Gabelli Funds LLC Buys 3,750 Shares of Norfolk Southern Corporation $NSC

Key Points

• Gabelli Funds LLC increased its stake in Norfolk Southern by 7.3% in the first quarter, buying 3,750 additional shares and bringing its total holding to 54,862 shares valued at about $15.7 million.
• Norfolk Southern beat quarterly expectations with EPS of $3.52 versus $3.32 expected and revenue of $3.46 billion, while revenue rose 12.5% year over year and reached record quarterly sales.
• Analysts remain cautiously positive after the earnings report, with several firms raising price targets, including Wells Fargo to $385 and TD Cowen to $376, though the overall consensus rating is still “Hold.”

Gabelli Funds LLC boosted its stake in shares of Norfolk Southern Corporation (NYSE:NSC - Free Report) by 7.3% in the 1st quarter, according to its most recent Form 13F filing with the SEC. The fund owned 54,862 shares of the railroad operator's stock after purchasing an additional 3,750 shares during the period. Gabelli Funds LLC's holdings in Norfolk Southern were worth $15,745,000 as of its most recent filing with the SEC.

Several other institutional investors have also recently made changes to their positions in the stock. Vanguard Group Inc. grew its stake in shares of Norfolk Southern by 1.3% in the fourth quarter. Vanguard Group Inc. now owns 20,825,837 shares of the railroad operator's stock valued at $6,012,836,000 after buying an additional 272,651 shares in the last quarter. State Street Corp raised its position in Norfolk Southern by 4.1% during the fourth quarter. State Street Corp now owns 9,710,549 shares of the railroad operator's stock worth $2,803,630,000 after acquiring an additional 379,819 shares in the last quarter. Geode Capital Management LLC lifted its stake in Norfolk Southern by 0.7% in the fourth quarter. Geode Capital Management LLC now owns 4,878,029 shares of the railroad operator's stock valued at $1,401,797,000 after acquiring an additional 36,205 shares during the last quarter. Norges Bank acquired a new stake in Norfolk Southern in the fourth quarter valued at $1,084,701,000. Finally, Pentwater Capital Management LP lifted its stake in Norfolk Southern by 9.8% in the fourth quarter. Pentwater Capital Management LP now owns 3,019,000 shares of the railroad operator's stock valued at $871,646,000 after acquiring an additional 269,000 shares during the last quarter. Institutional investors and hedge funds own 75.10% of the company's stock.

Norfolk Southern Stock Up 0.9%

Norfolk Southern stock opened at $351.69 on Friday. The stock has a market cap of $78.99 billion, a P/E ratio of 30.01, a P/E/G ratio of 6.41 and a beta of 1.27. The company has a quick ratio of 0.81, a current ratio of 0.83 and a debt-to-equity ratio of 0.98. Norfolk Southern Corporation has a twelve month low of $268.23 and a twelve month high of $358.60. The company's 50-day moving average price is $317.37 and its two-hundred day moving average price is $306.16.

Norfolk Southern (NYSE:NSC - Get Free Report) last issued its quarterly earnings data on Thursday, July 23rd. The railroad operator reported $3.52 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.32 by $0.20. Norfolk Southern had a net margin of 21.02% and a return on equity of 18.21%. The firm had revenue of $3.46 billion during the quarter, compared to the consensus estimate of $3.38 billion. During the same period last year, the business posted $3.29 earnings per share. The business's revenue for the quarter was up 12.5% compared to the same quarter last year. As a group, analysts expect that Norfolk Southern Corporation will post 12.42 EPS for the current year.

Norfolk Southern Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 20th. Investors 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 yield of 1.5%. The ex-dividend date of this dividend is Friday, August 7th. Norfolk Southern's dividend payout ratio (DPR) is presently 46.08%.

Key Norfolk Southern News

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

• Positive Sentiment: Norfolk Southern beat Q2 expectations, posting $3.52 in EPS and revenue above estimates, with revenue up 12.5% year over year and record quarterly sales. Reuters article
• Positive Sentiment: Wells Fargo raised its price target to $385 and reiterated an overweight rating, signaling confidence that the stock still has room to run. Benzinga article
• Positive Sentiment: Citigroup lifted its target to $376, reflecting a more constructive view after the earnings release, even though it kept a neutral rating. Benzinga article
• Neutral Sentiment: JPMorgan raised its target to $338 but maintained a neutral rating, suggesting valuation looks less compelling after the recent move higher. Benzinga article
• Neutral Sentiment: Some commentary noted lower profitability and margin pressure despite the revenue beat, which may temper enthusiasm if cost pressures persist. Seeking Alpha article
• Negative Sentiment: Profitability was held back by higher fuel costs and lower efficiency, showing that cost inflation remains a headwind even as demand improves. TipRanks article

Analyst Ratings Changes

Several research firms have recently weighed in on NSC. UBS Group restated a "neutral" rating and set a $363.00 price objective on shares of Norfolk Southern in a research note on Friday. Wells Fargo & Company raised their target price on shares of Norfolk Southern from $365.00 to $385.00 and gave the company an "overweight" rating in a research note on Friday. Stephens upgraded Norfolk Southern to a "hold" rating in a report on Wednesday, July 8th. TD Cowen lifted their price target on Norfolk Southern from $337.00 to $376.00 and gave the stock a "buy" rating in a report on Friday. Finally, BMO Capital Markets boosted their price target on Norfolk Southern from $305.00 to $310.00 and gave the stock a "market perform" rating in a research report on Monday, April 27th. Seven equities research analysts have rated the stock with a Buy rating and sixteen have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Norfolk Southern currently has a consensus rating of "Hold" and an average price target of $344.35.

Norfolk Southern 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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