Norfolk Southern (NYSE:NSC) Downgraded by Royal Bank Of Canada to "Hold"

Key Points

• Norfolk Southern has been downgraded from a "moderate buy" to a "hold" rating by Royal Bank of Canada, reflecting a cautious outlook from analysts.
• As of the latest reports, the average consensus price target for Norfolk Southern stands at $285.15 despite varying ratings from multiple analysts.
• Norfolk Southern reported quarterly earnings of $3.29 per share, exceeding estimates, with revenues of $3.11 billion for the quarter.

Norfolk Southern (NYSE:NSC - Get Free Report) was downgraded by equities research analysts at Royal Bank Of Canada from a "moderate buy" rating to a "hold" rating in a research report issued on Tuesday, July 29th,Zacks.com reports.

Several other research firms also recently commented on NSC. The Goldman Sachs Group reissued a "neutral" rating and issued a $278.00 target price on shares of Norfolk Southern in a report on Monday, June 2nd. Benchmark downgraded Norfolk Southern from a "buy" rating to a "hold" rating in a report on Wednesday, July 30th. Barclays boosted their target price on Norfolk Southern from $290.00 to $300.00 and gave the stock an "overweight" rating in a report on Wednesday, July 30th. Citigroup boosted their target price on Norfolk Southern from $288.00 to $305.00 and gave the stock a "neutral" rating in a report on Wednesday, July 30th. Finally, JPMorgan Chase & Co. restated a "neutral" rating and issued a $288.00 price target (up previously from $282.00) on shares of Norfolk Southern in a research note on Wednesday, July 30th. Fourteen equities research analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $285.15.

Norfolk Southern Stock Up 0.2%

Shares of NYSE NSC traded up $0.63 during mid-day trading on Tuesday, hitting $278.75. 1,016,394 shares of the stock traded hands, compared to its average volume of 1,543,915. The company has a debt-to-equity ratio of 1.11, a quick ratio of 0.71 and a current ratio of 0.79. Norfolk Southern has a 52 week low of $201.63 and a 52 week high of $288.11. The company has a market cap of $62.61 billion, a price-to-earnings ratio of 18.84, a PEG ratio of 2.44 and a beta of 1.31. The stock has a fifty day moving average price of $260.72 and a 200-day moving average price of $244.93.

Norfolk Southern (NYSE:NSC - Get Free Report) last released its quarterly earnings results on Tuesday, July 29th. The railroad operator reported $3.29 earnings per share for the quarter, beating the consensus estimate of $3.24 by $0.05. Norfolk Southern had a return on equity of 19.35% and a net margin of 27.51%. The company had revenue of $3.11 billion for the quarter, compared to analyst estimates of $3.10 billion. Research analysts anticipate that Norfolk Southern will post 13 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of NSC. Golden State Wealth Management LLC grew its stake in shares of Norfolk Southern by 883.3% during the 1st quarter. Golden State Wealth Management LLC now owns 177 shares of the railroad operator's stock valued at $42,000 after buying an additional 159 shares during the period. Dynamic Advisor Solutions LLC lifted its holdings in shares of Norfolk Southern by 1.9% during the 1st quarter. Dynamic Advisor Solutions LLC now owns 3,571 shares of the railroad operator's stock valued at $846,000 after acquiring an additional 65 shares in the last quarter. Wealth Enhancement Advisory Services LLC increased its holdings in Norfolk Southern by 4.1% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 71,463 shares of the railroad operator's stock valued at $16,925,000 after purchasing an additional 2,782 shares in the last quarter. GAMMA Investing LLC raised its position in Norfolk Southern by 8.3% in the first quarter. GAMMA Investing LLC now owns 4,179 shares of the railroad operator's stock valued at $990,000 after purchasing an additional 321 shares during the period. Finally, Brevan Howard Capital Management LP raised its position in Norfolk Southern by 472.3% in the fourth quarter. Brevan Howard Capital Management LP now owns 43,054 shares of the railroad operator's stock valued at $10,105,000 after purchasing an additional 35,531 shares during the period. 75.10% of the stock is owned by hedge funds and other institutional investors.

Norfolk Southern Company Profile

Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States. The company transports agriculture, forest, and consumer products comprising soybeans, wheat, corn, fertilizers, livestock and poultry feed, food products, food oils, flour, sweeteners, ethanol, lumber and wood products, pulp board and paper products, wood fibers, wood pulp, beverages, and canned goods; chemicals consist of sulfur and related chemicals, petroleum products comprising crude oil, chlorine and bleaching compounds, plastics, rubber, industrial chemicals, chemical wastes, sand, and natural gas liquids; metals and construction materials, such as steel, aluminum products, machinery, scrap metals, cement, aggregates, minerals, clay, transportation equipment, and military-related products; and automotive, including finished motor vehicles and automotive parts, as well as coal.