Norfolk Southern Corporation (NYSE:NSC) Receives Consensus Rating of "Hold" from Brokerages

Key Points

• Wall Street is cautious on Norfolk Southern: The stock has a consensus rating of "Hold" from 24 brokerages, with 17 holds and 7 buys. The average 12-month price target is about $326.72.
• Recent earnings were mixed but profitable: Norfolk Southern earned $2.65 per share last quarter, topping estimates, but revenue came in below expectations at $3.0 billion. Analysts currently expect the company to post 12.17 EPS for the fiscal year.
• The company continues rewarding shareholders: Norfolk Southern paid a quarterly dividend of $1.35 per share, or $5.40 annually, for a yield of about 1.6%. Institutional investors still own a large majority of the stock at 75.10%.

Shares of Norfolk Southern Corporation (NYSE:NSC - Get Free Report) have received a consensus recommendation of "Hold" from the twenty-four brokerages that are currently covering the company, Marketbeat.com reports. Seventeen equities research analysts have rated the stock with a hold recommendation and seven have assigned a buy recommendation to the company. The average 12 month target price among brokerages that have issued a report on the stock in the last year is $326.7222.

NSC has been the topic of a number of research reports. Sanford C. Bernstein dropped their target price on Norfolk Southern from $322.00 to $313.00 and set an "outperform" rating on the stock in a report on Tuesday, March 31st. Rothschild & Co Redburn raised their price target on shares of Norfolk Southern from $308.00 to $315.00 and gave the stock a "neutral" rating in a report on Wednesday, April 29th. Wolfe Research boosted their price objective on shares of Norfolk Southern from $350.00 to $355.00 and gave the company an "outperform" rating in a research report on Tuesday, April 7th. Evercore set a $325.00 price objective on shares of Norfolk Southern in a research note on Friday, April 24th. Finally, Susquehanna increased their target price on shares of Norfolk Southern from $330.00 to $337.00 and gave the stock a "neutral" rating in a research report on Friday, June 5th.

Institutional Trading of Norfolk Southern

A number of institutional investors have recently bought and sold shares of the company. Gilbert & Cook Inc. increased its stake in Norfolk Southern by 1.4% in the fourth quarter. Gilbert & Cook Inc. now owns 2,515 shares of the railroad operator's stock worth $726,000 after purchasing an additional 35 shares during the period. Moss Adams Wealth Advisors LLC lifted its position in shares of Norfolk Southern by 4.6% during the fourth quarter. Moss Adams Wealth Advisors LLC now owns 791 shares of the railroad operator's stock worth $228,000 after purchasing an additional 35 shares during the last quarter. Confluence Wealth Services Inc. boosted its stake in shares of Norfolk Southern by 1.1% during the fourth quarter. Confluence Wealth Services Inc. now owns 3,090 shares of the railroad operator's stock valued at $892,000 after purchasing an additional 35 shares during the period. Exencial Wealth Advisors LLC boosted its stake in shares of Norfolk Southern by 1.1% during the fourth quarter. Exencial Wealth Advisors LLC now owns 3,216 shares of the railroad operator's stock valued at $929,000 after purchasing an additional 35 shares during the period. Finally, Sovereign Financial Group Inc. grew its holdings in shares of Norfolk Southern by 3.3% in the first quarter. Sovereign Financial Group Inc. now owns 1,108 shares of the railroad operator's stock worth $318,000 after purchasing an additional 35 shares during the last quarter. Institutional investors and hedge funds own 75.10% of the company's stock.

Norfolk Southern Stock Performance

Shares of Norfolk Southern stock opened at $327.60 on Monday. Norfolk Southern has a 12 month low of $257.49 and a 12 month high of $328.58. The company has a quick ratio of 0.81, a current ratio of 0.91 and a debt-to-equity ratio of 1.04. The stock has a market cap of $73.58 billion, a PE ratio of 27.60, a price-to-earnings-growth ratio of 6.02 and a beta of 1.27. The business has a fifty day simple moving average of $313.03 and a 200-day simple moving average of $303.09.

Norfolk Southern (NYSE:NSC - Get Free Report) last posted its quarterly earnings results on Friday, April 24th. The railroad operator reported $2.65 earnings per share for the quarter, beating the consensus estimate of $2.49 by $0.16. Norfolk Southern had a return on equity of 18.30% and a net margin of 21.91%.The firm had revenue of $3 billion for the quarter, compared to analyst estimates of $3.13 billion. During the same period in the previous year, the firm earned $2.69 earnings per share. Norfolk Southern's quarterly revenue was up .2% on a year-over-year basis. On average, sell-side analysts anticipate that Norfolk Southern will post 12.17 EPS for the current fiscal year.

Norfolk Southern Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, May 20th. Stockholders of record on Friday, May 8th were paid a $1.35 dividend. The ex-dividend date of this dividend was Friday, May 8th. This represents a $5.40 dividend on an annualized basis and a dividend yield of 1.6%. Norfolk Southern's dividend payout ratio is 45.49%.

Trending Headlines about Norfolk Southern

Here are the key news stories impacting Norfolk Southern this week:

• Positive Sentiment: Robert W. Baird raised its price target on Norfolk Southern from $330 to $360, signaling more upside potential even though the firm kept a neutral rating. Benzinga report
• Positive Sentiment: Stephens upgraded Norfolk Southern to hold, a modestly more favorable stance that can support sentiment around the stock. Tickerreport.com article
• Neutral Sentiment: A Globe and Mail roundup noted that analyst views on Norfolk Southern are mixed, reinforcing that investors are balancing optimism on valuation with caution on near-term fundamentals. The Globe and Mail article
• Neutral Sentiment: JPMorgan lowered its price target from $331 to $316 and kept a neutral rating, suggesting limited upside from current levels and some pressure on sentiment. Benzinga report
• Negative Sentiment: Unusual options activity showed a surge in put buying, which can indicate that some traders are positioning for downside or hedging against short-term weakness. Options trading report

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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