SummitTX Capital L.P. Lowers Stock Holdings in Norfolk Southern Corporation $NSC

Key Points

• SummitTX Capital cut its Norfolk Southern stake by 35.8% in the first quarter, selling 29,571 shares and retaining 53,121 shares valued at approximately $15.2 million. Institutional investors collectively own 75.1% of NSC.
• Norfolk Southern reported quarterly adjusted EPS of $3.52 and revenue of $3.46 billion, beating analyst expectations, while revenue increased 12.5% year over year. Shares opened at $351.69, near the company’s 12-month high.
• The company declared a quarterly dividend of $1.35, equivalent to $5.40 annually and a 1.5% yield. Analysts remain cautious overall, with a consensus “Hold” rating and an average price target of $344.35, despite several firms raising their targets.

SummitTX Capital L.P. reduced its stake in Norfolk Southern Corporation (NYSE:NSC - Free Report) by 35.8% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 53,121 shares of the railroad operator's stock after selling 29,571 shares during the quarter. SummitTX Capital L.P.'s holdings in Norfolk Southern were worth $15,246,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors also recently made changes to their positions in the stock. Sculptor Capital LP boosted its holdings in Norfolk Southern by 29.6% in the first quarter. Sculptor Capital LP now owns 658,413 shares of the railroad operator's stock worth $188,965,000 after acquiring an additional 150,413 shares in the last quarter. OMERS ADMINISTRATION Corp raised its position in shares of Norfolk Southern by 29.6% in the 1st quarter. OMERS ADMINISTRATION Corp now owns 10,526 shares of the railroad operator's stock worth $3,021,000 after purchasing an additional 2,407 shares during the last quarter. Aristotle Atlantic Partners LLC raised its position in shares of Norfolk Southern by 2.5% in the 1st quarter. Aristotle Atlantic Partners LLC now owns 116,670 shares of the railroad operator's stock worth $33,484,000 after purchasing an additional 2,853 shares during the last quarter. Kryger Capital LLC bought a new position in Norfolk Southern in the 1st quarter worth about $152,187,000. Finally, Entropy Technologies LP bought a new position in Norfolk Southern in the 1st quarter worth about $4,235,000. Hedge funds and other institutional investors own 75.10% of the company's stock.

Norfolk Southern Stock Up 0.3%

Shares of Norfolk Southern stock opened at $351.69 on Monday. Norfolk Southern Corporation has a twelve month low of $268.23 and a twelve month 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 company's 50 day moving average is $317.37 and its 200 day moving average is $306.29. The company has a market cap of $78.99 billion, a price-to-earnings ratio of 30.01, a price-to-earnings-growth ratio of 6.32 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 EPS for the quarter, topping analysts' consensus estimates of $3.32 by $0.20. The business had revenue of $3.46 billion during the quarter, compared to the consensus estimate of $3.38 billion. Norfolk Southern had a net margin of 21.02% and a return on equity of 18.21%. The firm's revenue was up 12.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.29 EPS. Research analysts anticipate that Norfolk Southern Corporation will post 12.42 EPS for the current year.

Norfolk Southern Announces Dividend

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

Analyst Ratings Changes

A number of research firms have weighed in on NSC. Wells Fargo & Company raised their price objective on shares of Norfolk Southern from $365.00 to $385.00 and gave the company an "overweight" rating in a research note on Friday. BMO Capital Markets increased their target price on Norfolk Southern from $305.00 to $310.00 and gave the company a "market perform" rating in a research note on Monday, April 27th. Wolfe Research lifted their target price on Norfolk Southern from $350.00 to $355.00 and gave the stock an "outperform" rating in a report on Tuesday, April 7th. UBS Group reaffirmed a "neutral" rating and set a $363.00 price objective on shares of Norfolk Southern in a research report on Friday. Finally, TD Cowen lifted their price objective on Norfolk Southern from $337.00 to $376.00 and gave the stock a "buy" rating in a report on Friday. Seven equities research analysts have rated the stock with a Buy rating and sixteen have given a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $344.35.

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

About Norfolk Southern

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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