Carlson Capital L.P. Makes New Investment in Norfolk Southern Corporation $NSC

Key Points

• Carlson Capital L.P. opened a new position in Norfolk Southern during the fourth quarter, buying 5,700 shares valued at about $1.65 million. The stock now represents 0.6% of the fund’s portfolio and is its 11th largest holding.
• Norfolk Southern reported better-than-expected earnings for the latest quarter, with EPS of $2.65 versus estimates of $2.49. However, revenue came in below expectations at $3.0 billion, even though it was slightly higher than a year ago.
• The company declared a quarterly dividend of $1.35 per share, equal to $5.40 annually and a yield of about 1.7%. Meanwhile, analysts are mostly neutral on the stock, with an average Hold rating and a consensus price target of $319.83.

Carlson Capital L.P. bought a new position in shares of Norfolk Southern Corporation (NYSE:NSC - Free Report) in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 5,700 shares of the railroad operator's stock, valued at approximately $1,646,000. Norfolk Southern comprises 0.6% of Carlson Capital L.P.'s portfolio, making the stock its 11th largest holding.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. Strategic Wealth Advisors LLC acquired a new position in Norfolk Southern during the fourth quarter worth about $51,000. Koshinski Asset Management Inc. raised its position in Norfolk Southern by 1.6% during the fourth quarter. Koshinski Asset Management Inc. now owns 9,295 shares of the railroad operator's stock worth $2,684,000 after acquiring an additional 147 shares during the last quarter. Generali Asset Management SPA SGR raised its position in Norfolk Southern by 48.2% during the fourth quarter. Generali Asset Management SPA SGR now owns 14,145 shares of the railroad operator's stock worth $4,084,000 after acquiring an additional 4,599 shares during the last quarter. MGO One Seven LLC raised its position in Norfolk Southern by 2.9% during the fourth quarter. MGO One Seven LLC now owns 4,993 shares of the railroad operator's stock worth $1,442,000 after acquiring an additional 142 shares during the last quarter. Finally, Crestwood Advisors Group LLC raised its position in Norfolk Southern by 6.0% during the fourth quarter. Crestwood Advisors Group LLC now owns 4,890 shares of the railroad operator's stock worth $1,412,000 after acquiring an additional 277 shares during the last quarter. Institutional investors and hedge funds own 75.10% of the company's stock.

Norfolk Southern Stock Performance

Shares of NYSE NSC opened at $312.47 on Friday. Norfolk Southern Corporation has a 12 month low of $222.00 and a 12 month high of $323.37. The company has a 50-day simple moving average of $299.60 and a 200-day simple moving average of $294.95. The company has a market cap of $70.18 billion, a PE ratio of 26.32, a price-to-earnings-growth ratio of 5.79 and a beta of 1.30. The company has a debt-to-equity ratio of 1.04, a current ratio of 0.91 and a quick ratio of 0.81.

Norfolk Southern (NYSE:NSC - Get Free Report) last released its earnings results on Friday, April 24th. The railroad operator reported $2.65 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.49 by $0.16. Norfolk Southern had a net margin of 21.91% and a return on equity of 18.30%. The firm had revenue of $3 billion during the quarter, compared to the consensus estimate of $3.13 billion. During the same period in the previous year, the firm earned $2.69 earnings per share. Norfolk Southern's revenue was up .2% compared to the same quarter last year. On average, equities analysts anticipate that Norfolk Southern Corporation will post 12.11 earnings per share for the current year.

Norfolk Southern Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, May 20th. Investors of record on Friday, May 8th will be issued a $1.35 dividend. This represents a $5.40 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date is Friday, May 8th. Norfolk Southern's payout ratio is presently 45.49%.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on NSC. Wall Street Zen upgraded shares of Norfolk Southern from a "sell" rating to a "hold" rating in a research report on Saturday, May 2nd. UBS Group set a $327.00 price target on shares of Norfolk Southern in a report on Thursday. TD Cowen lifted their price target on shares of Norfolk Southern from $313.00 to $337.00 and gave the stock a "buy" rating in a report on Monday, April 27th. Wolfe Research lifted their price target on shares of Norfolk Southern from $350.00 to $355.00 and gave the stock an "outperform" rating in a report on Tuesday, April 7th. Finally, Rothschild & Co Redburn lifted their price target on shares of Norfolk Southern from $308.00 to $315.00 and gave the stock a "neutral" rating in a report on Wednesday, April 29th. Six analysts have rated the stock with a Buy rating and seventeen have given a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and an average target price of $319.83.

Norfolk Southern Company Profile

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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