London Co. of Virginia Has $487.99 Million Holdings in Norfolk Southern Corporation $NSC

Key Points

• London Co. of Virginia trimmed its Norfolk Southern stake by 6.1% in the first quarter, selling 110,556 shares. Even after the reduction, the fund still held 1.7 million shares valued at about $487.99 million, making NSC its fourth-largest holding.
• Norfolk Southern delivered strong quarterly results, with earnings per share of $3.52 beating estimates and revenue of $3.46 billion topping forecasts. Revenue rose 12.5% year over year, and the company posted record quarterly sales.
• The company continues to return cash to shareholders through a quarterly dividend of $1.35 per share, or $5.40 annually, for a yield of about 1.5%. Analysts largely remain cautious overall, with an average rating of Hold and an average price target of $344.35.

London Co. of Virginia lowered its position in Norfolk Southern Corporation (NYSE:NSC - Free Report) by 6.1% during the first quarter, according to its most recent Form 13F filing with the SEC. The fund owned 1,700,297 shares of the railroad operator's stock after selling 110,556 shares during the period. Norfolk Southern accounts for 3.0% of London Co. of Virginia's portfolio, making the stock its 4th largest holding. London Co. of Virginia owned 0.76% of Norfolk Southern worth $487,994,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in NSC. Brighton Jones LLC lifted its stake in shares of Norfolk Southern by 4.9% in the 4th quarter. Brighton Jones LLC now owns 1,706 shares of the railroad operator's stock valued at $400,000 after purchasing an additional 79 shares during the last quarter. Intech Investment Management LLC boosted its holdings in Norfolk Southern by 40.4% in the first quarter. Intech Investment Management LLC now owns 6,447 shares of the railroad operator's stock worth $1,527,000 after purchasing an additional 1,855 shares in the last quarter. Sivia Capital Partners LLC acquired a new position in Norfolk Southern during the second quarter worth $327,000. Schnieders Capital Management LLC. increased its position in Norfolk Southern by 64.1% during the second quarter. Schnieders Capital Management LLC. now owns 4,275 shares of the railroad operator's stock worth $1,094,000 after buying an additional 1,670 shares during the last quarter. Finally, Jump Financial LLC raised its holdings in Norfolk Southern by 185.1% during the second quarter. Jump Financial LLC now owns 4,588 shares of the railroad operator's stock valued at $1,174,000 after buying an additional 2,979 shares in the last quarter. Institutional investors own 75.10% of the company's stock.

Norfolk Southern Stock Performance

NYSE:NSC opened at $351.69 on Friday. The firm's 50-day moving average is $317.37 and its 200-day moving average is $306.16. The company has a market cap of $78.99 billion, a price-to-earnings ratio of 30.01, a PEG ratio of 6.41 and a beta of 1.27. The company has a debt-to-equity ratio of 0.98, a quick ratio of 0.81 and a current ratio of 0.83. Norfolk Southern Corporation has a 52-week low of $268.23 and a 52-week high of $358.60.

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

Norfolk Southern Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 20th. Shareholders of record on Friday, August 7th will be issued a dividend of $1.35 per share. This represents a $5.40 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend is Friday, August 7th. Norfolk Southern's payout ratio is presently 46.08%.

Analyst Ratings Changes

A number of brokerages have weighed in on NSC. Wolfe Research boosted their price target on Norfolk Southern from $350.00 to $355.00 and gave the stock an "outperform" rating in a research report on Tuesday, April 7th. Evercore set a $358.00 price objective on Norfolk Southern in a report on Thursday. Robert W. Baird raised their price objective on Norfolk Southern from $330.00 to $360.00 and gave the company a "neutral" rating in a research note on Friday, July 10th. JPMorgan Chase & Co. boosted their target price on Norfolk Southern from $316.00 to $338.00 and gave the stock a "neutral" rating in a report on Friday. Finally, Sanford C. Bernstein decreased their target price on Norfolk Southern from $322.00 to $313.00 and set an "outperform" rating for the company in a research report on Tuesday, March 31st. Seven equities research analysts have rated the stock with a Buy rating and sixteen have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $344.35.

Key Headlines Impacting Norfolk Southern

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 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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