Rakuten Investment Management Inc. Buys New Shares in Norfolk Southern Corporation $NSC

Key Points

• Rakuten Investment Management initiated a Norfolk Southern position by purchasing 36,730 shares worth approximately $11.6 million. Institutional investors collectively own 75.1% of the railroad operator.
• Norfolk Southern reported quarterly EPS of $3.52, beating estimates of $3.32, while revenue rose 12.5% year over year to $3.46 billion. The company also pays a $1.35 quarterly dividend, or $5.40 annually, yielding about 1.5%.
• NSC shares opened at $348.67, near the analyst consensus price target of $348. Analysts’ overall rating remains Hold, with seven Buy ratings and fifteen Hold ratings.

Rakuten Investment Management Inc. bought a new position in shares of Norfolk Southern Corporation (NYSE:NSC - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 36,730 shares of the railroad operator's stock, valued at approximately $11,631,000.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. Sovereign Financial Group Inc. lifted its holdings in shares of Norfolk Southern by 3.3% during the 1st quarter. Sovereign Financial Group Inc. now owns 1,108 shares of the railroad operator's stock worth $318,000 after acquiring an additional 35 shares during the period. Bar Harbor Wealth Management grew its holdings in Norfolk Southern by 0.6% in the first quarter. Bar Harbor Wealth Management now owns 6,290 shares of the railroad operator's stock valued at $1,805,000 after purchasing an additional 36 shares during the period. Apollon Financial LLC increased its position in Norfolk Southern by 4.3% during the first quarter. Apollon Financial LLC now owns 881 shares of the railroad operator's stock worth $253,000 after purchasing an additional 36 shares during the last quarter. Moss Adams Wealth Advisors LLC increased its position in Norfolk Southern by 4.6% during the first quarter. Moss Adams Wealth Advisors LLC now owns 827 shares of the railroad operator's stock worth $237,000 after purchasing an additional 36 shares during the last quarter. Finally, CYBER HORNET ETFs LLC raised its stake in Norfolk Southern by 6.0% during the fourth quarter. CYBER HORNET ETFs LLC now owns 649 shares of the railroad operator's stock worth $187,000 after purchasing an additional 37 shares during the period. Hedge funds and other institutional investors own 75.10% of the company's stock.

Norfolk Southern Price Performance

Norfolk Southern stock opened at $348.67 on Friday. The firm has a fifty day moving average of $332.87 and a 200-day moving average of $315.01. Norfolk Southern Corporation has a 52-week low of $268.23 and a 52-week high of $358.60. The company has a quick ratio of 0.73, a current ratio of 0.83 and a debt-to-equity ratio of 0.98. The firm has a market capitalization of $78.31 billion, a P/E ratio of 29.75, a PEG ratio of 5.22 and a beta of 1.27.

Norfolk Southern (NYSE:NSC - Get Free Report) last posted its earnings results on Thursday, July 23rd. The railroad operator reported $3.52 earnings per share for the quarter, beating 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 business had revenue of $3.46 billion for the quarter, compared to analyst estimates of $3.38 billion. During the same quarter in the previous year, the business posted $3.29 EPS. The business's quarterly revenue was up 12.5% on a year-over-year basis. As a group, analysts predict that Norfolk Southern Corporation will post 12.74 EPS for the current year.

Norfolk Southern Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, August 20th. Shareholders of record on Friday, August 7th were given a $1.35 dividend. The ex-dividend date of this dividend was Friday, August 7th. This represents a $5.40 annualized dividend and a yield of 1.5%. Norfolk Southern's dividend payout ratio (DPR) is 46.08%.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on NSC shares. Wall Street Zen raised shares of Norfolk Southern from a "sell" rating to a "hold" rating in a research note on Saturday, May 2nd. Robert W. Baird increased their target price on Norfolk Southern from $360.00 to $377.00 and gave the stock a "neutral" rating in a research report on Monday, July 27th. Benchmark reiterated a "hold" rating on shares of Norfolk Southern in a report on Friday, July 24th. BMO Capital Markets boosted their price target on Norfolk Southern from $310.00 to $355.00 and gave the company a "market perform" rating in a research report on Monday, July 27th. Finally, JPMorgan Chase & Co. upped their price target on Norfolk Southern from $316.00 to $338.00 and gave the stock a "neutral" rating in a research note on Friday, July 24th. Seven research analysts have rated the stock with a Buy rating and fifteen have assigned a Hold rating to the company. According to data from MarketBeat.com, Norfolk Southern currently has an average rating of "Hold" and an average price target of $348.00.

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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