Norfolk Southern Corporation (NYSE:NSC) Receives Average Recommendation of "Hold" from Analysts

Key Points

• Analyst sentiment is neutral: Twenty-two analysts rate Norfolk Southern an average “Hold,” with 15 holds and seven buys. The average 12-month price target is $348, slightly above the reported $341.85 share price.
• Recent results exceeded expectations: Norfolk Southern reported quarterly EPS of $3.52 versus the $3.32 consensus estimate, while revenue rose 12.5% year over year to $3.46 billion.
• Investors receive a steady dividend: The company declared a quarterly dividend of $1.35, equivalent to $5.40 annually and a 1.6% yield, with a payout ratio of 46.08%.

Shares of Norfolk Southern Corporation (NYSE:NSC - Get Free Report) have received an average rating of "Hold" from the twenty-two analysts that are currently covering the stock, MarketBeat reports. Fifteen investment analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company. The average 12 month price objective among analysts that have covered the stock in the last year is $348.00.

NSC has been the topic of a number of research reports. Stephens raised shares of Norfolk Southern to a "hold" rating in a research report on Wednesday, July 8th. Royal Bank Of Canada increased 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 report on Friday, July 24th. Weiss Ratings raised Norfolk Southern from a "hold (c+)" rating to a "buy (b-)" rating 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 note on Monday, July 27th. Finally, UBS Group reaffirmed a "neutral" rating and set a $363.00 price objective on shares of Norfolk Southern in a research note on Friday, July 24th.

Institutional Investors Weigh In On Norfolk Southern

A number of hedge funds have recently added to or reduced their stakes in NSC. JPL Wealth Management LLC acquired a new position in shares of Norfolk Southern during the third quarter worth approximately $25,000. BNP Paribas bought a new stake in shares of Norfolk Southern during the second quarter valued at approximately $26,000. Meeder Asset Management Inc. increased its holdings in shares of Norfolk Southern by 239.3% in the fourth quarter. Meeder Asset Management Inc. now owns 95 shares of the railroad operator's stock valued at $27,000 after purchasing an additional 67 shares in the last quarter. Financial Life Planners acquired a new stake in shares of Norfolk Southern in the first quarter valued at approximately $33,000. Finally, Bayban bought a new position in Norfolk Southern in the 4th quarter worth approximately $34,000. Institutional investors own 75.10% of the company's stock.

Norfolk Southern Stock Up 0.0%

NSC stock opened at $341.85 on Friday. The stock has a market capitalization of $76.78 billion, a price-to-earnings ratio of 29.17, a price-to-earnings-growth ratio of 6.08 and a beta of 1.27. The company has a 50-day moving average of $321.52 and a two-hundred day moving average of $309.49. The company has a debt-to-equity ratio of 0.98, a current ratio of 0.83 and a quick ratio of 0.73. Norfolk Southern has a 52-week low of $268.23 and a 52-week high of $358.60.

Norfolk Southern (NYSE:NSC - Get Free Report) last issued its quarterly 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 return on equity of 18.21% and a net margin of 21.02%.The company had revenue of $3.46 billion during the quarter, compared to analyst estimates of $3.38 billion. During the same period in the previous year, the company earned $3.29 earnings per share. The company's quarterly revenue was up 12.5% compared to the same quarter last year. As a group, equities research analysts anticipate that Norfolk Southern will post 12.6 EPS for the current year.

Norfolk Southern Announces Dividend

The firm also recently declared 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. This represents a $5.40 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend is Friday, August 7th. Norfolk Southern's payout ratio is currently 46.08%.

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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