Norfolk Southern Corporation (NYSE:NSC) Stock Has Average Target Price of $348.81

Key Points

• Analyst sentiment is mostly neutral: 21 brokerages have a consensus “Hold” rating on Norfolk Southern, with 14 holds and seven buys; the average 12-month price target is $348.81.
• Quarterly results beat expectations: Norfolk Southern reported EPS of $3.62 versus a $3.46 consensus estimate and revenue of $3.53 billion, up 13.6% year over year.
• The company declared a quarterly dividend of $1.35 per share, equivalent to $5.40 annually and a 1.6% yield.

Norfolk Southern Corporation (NYSE:NSC - Get Free Report) has been given a consensus recommendation of "Hold" by the twenty-one brokerages that are currently covering the stock, Marketbeat Ratings reports. Fourteen investment analysts have rated the stock with a hold recommendation and seven have given a buy recommendation to the company. The average 12 month price target among brokerages that have issued a report on the stock in the last year is $348.81.

NSC has been the subject of a number of recent research reports. Susquehanna dropped their target price on Norfolk Southern from $386.00 to $350.00 and set a "neutral" rating for the company in a report on Friday, October 2nd. Weiss Ratings raised Norfolk Southern from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, October 9th. BMO Capital Markets upped their price target on Norfolk Southern from $310.00 to $355.00 and gave the company a "market perform" rating in a research report on Monday, July 27th. Robert W. Baird upped their price target on Norfolk Southern from $360.00 to $377.00 and gave the company a "neutral" rating in a research report on Monday, July 27th. Finally, Benchmark reiterated a "hold" rating on shares of Norfolk Southern in a research note on Friday, July 24th.

Norfolk Southern Price Performance

NYSE:NSC traded down $5.90 during mid-day trading on Friday, hitting $327.34. The company's stock had a trading volume of 1,864,597 shares, compared to its average volume of 1,066,830. Norfolk Southern has a fifty-two week low of $277.80 and a fifty-two week high of $358.60. The company has a current ratio of 0.90, a quick ratio of 0.81 and a debt-to-equity ratio of 0.95. The company has a market capitalization of $73.53 billion, a price-to-earnings ratio of 27.44, a P/E/G ratio of 4.94 and a beta of 1.20. The stock has a fifty day moving average of $324.09 and a 200-day moving average of $317.11.

Norfolk Southern (NYSE:NSC - Get Free Report) last announced its quarterly earnings results on Thursday, October 22nd. The railroad operator reported $3.62 EPS for the quarter, topping analysts' consensus estimates of $3.46 by $0.16. The firm had revenue of $3.53 billion during the quarter, compared to analysts' expectations of $3.48 billion. Norfolk Southern had a net margin of 20.70% and a return on equity of 18.22%. The company's revenue for the quarter was up 13.6% compared to the same quarter last year. During the same quarter last year, the company earned $3.30 earnings per share. As a group, equities analysts forecast that Norfolk Southern will post 12.90 EPS for the current fiscal year.

Norfolk Southern Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, November 20th. Stockholders of record on Friday, November 6th will be issued a $1.35 dividend. The ex-dividend date of this dividend is Friday, November 6th. This represents a $5.40 annualized dividend and a dividend yield of 1.6%. Norfolk Southern's dividend payout ratio is presently 45.26%.

Institutional Investors Weigh In On Norfolk Southern

Hedge funds have recently made changes to their positions in the company. SCS Capital Management LLC acquired a new stake in shares of Norfolk Southern in the 2nd quarter valued at $13,837,000. B. Metzler seel. Sohn & Co. AG bought a new stake in shares of Norfolk Southern during the second quarter worth $3,669,000. NewEdge Advisors LLC lifted its stake in shares of Norfolk Southern by 17.2% during the second quarter. NewEdge Advisors LLC now owns 35,598 shares of the railroad operator's stock valued at $11,199,000 after acquiring an additional 5,233 shares during the period. Focus Partners Advisor Solutions LLC acquired a new position in shares of Norfolk Southern during the second quarter valued at $1,376,000. Finally, PensionDanmark Pensionsforsikringsaktieselskab lifted its stake in shares of Norfolk Southern by 29.2% during the second quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 54,620 shares of the railroad operator's stock valued at $17,183,000 after acquiring an additional 12,350 shares during the period. Institutional investors and hedge funds own 75.10% of the company's stock.

About Norfolk Southern

Norfolk Southern Corporation is a freight transportation company that operates a major railroad network across the eastern United States. Its rail services connect businesses, ports and communities, and link with other railroads to move goods across North America. The company transports a broad range of products, including coal, chemicals, agricultural goods, automotive vehicles and parts, metals, construction materials and consumer products. Its services include intermodal transportation, which combines rail with truck or container shipping, as well as rail freight and logistics solutions.

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