Cheviot Value Management LLC Takes Position in Norfolk Southern Corporation (NYSE:NSC)

Key Points

• Cheviot Value Management LLC has invested approximately $341,000 in Norfolk Southern Corporation by acquiring 1,535 shares during the first quarter, as reported in a recent SEC filing.
• Analysts have mixed views on Norfolk Southern, with a current average rating of "Hold" and an average price target of $285.15, following various adjustments by major firms such as JPMorgan Chase & Co. and Stifel Nicolaus.
• Norfolk Southern recently announced a quarterly dividend of $1.35 per share, translating to an annualized dividend of $5.40 and a yield of 2.0%, with a payout ratio of 36.49%.

Cheviot Value Management LLC bought a new stake in shares of Norfolk Southern Corporation (NYSE:NSC - Free Report) in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm bought 1,535 shares of the railroad operator's stock, valued at approximately $341,000.

Several other large investors also recently modified their holdings of the business. GAMMA Investing LLC grew its stake in Norfolk Southern by 25,555.7% in the first quarter. GAMMA Investing LLC now owns 989,796 shares of the railroad operator's stock worth $234,433,000 after purchasing an additional 985,938 shares in the last quarter. Price T Rowe Associates Inc. MD grew its stake in Norfolk Southern by 11.9% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 8,608,080 shares of the railroad operator's stock worth $2,020,318,000 after purchasing an additional 918,559 shares in the last quarter. The Manufacturers Life Insurance Company grew its stake in Norfolk Southern by 293.7% in the fourth quarter. The Manufacturers Life Insurance Company now owns 671,680 shares of the railroad operator's stock worth $157,643,000 after purchasing an additional 501,053 shares in the last quarter. Phoenix Financial Ltd. acquired a new position in Norfolk Southern in the first quarter worth about $110,209,000. Finally, FMR LLC grew its stake in Norfolk Southern by 13.8% in the fourth quarter. FMR LLC now owns 3,073,933 shares of the railroad operator's stock worth $721,452,000 after purchasing an additional 371,589 shares in the last quarter. 75.10% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the stock. Susquehanna reissued a "neutral" rating and issued a $260.00 target price (up previously from $250.00) on shares of Norfolk Southern in a report on Tuesday, June 24th. Robert W. Baird lifted their price target on Norfolk Southern from $255.00 to $300.00 and gave the company a "neutral" rating in a report on Tuesday, July 22nd. Barclays boosted their target price on Norfolk Southern from $290.00 to $300.00 and gave the stock an "overweight" rating in a report on Wednesday, July 30th. Benchmark cut Norfolk Southern from a "buy" rating to a "hold" rating in a report on Wednesday, July 30th. Finally, BMO Capital Markets reissued a "market perform" rating and set a $255.00 target price on shares of Norfolk Southern in a report on Thursday, April 24th. Fourteen analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. According to MarketBeat, Norfolk Southern currently has an average rating of "Hold" and a consensus price target of $285.15.

Norfolk Southern Price Performance

Shares of NYSE:NSC traded down $2.67 during midday trading on Thursday, hitting $280.28. The stock had a trading volume of 637,740 shares, compared to its average volume of 1,547,121. The company's 50-day moving average price is $262.25 and its 200-day moving average price is $245.44. The company has a market capitalization of $62.96 billion, a P/E ratio of 18.94, a price-to-earnings-growth ratio of 2.48 and a beta of 1.31. The company has a quick ratio of 0.71, a current ratio of 0.79 and a debt-to-equity ratio of 1.11. Norfolk Southern Corporation has a fifty-two week low of $201.63 and a fifty-two week high of $288.11.

Norfolk Southern (NYSE:NSC - Get Free Report) last released its quarterly earnings data 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. The business had revenue of $3.11 billion during the quarter, compared to analysts' expectations of $3.10 billion. Norfolk Southern had a net margin of 27.51% and a return on equity of 19.35%. As a group, equities research analysts predict that Norfolk Southern Corporation will post 13 EPS for the current fiscal year.

Norfolk Southern Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 20th. Stockholders of record on Friday, August 1st will be paid a $1.35 dividend. This represents a $5.40 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend is Friday, August 1st. Norfolk Southern's dividend payout ratio is currently 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.