Farallon Capital Management LLC Acquires Shares of 615,000 Norfolk Southern Corporation $NSC

Key Points

• Farallon Capital Management LLC filed a new 13F stake in Norfolk Southern, acquiring 615,000 shares worth about $184.75 million and owning roughly 0.27% of the company at quarter-end.
• Q4 results: Norfolk Southern reported $3.22 EPS, beating the $2.76 consensus by $0.46 while revenue was $3.0 billion (down 1.7% year‑over‑year), with a market cap of about $64.96 billion and a PE of 22.69.
• Dividend: The company paid a $1.35 quarterly dividend (annualized $5.40) for a yield of 1.9% and a payout ratio of 42.35%.

Farallon Capital Management LLC acquired a new stake in Norfolk Southern Corporation (NYSE:NSC - Free Report) in the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor acquired 615,000 shares of the railroad operator's stock, valued at approximately $184,752,000. Farallon Capital Management LLC owned 0.27% of Norfolk Southern at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of the business. ORG Partners LLC raised its position in Norfolk Southern by 75.0% in the 3rd quarter. ORG Partners LLC now owns 84 shares of the railroad operator's stock valued at $25,000 after purchasing an additional 36 shares during the last quarter. Westside Investment Management Inc. boosted its stake in Norfolk Southern by 207.1% during the 3rd quarter. Westside Investment Management Inc. now owns 86 shares of the railroad operator's stock worth $26,000 after purchasing an additional 58 shares during the period. BNP Paribas purchased a new position in Norfolk Southern during the 2nd quarter worth $26,000. MMA Asset Management LLC purchased a new position in Norfolk Southern during the 3rd quarter worth $28,000. Finally, Highline Wealth Partners LLC increased its stake in Norfolk Southern by 68.9% in the third quarter. Highline Wealth Partners LLC now owns 103 shares of the railroad operator's stock valued at $31,000 after purchasing an additional 42 shares during the period. 75.10% of the stock is currently owned by hedge funds and other institutional investors.

Norfolk Southern Stock Down 0.7%

NSC stock opened at $289.25 on Monday. The stock has a market capitalization of $64.96 billion, a PE ratio of 22.69, a price-to-earnings-growth ratio of 5.22 and a beta of 1.31. The company has a fifty day moving average of $300.74 and a 200-day moving average of $292.24. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.78 and a current ratio of 0.85. Norfolk Southern Corporation has a one year low of $201.63 and a one year high of $319.94.

Norfolk Southern (NYSE:NSC - Get Free Report) last issued its quarterly earnings results on Thursday, January 29th. The railroad operator reported $3.22 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.76 by $0.46. The business had revenue of $3 billion for the quarter, compared to analyst estimates of $3.03 billion. Norfolk Southern had a net margin of 23.59% and a return on equity of 18.78%. The business's revenue was down 1.7% compared to the same quarter last year. During the same period in the previous year, the business posted $3.04 earnings per share. As a group, analysts expect that Norfolk Southern Corporation will post 13 EPS for the current year.

Norfolk Southern Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, February 20th. Shareholders of record on Friday, February 6th were given a dividend of $1.35 per share. The ex-dividend date was Friday, February 6th. This represents a $5.40 annualized dividend and a yield of 1.9%. Norfolk Southern's payout ratio is presently 42.35%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on NSC shares. JPMorgan Chase & Co. reduced their target price on shares of Norfolk Southern from $301.00 to $296.00 and set a "neutral" rating for the company in a report on Friday, January 30th. Wolfe Research raised their price target on Norfolk Southern from $361.00 to $368.00 and gave the stock an "outperform" rating in a report on Thursday, January 8th. Jefferies Financial Group boosted their price target on Norfolk Southern from $300.00 to $350.00 and gave the company a "hold" rating in a research report on Tuesday, March 3rd. Evercore increased their price objective on Norfolk Southern from $298.00 to $299.00 in a research report on Thursday, December 18th. Finally, Morgan Stanley upgraded Norfolk Southern from an "equal weight" rating to a "buy" rating in a research note on Thursday, December 18th. Eight equities research analysts have rated the stock with a Buy rating and seventeen have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $308.95.

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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