Kryger Capital LLC Buys Shares of 530,269 Norfolk Southern Corporation $NSC

Key Points

• Kryger Capital LLC disclosed a new first-quarter position in Norfolk Southern, buying 530,269 shares worth about $152.2 million. The railroad stock is now Kryger’s largest holding, representing roughly 10.8% of its portfolio.
• Norfolk Southern reported a strong Q2 earnings beat, with EPS of $3.52 versus $3.32 expected and revenue of $3.46 billion, up 12.5% year over year. The company also posted record quarterly sales.
• Analysts remain mixed but generally constructive: several firms raised price targets after earnings, including Wells Fargo to $385 and Citigroup to $376. The consensus rating is still Hold, with an average target of $344.35.

Kryger Capital LLC purchased a new position in shares of Norfolk Southern Corporation (NYSE:NSC - Free Report) during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 530,269 shares of the railroad operator's stock, valued at approximately $152,187,000. Norfolk Southern makes up about 10.8% of Kryger Capital LLC's investment portfolio, making the stock its largest holding. Kryger Capital LLC owned approximately 0.24% of Norfolk Southern as of its most recent SEC filing.

A number of other institutional investors have also modified their holdings of the company. Vanguard Group Inc. raised its holdings in shares of Norfolk Southern by 1.3% in the 4th 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 during the period. State Street Corp boosted its holdings in Norfolk Southern by 4.1% during the 4th quarter. State Street Corp now owns 9,710,549 shares of the railroad operator's stock valued at $2,803,630,000 after acquiring an additional 379,819 shares during the period. Geode Capital Management LLC boosted its holdings in Norfolk Southern by 0.7% during the 4th 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 period. Norges Bank acquired a new position in Norfolk Southern in the 4th quarter valued at about $1,084,701,000. Finally, Pentwater Capital Management LP grew its position in Norfolk Southern by 9.8% in the 4th 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 in the last quarter. 75.10% of the stock is owned by institutional investors and hedge funds.

Norfolk Southern News Roundup

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

Norfolk Southern Stock Performance

NYSE:NSC opened at $351.69 on Friday. Norfolk Southern Corporation has a 12 month low of $268.23 and a 12 month high of $358.60. The company has a debt-to-equity ratio of 0.98, a current ratio of 0.83 and a quick ratio of 0.81. The firm has a market capitalization of $78.99 billion, a PE ratio of 30.01, a price-to-earnings-growth ratio of 6.37 and a beta of 1.27. The business's fifty day moving average price is $317.37 and its 200 day moving average price is $306.16.

Norfolk Southern (NYSE:NSC - Get Free Report) last announced its quarterly earnings results on Thursday, July 23rd. The railroad operator reported $3.52 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.32 by $0.20. The firm had revenue of $3.46 billion during the quarter, compared to the consensus estimate of $3.38 billion. Norfolk Southern had a return on equity of 18.21% and a net margin of 21.02%.The firm's quarterly revenue was up 12.5% compared to the same quarter last year. During the same period in the prior year, the company posted $3.29 earnings per share. On average, sell-side analysts anticipate that Norfolk Southern Corporation will post 12.24 earnings per share for the current fiscal year.

Norfolk Southern Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, August 20th. Stockholders of record on Friday, August 7th will be issued a $1.35 dividend. The ex-dividend date is Friday, August 7th. This represents a $5.40 annualized dividend and a dividend yield of 1.5%. Norfolk Southern's dividend payout ratio is presently 45.49%.

Analyst Upgrades and Downgrades

NSC has been the topic of several research reports. Jefferies Financial Group reduced their price target on shares of Norfolk Southern from $350.00 to $310.00 and set a "hold" rating on the stock in a research report on Monday, April 6th. Weiss Ratings cut shares of Norfolk Southern from a "buy (b-)" rating to a "hold (c+)" rating in a report on Monday, April 27th. Barclays upped their target price on shares of Norfolk Southern from $360.00 to $400.00 and gave the stock an "overweight" rating in a research note on Friday. Sanford C. Bernstein reduced their target price on shares of Norfolk Southern from $322.00 to $313.00 and set an "outperform" rating on the stock in a report on Tuesday, March 31st. Finally, Evercore set a $358.00 price target on shares of Norfolk Southern in a research report on Thursday. Six equities research analysts have rated the stock with a Buy rating and seventeen have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company 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.

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.