Empyrean Capital Partners LP Has $91.01 Million Holdings in Norfolk Southern Corporation $NSC

Key Points

• Empyrean Capital Partners increased its Norfolk Southern stake by 55.6% in the first quarter to 317,100 shares valued at approximately $91.0 million. Institutional investors collectively own 75.1% of the railroad operator.
• Norfolk Southern exceeded quarterly expectations, reporting EPS of $3.52 and revenue of $3.46 billion, with revenue up 12.5% year over year. The company also declared a $1.35 quarterly dividend, representing a 1.6% yield.
• Analysts remain generally cautious, with a consensus “Hold” rating and $348 target price, although several firms raised their targets. The proposed Union Pacific merger received additional customer and pricing commitments, but regulatory approval remains outstanding.

Empyrean Capital Partners LP grew its stake in Norfolk Southern Corporation (NYSE:NSC - Free Report) by 55.6% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 317,100 shares of the railroad operator's stock after purchasing an additional 113,300 shares during the quarter. Norfolk Southern comprises approximately 3.0% of Empyrean Capital Partners LP's holdings, making the stock its 5th largest holding. Empyrean Capital Partners LP owned 0.14% of Norfolk Southern worth $91,008,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Norges Bank acquired a new position in Norfolk Southern in the fourth quarter valued at about $1,084,701,000. Pentwater Capital Management LP acquired a new position in shares of Norfolk Southern during the 3rd quarter worth about $826,128,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in shares of Norfolk Southern by 545.2% during the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,306,203 shares of the railroad operator's stock worth $392,396,000 after buying an additional 1,103,748 shares during the period. Balyasny Asset Management L.P. bought a new stake in shares of Norfolk Southern in the 3rd quarter valued at about $329,629,000. Finally, HBK Investments L P increased its stake in shares of Norfolk Southern by 67.7% in the 4th quarter. HBK Investments L P now owns 2,130,000 shares of the railroad operator's stock valued at $614,974,000 after acquiring an additional 860,000 shares during the last quarter. 75.10% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several research firms recently weighed in on NSC. Benchmark reissued a "hold" rating on shares of Norfolk Southern in a research note on Friday. Royal Bank Of Canada upped their target price on shares of Norfolk Southern from $320.00 to $360.00 and gave the company a "sector perform" rating in a research note on Friday. Evercore set a $358.00 target price on shares of Norfolk Southern in a report on Thursday. JPMorgan Chase & Co. lifted their price target on shares of Norfolk Southern from $316.00 to $338.00 and gave the stock a "neutral" rating in a research report on Friday. Finally, Robert W. Baird lifted their price target on shares of Norfolk Southern from $360.00 to $377.00 and gave the stock a "neutral" rating in a research report on Monday. Seven research analysts have rated the stock with a Buy rating and sixteen have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $348.00.

Trending Headlines about Norfolk Southern

Here are the key news stories impacting Norfolk Southern this week:

• Positive Sentiment: Norfolk Southern and Union Pacific submitted supplemental information to the Surface Transportation Board (STB), including expanded gateway-pricing commitments and customer protections. The companies said the measures are designed to support faster, more reliable service and address concerns about the proposed merger. The filing may improve the merger’s regulatory prospects, although STB approval remains outstanding. Union Pacific and Norfolk Southern merger customer assurances
• Positive Sentiment: BMO Capital Markets raised its Norfolk Southern price target to $355 from $310, while Robert W. Baird increased its target to $377 from $360. The higher targets suggest analysts see additional potential value, despite BMO retaining a “market perform” rating and Baird maintaining a “neutral” rating. Benzinga analyst price targets
• Neutral Sentiment: Reports citing JPMorgan, Wells Fargo and Citigroup analysts indicated expectations for Norfolk Southern shares to appreciate, while Barclays continued to rate the stock “buy.” These calls reinforce a generally constructive outlook but provide less immediate impact than a change in earnings or company guidance. JPMorgan analyst outlook Wells Fargo analyst outlook Citigroup analyst outlook Barclays rating
• Negative Sentiment: No new material negative operating or earnings update was reported. However, merger-related regulatory uncertainty remains a risk, and the stock’s elevated valuation means investors may require continued execution and progress toward approval to justify further gains.

Norfolk Southern Stock Performance

NSC opened at $343.05 on Tuesday. The business's 50-day moving average price is $317.84 and its two-hundred day moving average price is $306.66. Norfolk Southern Corporation has a 1 year low of $268.23 and a 1 year high of $358.60. The company has a market capitalization of $77.05 billion, a price-to-earnings ratio of 29.27, a P/E/G ratio of 6.32 and a beta of 1.27. 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 (NYSE:NSC - Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The railroad operator reported $3.52 EPS for the quarter, beating analysts' consensus estimates of $3.32 by $0.20. The company had revenue of $3.46 billion for the quarter, compared to analyst estimates of $3.38 billion. Norfolk Southern had a return on equity of 18.21% and a net margin of 21.02%.The company's quarterly revenue was up 12.5% compared to the same quarter last year. During the same period in the previous year, the company posted $3.29 earnings per share. Equities analysts expect that Norfolk Southern Corporation will post 12.42 EPS for the current fiscal year.

Norfolk Southern Announces Dividend

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

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.

Want to see what other hedge funds are holding NSC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Norfolk Southern Corporation (NYSE:NSC - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.