Ally Financial Inc. Takes Position in Norfolk Southern Corporation $NSC

Key Points

• Ally Financial Inc. acquired 11,000 shares of Norfolk Southern Corporation valued at approximately $2.6 million, according to a recent SEC filing.
• Multiple analysts have increased their price targets for Norfolk Southern, with Bank of America raising it to $305 and TD Cowen upgrading their rating to a buy.
• Norfolk Southern announced a quarterly dividend of $1.35, representing an annualized dividend yield of 1.9% and a payout ratio of 36.49%.

Ally Financial Inc. purchased a new stake in shares of Norfolk Southern Corporation (NYSE:NSC - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 11,000 shares of the railroad operator's stock, valued at approximately $2,605,000.

A number of other hedge funds and other institutional investors have also modified their holdings of the stock. Fourth Dimension Wealth LLC purchased a new position in Norfolk Southern in the 4th quarter worth about $28,000. Putney Financial Group LLC purchased a new position in Norfolk Southern during the 4th quarter valued at about $30,000. Greenline Partners LLC purchased a new position in Norfolk Southern during the 4th quarter valued at about $31,000. HWG Holdings LP purchased a new position in Norfolk Southern during the 1st quarter valued at about $35,000. Finally, Physician Wealth Advisors Inc. grew its stake in Norfolk Southern by 129.2% during the 1st quarter. Physician Wealth Advisors Inc. now owns 149 shares of the railroad operator's stock valued at $35,000 after acquiring an additional 84 shares in the last quarter. 75.10% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on NSC shares. UBS Group lifted their target price on Norfolk Southern from $275.00 to $279.00 and gave the company a "buy" rating in a research note on Friday, May 30th. The Goldman Sachs Group reaffirmed a "neutral" rating and set a $278.00 target price on shares of Norfolk Southern in a research note on Monday, June 2nd. TD Cowen raised Norfolk Southern from a "hold" rating to a "buy" rating and lifted their target price for the company from $263.00 to $323.00 in a research note on Monday, July 21st. JPMorgan Chase & Co. reissued a "neutral" rating and issued a $288.00 price target (up previously from $282.00) on shares of Norfolk Southern in a research note on Wednesday, July 30th. Finally, Royal Bank Of Canada cut Norfolk Southern from a "moderate buy" rating to a "hold" rating in a research note on Tuesday, July 29th. Seven investment analysts have rated the stock with a Buy rating and fourteen have given a Hold rating to the company. Based on data from MarketBeat, Norfolk Southern has an average rating of "Hold" and an average target price of $285.15.

Norfolk Southern Stock Performance

Shares of Norfolk Southern stock traded down $4.29 during midday trading on Wednesday, hitting $272.38. The company had a trading volume of 2,525,346 shares, compared to its average volume of 2,388,381. Norfolk Southern Corporation has a 1-year low of $201.63 and a 1-year high of $291.69. The business's 50 day simple moving average is $271.16 and its two-hundred day simple moving average is $248.09. The stock has a market cap of $61.18 billion, a PE ratio of 18.40, a P/E/G ratio of 2.45 and a beta of 1.31. The company has a debt-to-equity ratio of 1.11, a current ratio of 0.79 and a quick ratio of 0.71.

Norfolk Southern (NYSE:NSC - Get Free Report) last announced its earnings results on Tuesday, July 29th. The railroad operator reported $3.29 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.24 by $0.05. Norfolk Southern had a net margin of 27.51% and a return on equity of 19.35%. The business had revenue of $3.11 billion for the quarter, compared to analyst estimates of $3.10 billion. Norfolk Southern has set its FY 2025 guidance at EPS. As a group, equities analysts predict that Norfolk Southern Corporation will post 13 EPS for the current fiscal year.

Norfolk Southern Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, August 20th. Investors of record on Friday, August 1st were paid a $1.35 dividend. This represents a $5.40 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date was Friday, August 1st. Norfolk Southern's dividend payout ratio is presently 36.49%.

About Norfolk Southern

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.