth $1,098,472,000 after acquiring an additional 113,648 shares in the last quarter. Boston Partners boosted its holdings in shares of Norfolk Southern by 3.4% in the 1st quarter. Boston Partners now owns 4,159,070 shares of the railroad operator's stock worth $983,161,000 after acquiring an additional 138,678 shares in the last quarter. Finally, EdgePoint Investment Group Inc. boosted its holdings in shares of Norfolk Southern by 0.7% in the 1st quarter. EdgePoint Investment Group Inc. now owns 3,998,335 shares of the railroad operator's stock worth $947,006,000 after acquiring an additional 29,753 shares in the last quarter. 75.10% of the stock is owned by institutional investors and hedge funds.

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.