Norfolk Southern Corporation $NSC Shares Sold by Sona Asset Management US LLC

Key Points

• Sona Asset Management US LLC reduced its Norfolk Southern stake by 84.4% in the first quarter, selling 375,164 shares and retaining 69,083 shares worth approximately $19.8 million. Institutional investors and hedge funds collectively own 75.1% of NSC.
• Norfolk Southern exceeded quarterly expectations with EPS of $3.52 and revenue of $3.46 billion, up 12.5% year over year. The company also declared a $1.35 quarterly dividend, equivalent to a 1.5% yield.
• Analyst sentiment remains mixed: Barclays and Wells Fargo upgraded their outlooks and raised price targets, while the broader analyst consensus remains “Hold” with a $344.35 target price, below the reported share price of $351.69.

Sona Asset Management US LLC cut its holdings in shares of Norfolk Southern Corporation (NYSE:NSC - Free Report) by 84.4% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 69,083 shares of the railroad operator's stock after selling 375,164 shares during the quarter. Norfolk Southern comprises approximately 0.4% of Sona Asset Management US LLC's investment portfolio, making the stock its 28th biggest position. Sona Asset Management US LLC's holdings in Norfolk Southern were worth $19,827,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the business. JPL Wealth Management LLC acquired a new position in Norfolk Southern in the third quarter valued at about $25,000. BNP Paribas acquired a new stake in shares of Norfolk Southern during the second quarter valued at about $26,000. Meeder Asset Management Inc. increased its position in shares of Norfolk Southern by 239.3% during the fourth quarter. Meeder Asset Management Inc. now owns 95 shares of the railroad operator's stock valued at $27,000 after acquiring an additional 67 shares during the last quarter. Financial Life Planners purchased a new stake in shares of Norfolk Southern in the 1st quarter valued at approximately $33,000. Finally, Bayban purchased a new stake in shares of Norfolk Southern in the 4th quarter valued at approximately $34,000. 75.10% of the stock is owned by institutional investors and hedge funds.

Norfolk Southern Price Performance

Norfolk Southern stock opened at $351.69 on Monday. The stock has a market cap of $78.99 billion, a P/E ratio of 30.01, a price-to-earnings-growth ratio of 6.32 and a beta of 1.27. The company has a fifty day simple moving average of $317.37 and a 200-day simple moving average of $306.29. Norfolk Southern Corporation has a 12-month low of $268.23 and a 12-month high of $358.60. The company has a current ratio of 0.83, a quick ratio of 0.73 and a debt-to-equity ratio of 0.98.

Norfolk Southern (NYSE:NSC - Get Free Report) last posted its earnings results on Thursday, July 23rd. The railroad operator reported $3.52 EPS for the quarter, beating 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 firm had revenue of $3.46 billion for the quarter, compared to analyst estimates of $3.38 billion. During the same quarter in the prior year, the company posted $3.29 earnings per share. Norfolk Southern's revenue for the quarter was up 12.5% compared to the same quarter last year. Equities analysts expect that Norfolk Southern Corporation will post 12.42 EPS for the current fiscal year.

Norfolk Southern Dividend Announcement

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

Analysts Set New Price Targets

NSC has been the subject of a number of research analyst reports. Susquehanna increased their price objective on shares of Norfolk Southern from $337.00 to $360.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 14th. JPMorgan Chase & Co. boosted their target price on Norfolk Southern from $316.00 to $338.00 and gave the company a "neutral" rating in a research report on Friday. UBS Group restated a "neutral" rating and set a $363.00 price target on shares of Norfolk Southern in a research note on Friday. Barclays raised their price target on Norfolk Southern from $360.00 to $400.00 and gave the stock an "overweight" rating in a research report on Friday. Finally, Wells Fargo & Company lifted their price objective on Norfolk Southern from $365.00 to $385.00 and gave the company an "overweight" rating in a research note on Friday. Seven analysts have rated the stock with a Buy rating and sixteen have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $344.35.

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

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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