Polar Asset Management Partners Inc. Increases Holdings in Norfolk Southern Corporation $NSC

Key Points

• Polar Asset Management Partners increased its Norfolk Southern stake by 88.9% in the first quarter, adding 40,000 shares to hold 85,000 shares valued at approximately $24.4 million. Institutional investors collectively own 75.1% of NSC.
• Norfolk Southern exceeded quarterly expectations, reporting $3.52 in EPS and $3.46 billion in revenue; revenue rose 12.5% year over year. However, higher fuel costs and weaker efficiency continued to pressure profitability.
• NSC shares opened at $351.69, near their 52-week high, while the company declared a quarterly dividend of $1.35 per share, representing a 1.5% annualized yield. Analysts maintain an overall “Hold” rating with an average price target of $344.35.

Polar Asset Management Partners Inc. grew its position in shares of Norfolk Southern Corporation (NYSE:NSC - Free Report) by 88.9% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 85,000 shares of the railroad operator's stock after buying an additional 40,000 shares during the quarter. Norfolk Southern accounts for approximately 0.5% of Polar Asset Management Partners Inc.'s holdings, making the stock its 25th largest position. Polar Asset Management Partners Inc.'s holdings in Norfolk Southern were worth $24,395,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Vanguard Group Inc. increased its position in Norfolk Southern by 1.3% during 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 acquiring an additional 272,651 shares during the last quarter. State Street Corp boosted its position in Norfolk Southern by 4.1% in the fourth quarter. State Street Corp now owns 9,710,549 shares of the railroad operator's stock worth $2,803,630,000 after purchasing an additional 379,819 shares during the last quarter. Geode Capital Management LLC boosted its position 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 worth $1,401,797,000 after purchasing an additional 36,205 shares during the last quarter. Norges Bank bought a new stake in shares of Norfolk Southern during the 4th quarter valued at about $1,084,701,000. Finally, Pentwater Capital Management LP increased its position in shares of Norfolk Southern by 9.8% during 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 purchasing an additional 269,000 shares during the last quarter. 75.10% of the stock is currently owned by hedge funds and other institutional investors.

Norfolk Southern Stock Up 0.3%

NSC stock opened at $351.69 on Monday. The business's 50-day moving average price is $317.37 and its 200-day moving average price is $306.29. The stock has a market cap of $78.99 billion, a P/E ratio of 30.01, a PEG ratio of 6.32 and a beta of 1.27. The company has a quick ratio of 0.73, 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.

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

Norfolk Southern Dividend Announcement

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

Trending Headlines about 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

Analyst Ratings Changes

Several equities analysts have recently weighed in on the stock. Stephens upgraded shares of Norfolk Southern to a "hold" rating in a research note on Wednesday, July 8th. Sanford C. Bernstein reduced their target price on shares of Norfolk Southern from $322.00 to $313.00 and set an "outperform" rating for the company in a report on Tuesday, March 31st. Evercore set a $358.00 price target on shares of Norfolk Southern in a research report on Thursday. Royal Bank Of Canada lifted their price target on shares of Norfolk Southern from $320.00 to $360.00 and gave the stock a "sector perform" rating in a research note on Friday. Finally, Rothschild & Co Redburn boosted their price objective on shares of Norfolk Southern from $308.00 to $315.00 and gave the company a "neutral" rating in a research report on Wednesday, April 29th. Seven analysts have rated the stock with a Buy rating and sixteen have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Norfolk Southern has an average 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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