Norfolk Southern (NYSE:NSC) Hits New 1-Year High Following Dividend Announcement

Key Points

• Shares reached a new 52-week high after Norfolk Southern announced a $1.35 dividend payable May 20 (record/ex‑dividend date May 8), equivalent to a $5.40 annualized payout and a 1.7% yield with a 42.35% payout ratio.
• Wall Street sentiment is mixed: the consensus rating is "Hold" with a $310.17 average target, reflecting 7 Buy and 16 Hold ratings and multiple analyst price-target adjustments in the ~$308–$322 range.
• Operationally, Norfolk Southern beat EPS estimates ($3.22 vs. $2.76) while revenue was slightly down year‑over‑year; the company has a market cap of about $78.8B, a P/E near 25, and roughly 75% institutional ownership.

Shares of Norfolk Southern Corporation (NYSE:NSC - Get Free Report) reached a new 52-week high on Friday following a dividend announcement from the company. The company traded as high as $322.20 and last traded at $321.8130, with a volume of 1413253 shares. The stock had previously closed at $298.33.The newly announced dividend which will be paid on Wednesday, May 20th. Shareholders of record on Friday, May 8th will be given a $1.35 dividend. The ex-dividend date of this dividend is Friday, May 8th. This represents a $5.40 annualized dividend and a yield of 1.7%. Norfolk Southern's payout ratio is currently 42.35%.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on NSC shares. Robert W. Baird upped their price objective on Norfolk Southern from $288.00 to $315.00 and gave the company a "neutral" rating in a research note on Friday, March 6th. Jefferies Financial Group cut their price target on shares of Norfolk Southern from $350.00 to $310.00 and set a "hold" rating on the stock in a report on Monday, April 6th. Barclays reduced their price target on shares of Norfolk Southern from $340.00 to $320.00 and set an "overweight" rating for the company in a research report on Friday, January 30th. Sanford C. Bernstein decreased their price objective on shares of Norfolk Southern from $322.00 to $313.00 and set an "outperform" rating for the company in a report on Tuesday, March 31st. Finally, Rothschild & Co Redburn lowered their price objective on shares of Norfolk Southern from $317.00 to $308.00 and set a "neutral" rating on the stock in a research report on Wednesday, April 1st. Seven investment analysts have rated the stock with a Buy rating and sixteen have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $310.17.

Norfolk Southern Price Performance

The firm's 50 day moving average price is $299.51 and its two-hundred day moving average price is $293.60. The company has a debt-to-equity ratio of 1.06, a current ratio of 0.85 and a quick ratio of 0.78. The stock has a market cap of $78.79 billion, a PE ratio of 25.24, a P/E/G ratio of 5.50 and a beta of 1.31.

Norfolk Southern (NYSE:NSC - Get Free Report) last announced its quarterly earnings results on Thursday, January 29th. The railroad operator reported $3.22 EPS for the quarter, beating analysts' consensus estimates of $2.76 by $0.46. The company had revenue of $3 billion for the quarter, compared to analysts' expectations of $3.03 billion. Norfolk Southern had a net margin of 23.59% and a return on equity of 18.78%. Norfolk Southern's revenue was down 1.7% compared to the same quarter last year. During the same period in the prior year, the company posted $3.04 EPS. On average, research analysts expect that Norfolk Southern Corporation will post 12.14 earnings per share for the current year.

Hedge Funds Weigh In On Norfolk Southern

A number of large investors have recently made changes to their positions in NSC. Norges Bank bought a new stake in shares of Norfolk Southern during the 4th quarter valued at $1,084,701,000. Pentwater Capital Management LP bought a new position in Norfolk Southern in the 3rd quarter worth about $826,128,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Norfolk Southern by 545.2% during the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,306,203 shares of the railroad operator's stock valued at $392,396,000 after buying an additional 1,103,748 shares in the last quarter. Balyasny Asset Management L.P. bought a new stake in shares of Norfolk Southern during the third quarter valued at about $329,629,000. Finally, HBK Investments L P increased its position in shares of Norfolk Southern by 67.7% during the fourth quarter. HBK Investments L P now owns 2,130,000 shares of the railroad operator's stock valued at $614,974,000 after buying an additional 860,000 shares during the period. 75.10% of the stock is owned by institutional investors.

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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