Norfolk Southern Corporation (NYSE:NSC) Given Average Recommendation of "Hold" by Brokerages

Key Points

• Analyst consensus: 23 brokers rate Norfolk Southern an average "Hold" (17 hold, 6 buy) with a one‑year average price target of about $320.28.
• Recent results and payout: Q1 EPS of $2.65 beat estimates by $0.16 while revenue of $3.0B missed expectations, and the company declared a $1.35 quarterly dividend (ex‑dividend May 8, payable May 20), implying a $5.40 annual payout and ~1.7% yield.

Norfolk Southern Corporation (NYSE:NSC - Get Free Report) has been given an average rating of "Hold" by the twenty-three analysts that are covering the stock, Marketbeat Ratings reports. Seventeen equities research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. The average 1 year price objective among brokerages that have covered the stock in the last year is $320.2778.

A number of equities research analysts have issued reports on NSC shares. Jefferies Financial Group cut their target price on shares of Norfolk Southern from $350.00 to $310.00 and set a "hold" rating for the company in a research report on Monday, April 6th. BMO Capital Markets upped their price target on shares of Norfolk Southern from $305.00 to $310.00 and gave the stock a "market perform" rating in a research note on Monday. Robert W. Baird increased their price objective on Norfolk Southern from $315.00 to $330.00 and gave the stock a "neutral" rating in a report on Tuesday. TD Cowen lifted their price objective on Norfolk Southern from $313.00 to $337.00 and gave the company a "buy" rating in a research report on Monday. Finally, Citigroup restated a "neutral" rating on shares of Norfolk Southern in a research note on Friday.

Hedge Funds Weigh In On Norfolk Southern

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Kathmere Capital Management LLC increased its position in Norfolk Southern by 31.6% during the first quarter. Kathmere Capital Management LLC now owns 1,241 shares of the railroad operator's stock worth $356,000 after buying an additional 298 shares during the last quarter. Abel Hall LLC bought a new stake in Norfolk Southern during the first quarter worth approximately $350,000. Whittier Trust Co. of Nevada Inc. boosted its position in Norfolk Southern by 5.7% during the first quarter. Whittier Trust Co. of Nevada Inc. now owns 84,164 shares of the railroad operator's stock worth $24,244,000 after purchasing an additional 4,557 shares during the period. Whittier Trust Co. grew its holdings in Norfolk Southern by 5.3% during the first quarter. Whittier Trust Co. now owns 215,176 shares of the railroad operator's stock valued at $61,982,000 after purchasing an additional 10,895 shares during the last quarter. Finally, Ascentis Independent Advisors bought a new position in shares of Norfolk Southern in the first quarter valued at approximately $63,000. Institutional investors own 75.10% of the company's stock.

Norfolk Southern Price Performance

Shares of NSC opened at $316.86 on Wednesday. The business's 50-day moving average is $299.70 and its 200-day moving average is $294.07. The company has a debt-to-equity ratio of 1.04, a current ratio of 0.91 and a quick ratio of 0.81. The company has a market capitalization of $71.16 billion, a price-to-earnings ratio of 26.69, a P/E/G ratio of 5.89 and a beta of 1.31. Norfolk Southern has a fifty-two week low of $218.05 and a fifty-two week high of $323.37.

Norfolk Southern (NYSE:NSC - Get Free Report) last posted its quarterly earnings results on Friday, April 24th. The railroad operator reported $2.65 EPS for the quarter, topping the consensus estimate of $2.49 by $0.16. Norfolk Southern had a net margin of 21.91% and a return on equity of 18.30%. The business had revenue of $3 billion during the quarter, compared to analysts' expectations of $3.13 billion. During the same period last year, the company posted $2.69 earnings per share. The firm's quarterly revenue was up .2% compared to the same quarter last year. Equities research analysts expect that Norfolk Southern will post 12.11 EPS for the current fiscal year.

Norfolk Southern Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, May 20th. Investors of record on Friday, May 8th will be paid a $1.35 dividend. The ex-dividend date of this dividend is Friday, May 8th. This represents a $5.40 annualized dividend and a dividend yield of 1.7%. Norfolk Southern's payout ratio is presently 45.49%.

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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