BlackRock Inc. Invests $5.03 Billion in Norfolk Southern Corporation $NSC

Key Points

• BlackRock disclosed a new $5.03 billion position in Norfolk Southern, purchasing 16.0 million shares and owning approximately 7.12% of the railroad operator. Institutional investors collectively hold 75.10% of NSC.
• Norfolk Southern reported quarterly adjusted earnings of $3.52 per share, exceeding estimates of $3.32, while revenue rose 12.5% year over year to $3.46 billion.
• The company declared a quarterly dividend of $1.35 per share, equivalent to $5.40 annually and a 1.6% yield. Analysts maintain a consensus “Hold” rating with an average price target of $348.

BlackRock Inc. purchased a new position in Norfolk Southern Corporation (NYSE:NSC - Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm purchased 16,000,346 shares of the railroad operator's stock, valued at approximately $5,033,549,000. BlackRock Inc. owned approximately 7.12% of Norfolk Southern at the end of the most recent reporting period.

A number of other large investors also recently bought and sold shares of NSC. Louisiana State Employees Retirement System bought a new position in Norfolk Southern during the 1st quarter valued at approximately $3,272,000. O Shaughnessy Asset Management LLC boosted its holdings in Norfolk Southern by 9.8% in the fourth quarter. O Shaughnessy Asset Management LLC now owns 43,408 shares of the railroad operator's stock worth $12,533,000 after acquiring an additional 3,887 shares in the last quarter. SCS Capital Management LLC bought a new stake in Norfolk Southern in the second quarter worth $13,837,000. Focus Partners Advisor Solutions LLC purchased a new stake in shares of Norfolk Southern in the second quarter worth $1,376,000. Finally, GABELLI & Co INVESTMENT ADVISERS INC. grew its stake in shares of Norfolk Southern by 49.3% in the fourth quarter. GABELLI & Co INVESTMENT ADVISERS INC. now owns 50,620 shares of the railroad operator's stock worth $14,615,000 after acquiring an additional 16,720 shares during the last quarter. 75.10% of the stock is owned by hedge funds and other institutional investors.

Norfolk Southern Trading Down 0.5%

Shares of NYSE:NSC opened at $339.44 on Wednesday. The company has a debt-to-equity ratio of 0.98, a current ratio of 0.83 and a quick ratio of 0.73. Norfolk Southern Corporation has a 1 year low of $268.23 and a 1 year high of $358.60. The company has a market cap of $76.24 billion, a P/E ratio of 28.96, a PEG ratio of 5.92 and a beta of 1.27. The stock's fifty day moving average price is $326.03 and its 200-day moving average price is $312.27.

Norfolk Southern (NYSE:NSC - Get Free Report) last released its quarterly earnings data on Thursday, July 23rd. The railroad operator reported $3.52 EPS for the quarter, topping the consensus estimate of $3.32 by $0.20. The company had revenue of $3.46 billion during the quarter, compared to the consensus estimate of $3.38 billion. Norfolk Southern had a return on equity of 18.21% and a net margin of 21.02%.Norfolk Southern's revenue for the quarter was up 12.5% on a year-over-year basis. During the same period last year, the company earned $3.29 EPS. Sell-side analysts expect that Norfolk Southern Corporation will post 12.66 earnings per share for the current year.

Norfolk Southern Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 20th. Stockholders of record on Friday, August 7th will be issued a dividend of $1.35 per share. This represents a $5.40 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend is Friday, August 7th. Norfolk Southern's payout ratio is presently 46.08%.

Wall Street Analysts Forecast Growth

NSC has been the subject of several recent analyst reports. Weiss Ratings raised Norfolk Southern from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, July 24th. Rothschild & Co Redburn increased their price objective on shares of Norfolk Southern from $308.00 to $315.00 and gave the company a "neutral" rating in a research report on Wednesday, April 29th. UBS Group restated a "neutral" rating and set a $363.00 price objective on shares of Norfolk Southern in a research note on Friday, July 24th. Stephens raised shares of Norfolk Southern to a "hold" rating in a report on Wednesday, July 8th. Finally, Citigroup upped their target price on shares of Norfolk Southern from $351.00 to $376.00 and gave the stock a "neutral" rating in a research note on Friday, July 24th. Seven investment analysts have rated the stock with a Buy rating and fifteen have issued a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and an average price target of $348.00.

About Norfolk Southern

Norfolk Southern Corporation is a major U.S. freight railroad company that provides rail transportation and related logistics services. As a Class I carrier, the company operates an extensive network across the eastern United States and offers scheduled freight service for a broad range of industries. Its core operations include long-haul and regional rail freight transportation, intermodal services that move containers and trailers between rail and other modes, and terminal and switching services that support efficient rail shipments for industrial and port customers.

The company transports a variety of commodities, serving sectors such as coal and energy, automotive and automotive parts, chemicals, agriculture, metals and construction materials, and consumer goods.

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